LONDON (ShareCast) - (ShareCast News) - Ascential has begun preparations to sell 13 of its "heritage" business-to-business publishing and events brands as it looks to focus on those with higher growth potential.
The brands have been hived off into a separate operating entity where they will develop an independent business strategy as new owners are sought out.

The brands are the Health Service Journal, Drapers, Nursing Times, Local Government Chronicle, MEED, Construction News, New Civil Engineer, Ground Engineering, H&V News, RAC, Retail Jeweller, Materials Recycling World and architecture titles including Architects' Journal, The Architectural Review and the associated World Architecture Festival.

The group, which was floated by former owners Apax Partners and the Guardian Media Group in February last year, will be reporting the brands as separate segment for its 2016 financial year, due to be announced on 27 February 2017.

The brands generated revenues of £26m in the first half of 2016, down from £29m in the previous, having reported sales of £63m for the whole of 2015 and £64m in 2014.

Chief executive Duncan Painter pointed out that Ascential's top five products represented 56% of group revenue and 71% of adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the 12 months to 30 June 2016.

"Ascential's growth strategy continues to be to focus its resources and investment on its largest brands and those with the highest growth potential.

"This move will further focus our portfolio on our largest market leading products. The heritage brands, with large, loyal audience communities, provide an exciting opportunity for new owners," he said.

The share price rose 0.76% to 270.03p at 0922 GMT on Thursday.

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