Vitesse Media shrinks losses as sales plunge

Publishing and events firm Vitesse Media shrunk interim losses as it reported a sharp drop in sales. Sales fell to £1.8m for the six month ending 31 July 2009 from £2.6m a year earlier as its main businesses battled against the pressures of the recession. Pre-tax losses were narrowed to £90,000 from £271,000 before as the group brought in further cost cutting. Vitesse Media said its online advertising business, which now makes up 35% of total revenue, delivered a strong performance in the half. However sales at its print titles fell 44% as it operated in a 'very difficult climate.' Events activity also came under pressure and Vitesse said it doesn't expect a recovery in events sales until next year. Looking ahead the group commented, "While we have experienced revenue falls during the last 18 months to two years, the management team has taken the opportunity to streamline the product range and restructure the business." "The management view is that much of the revenue will return as the economy improves (although the timescale is uncertain) and with our lower cost structure shareholders should be able to see appreciation in the value of their business. The management continue to focus on strengthening brands and diversifying away from pure print revenues," the group added.