The Future Network plc
Annual Report 2003 Future Network USA"
Future Media Italy"
Future France"
UK – Future Publishing" Our Portfolio
at December 2003 Web networks"
UK – FXM International" Contents
01 Highlights
02 The Future Network at a glance
04 Chairman’ s statement
06 Chief Executive’ s review
10 Operating and financial review
27 Board of Directors
28 Directors’ report
33 Directors’ remuneration report
40 Corporate governance report
44 Independent auditors’ report
45 Financial statements
76 Notice of Annual General Meeting
80 2004 timetable
Definitions
* Adjusted results are presented to provide a better indication of overall financial 
performance and to reflect how the business is run on a day-to-day basis. 
The only adjustments made are to remove goodwill amortisation and other operating income. 
ABC: Audit Bureau of Circulations
The Future Network
is all about innovation.
We publish high-quality,
special-interest
consumer magazines
forpeoplewithapassion. 1 The Future Network plc Annual Report 2003
2003
£125.5m
Circulation revenue 
up 12%
2002
£111.9m
2003
£53.0m
Advertising revenue 
up 9%
2002
£48.6m
2003
4.9 pence
Adjusted earnings
per share up 11%
2002
4.4 pence
2003
£22.5m
Adjusted operating profit
up 24%
2002
£18.2m
Financial highlights
Adjusted results
*
– T urnover £182.7m (2002: £165.3m) Up 11%
– Adjusted operating profit £22.5m (2002: £18.2m) Up 24%
– Adjusted pre-tax profit £22.7m (2002: £18.8m) Up 21% 
– Adjusted earnings per share 4.9 pence (2002: 4.4 pence) Up 11%
– First dividend of 1.25 pence per share New
– Net cash balances of £13.4m (2002: £16.8m) Strong balance sheet
Statutory results
– T urnover £182.7m (2002: £165.3m) Up 11%
– Operating profit £9.5m (2002: £10.1m) Down 6%
– Pre-tax profit £9.7m (2002: £10.7m) Down 9%
– Earnings per share 0.8 pence (2002: 1.9 pence) Down 58%
– First dividend of 1.25 pence per share New
– Net cash balances of £13.4m (2002: £16.8m) Strong balance sheet
Other highlights
– Circulation revenue up 12%, advertising up 9% Overall double-digit growth
– Games, good; computing, difficult; entertainment, strong Profitable portfolio
– UK business solid, US very strong, Europe better Improved in each country
– 23 new magazines, 15 launches, 8 acquired Expansion continues
– Strong performance in second half year Confirms seasonal trend
– Proposed change of financial year end to 30 September Better for managing
business 2 The Future Network plc Annual Report 2003
The Future Network at a glance
98
magazines
4
countries
1,033
employees
32
games titles
37
computing titles
29
entertainment titles
Future Network 
companies in
UK
USA
France
Italy
Licensing: 
local editions 
produced by our
publishing partners
in 32 countries
Australia
Brazil
China
Croatia
Czech Republic
Denmark
Germany
Greece
Hong Kong
Hungary
Indonesia
Israel
Italy
Korea
Malaysia
Mexico
Netherlands
Norway
Philippines
Poland
Portugal
Romania
Russia
Serbia & 
Montenegro
Singapore
Slovenia
South Africa
Spain
Sweden
Taiwan
Thailand
Ukraine
Top 10 most 
licensed titles
T3
Digital Camera
PC Gamer
Computer Arts
Digital Home
Official PlayStation 2 
Magazine
Official Xbox Magazine
PC Format
PSM2
Total Film
Export
Magazines 
exported 
to 72 countries
T otal number 
of magazines 
sold by export 
in 2003: 3.1m
The Future Network
Exported titles
Licensed titles
Exported and licensed titles
June 1985 Future Publishing is founded with 
its first magazine Amstrad Action.
1987 PC Plus is the first British magazine 
to mount a computer diskette onto its cover
every month. 
1989 Future becomes Britain’ s leading
publisher of newsstand computer magazines 
by the end of the year. 
1991 Future launches seven magazines 
and acquires Mountain Biking UK.
1993 Future buys US company GP Publications
(later Imagine Media, now Future Network USA). 
1994 Future is sold to Pearson New
Entertainment. As part of the agreement 
GP Publications reverts to a private company;
it is renamed Imagine Media. 
1995 Future is awarded the licence by 
Sony Computer Entertainment UK to publish 
the Official UK PlayStation Magazine.
1996 Pearson New Entertainment 
acquires Paris-based magazine publisher,
Edicorp Publications (now Future France). 
1996 Future acquires Music Maker 
Publications in the UK. 
1998 Pearson completes the sale of Future
Publishing and Edicorp to a company buyout
backed by venture capitalists Apax Partners.
Greg Ingham is appointed Chief Executive. 
1999 Future buys the Italian market-leading
publisher of games magazines, Il Mio Castello
Editore (now Future Media Italy). 
1999 Future acquires Imagine Media,
(now Future Network USA) the publisher of
games and computing magazines and new
economy title Business 2.0.
June 1999 Future floats on the London Stock
Exchange. The new plc is called The Future
Network plc (symbol: FNET).
2000 Future’ s UK business is awarded the
licence by Sony Computer Entertainment UK 
to publish the Official PlayStation 2 Magazine.
2000 Future’ s US business wins the exclusive
international Microsoft Xbox magazine licence.
It covers all territories worldwide except Japan. 
February 2001 Following a strategic review 
of the worldwide business Future announces
measures which are designed to streamline 
the Group’ s portfolio, reduce operating 
costs and pay down debt. 
July 2001 Business 2.0 magazine is sold 
to AOL Time Warner for £47m. 
September 2001 Future announces a proposed
refinancing of the Company through a six for five
Rights Issue. 
October 2001 Future’ s US subsidiary
launches the American version of the Official
Xbox Magazine.
November 2001 The Rights Issue raises
£33.5m.
January 2002 FXM International is established
to focus on the development of Future’ s Xbox
magazines outside the US.
May 2002 Bank debt repaid.
October 2002 Future wins the contract from
Microsoft to publish the French edition of 
the Official Microsoft Windows XP magazine. 
Future already holds the UK licence for this
home computing title.
March 2003 Future agrees to buy four titles 
in France from Hachette and also appoints 
John Mellon and Lisa Gordon as independent
non-executive Directors. 
August 2003 Future Network USA announces
the launch of Mobile PC magazine, to go on 
sale in January 2004. In the UK Future launches
Laptop Magazine.
September 2003 In the US Future acquires
sector leading guitar magazine Guitar World
and related titles.
October 2003 Future makes a second US guitar
acquisition. It buys Guitar One from Cherry Lane
Magazines LLC. The same month sees Future
announce that it is acquiring Computec Media
UK Limited.
Our History 3 The Future Network plc Annual Report 2003
UK – Future Publishing
Robert Price
Managing Director
USA – Future Network USA
Jonathan Simpson-Bint
President
France – Future France
Sari Zaimi
Managing Director
Italy – Future Media Italy
Bernardo Notarangelo
Managing Director
2.06m
magazines sold each month (average)
61 monthly magazines (at 31 Dec)
625 people
Best-selling titles
1. Official PlayStation 2 Magazine – 
launched 2000
2. Total Film – launched 1997
3. Official Xbox Magazine* – 
launched 2002
4. Cross Stitcher – launched 1992
5. Redline – launched 1998
6. Microsoft Windows XP: The Official 
Magazine – launched 2002
7. PSW PlayStation World* – 
acquired 2003
8. PC Gamer – launched 1993
9. PC Plus – launched 1986
10. GamesMaster – launched 1993
New monthly titles 
and acquisitions in 2003
Bang
Digital Camera Shopper
Digital Focus Guides
Digital Home
Digital Photography Techniques
Laptop Magazine
Masterclass Series
PSW PlayStation World*
What Guitar
Windows XP Answers
Xbox World
Your Family Tree
* published by FXM International
2.30m
magazines sold each month (average)
7 monthly magazines (at 31 Dec)
150 people
Best-selling titles
1. Official Xbox Magazine – 
launched 2001
2. PSM – launched 1997
3. PC Gamer – launched 1995
4. Maximum PC – launched 1996
5. Guitar World – acquired 2003
6. Mobile PC – launched 2004
7. MacAddict – launched 1996
8. Guitar One – acquired 2003
New monthly titles 
and acquisitions in 2003
Guitar World
Guitar One
0.79m
magazines sold each month (average)
17 monthly magazines (at 31 Dec)
178 people
Best-selling titles
1. PlayStation 2, Le Magazine Officiel – 
acquired 2003
2. Windows News – launched 1993
3. Joystick – acquired 2003
4. Jeux Video Magazine – 
launched 2000
5. PC Achat – launched 1996
6. PC Jeux – launched 1997
7. Microsoft Windows XP: Le Magazine 
Officiel – launched 2002
8. Nintendo Le Magazine Officiel – 
launched 2002
9. Joypad – acquired 2003
10. Xbox, Le Magazine Officiel – 
launched 2002
New monthly titles 
and acquisitions in 2003
Digital Photo Magazine
DVD Magazine
Joypad 
Joystick
Kid Paddle
PlayStation 2, Le Magazine Officiel 
0.29m
magazines sold each month (average)
13 monthly magazines (at 31 Dec)
80 people
Best-selling titles
1. Giochi per il Mio Computer – 
launched 1997
2. Computer Magazine – 
launched 1997
3. Il Mio Computer – launched 1996
4. PSM – launched 2001
5. Linux Pro – launched 2003
6. Xbox Magazine Ufficiale – 
launched 2002
7. Digital Camera Magazine – 
launched 2003
8. Play Nation Magazine – 
launched 2002
9. Portatile & Wireless – 
launched 1998
10. Nintendo – La Rivista Ufficiale – 
launched 2002
New monthly titles 
and acquisitions in 2003
Digital Camera Magazine
Linux Pro
Videogiochi
UK – Volume of magazines sold by:
Newsstand 87% 
Subscriptions 13%
USA – Volume of magazines sold by:
Newsstand 29% 
Subscriptions 71%
France – Volume of magazines sold by:
Newsstand 82% 
Subscriptions 18%
Italy – Volume of magazines sold by:
Newsstand 97% 
Subscriptions 3% 4 The Future Network plc Annual Report 2003
“I am delighted to report on a successful year with
double-digit percentage growth in turnover, adjusted
operating profits and adjusted earnings per share.”
Roger Parry, Chairman
Summary 
I am delighted to report on a successful year with
double-digit percentage growth in turnover, adjusted
operating profits and adjusted earnings per share. 
The Future Network has grown by both launch and
acquisition; and the Company is announcing its 
first dividend.
The strength of The Future Network is the focused
effort and dedication of our staff. Their enthusiasm
and talent continues to underpin the success 
and popularity of our magazines. We now have 
more than one thousand people, producing 
98 monthly magazines.
Financial results for 2003 compared with 2002
Group turnover rose by 11% to £182.7m; adjusted
operating profit rose by 24% to £22.5m; and adjusted
earnings per share rose 11% to 4.9 pence per share. 
The Future Network has again been strongly 
cash generative and ended the year with net cash 
of £13.4m. This is despite spending £18.4m 
on acquisition activity – the benefit of which starts 
to become more evident in 2004.
Against this strong financial background the Board
recommends a first dividend, amounting to 1.25
pence per share for the full year 2003. It is also the
current intention of the Board to recommend a final-
only dividend of 1.25 pence per share for the
nine months to 30 September 2004, in the absence
of exceptional circumstances and following our
proposed change of year end which I explain later.
Business growth
Over the last two years, we have significantly
expanded our business. Since the beginning of 2002,
we have launched 28 monthly magazines, acquired 
a further eight, and closed or sold a total of 14. This
brings our portfolio of monthly special-interest
consumer magazines to a total of 98 at the end of
2003. From this broader base of games, computing
and entertainment titles, we have been able to drive
profitability further.
It is pleasing that progress has been made in each of
The Future Network’ s four countries, most notably in
the US in 2003.
In seeking to develop the business further , the Board
has spent time reviewing strategic priorities and the
Chief Executive’ s Review on page 8 summarises our
growth strategy. 
Chairman’ s statement
The Future Network has grown
by both launch and acquisition;
and the Company is announcing
its first dividend. 5 The Future Network plc Annual Report 2003
Board and corporate governance
On 12 March 2003 John Mellon and Lisa Gordon
joined the Board as independent non-executive
Directors, bringing the number of independent 
non-executive Directors to five. John has had a
successful business career in magazine publishing,
including as Chairman of IPC Magazines. 
Lisa was the Corporate Development Director 
of Chrysalis Group for eight years.
With effect from 16 September 2003, Colin Morrison,
who was Chief Operating Officer , resigned as a Director
of the Company and subsequently left the Group 
on 31 December 2003. Colin joined the Company in
January 2001 as Chief Operating Officer and also 
filled the position of UK Managing Director from July
2001. The role of Chief Operating Officer has now
ceased. The Board is grateful to Colin and wishes him
the very best for his next challenge.
We continue to note corporate governance
developments. An important aspect of this is the
composition of the Board and I believe that The Future
Network has a good balance between executive 
and non-executive Directors, and that our Board is
effective. I welcome observations from shareholders
on any aspect of governance.
Annual General Meeting 2004
Our 2004 Annual General Meeting will be held on
Thursday 13 May in Bath and the business for 
that meeting will include 11 resolutions. I should like
to highlight two significant new proposals. 
Having paved the way last year to enable the 
payment of dividends, and with the strong financial
performance for 2003 summarised opposite, the 
Board has recommended a first dividend, amounting 
to 1.25 pence per share for the full year 2003. The
payment of this dividend is subject to shareholder
approval at the Annual General Meeting. 
The Board also proposes to change the financial 
year end of the Group from 31 December to 
30 September . The October to December period
generates a significant proportion of revenues 
and profits and makes forecasting performance 
during the year a challenge. Changing the year end 
will facilitate the management of the business 
and build in more certainty in predicting outcomes. 
It is pleasing that
progress has been made
in each of The Future
Network’ s four countries
in 2003.
It is also notable that within this busiest trading
quarter the business prepares detailed operating
budgets for the ensuing financial year; reviews
staff salaries; and monitors closely the financial
implications of any deviation from budget arising in 
the last quarter of the financial year . 
By changing the financial year end to 30 September ,
we believe that we will achieve a more balanced and
effective management of the business internally,
whilst also providing a better framework for managing
the business as a public company.
The Board therefore proposes to shorten the current
financial reporting period by three months, so that 
the Company’ s next audited results would be for the
nine months to 30 September 2004.
The proposed change of financial year end is not a
matter which requires the approval of shareholders.
However , consistent with our views on aspiring to best
practice in corporate governance, we have decided 
to invite shareholders to vote in favour of this change
at the 2004 Annual General Meeting.
Current trading and prospects
Current trading for January 2004 has been in line 
with internal expectations and we regard our trading
prospects positively.
The Future Network is an international business which
has traded well in 2003. It is growing, and is in a 
strong position in the field of special-interest consumer
magazine publishers. We have valuable consumer
properties managed by a talented and motivated team.
I am optimistic that our shareholders’ confidence 
in The Future Network will continue to prove justified in
the years to come.
Roger Parry
Chairman
10 March 2004 6 The Future Network plc Annual Report 2003
“I would like to thank the many creative and
commercial people we employ, who together
are responsible for the very good progress
we have made in 2003.”
Greg Ingham, Chief Executive
Chief Executive’ s review
In a market place where readers
are ever more demanding,
The Future Network is
recognised for the excellence 
of its magazines.
Turnover by sector 2003
Now published in 17 different countries (outside the UK)
T3 T omorrow’s T echnology T oday is a truly international magazine
and Future’ s most licensed title.
In November 2003, Future acquired the UK trading subsidiary 
of Computec Media AG. The principal magazines acquired 
were PSW and Xbox World and these are now published 
by Future in the UK.
Future Network USA’ s computing title Maximum PC enjoyed 
a 19% increase in advertising revenue in 2003.
Games 46%
Entertainment 22%
Computing 32%
Turnover by sector 2002
Games 45%
Entertainment 22%
Computing 33% 7 The Future Network plc Annual Report 2003
Special-interest consumer magazine publisher
The Future Network’ s publishing philosophy is based
on providing quality editorial products that are defined
by the depth of understanding of special-interest 
areas that meet the needs of defined groups of
readers. The magazines are characterised by editorial
authority, quality of content and high value. In a market
place where readers are ever more demanding,
The Future Network is recognised for the excellence 
of its magazines.
Our business model is typically based on premium
price, premium quality. And when the highest-priced is
also the biggest-selling, then there is an even more
attractive business opportunity. In turn, this creates an
appealing audience for advertisers: sector-leading
volumes of readers who have demonstrated their depth
of interest via purchasing high cover-price magazines.
Additionally, the scale of our magazines can also be
attractive for non-endemic advertisers.
And specialist is not a proxy for small. Our Official
PlayStation 2 Magazine in the UK is the ninth highest
ranking of all UK monthly magazines in terms of
consumer spend.
Games
We continued to drive our long-term success 
in the games sector in 2003. As signalled a year 
ago, the sector now accounts for 46% of Group 
revenues and 45% of Group profit (as measured 
by gross contribution). 
The Future Network is the worldwide leader in games
magazines, with 2003 revenues of £85m (2002:
£76m). Our largest-selling magazine is now the US
Official Xbox Magazine, with current monthly sales of
403,000, and we now publish editions of the Official
Xbox Magazine in five countries with licensed editions
in a further four . Our largest-selling UK magazine is
Official PlayStation 2 Magazine which sold a monthly
average of 188,000 copies in 2003, and we also
publish the Official PlayStation 2 Magazine in France. 
Overview
2003 was another successful year for The Future
Network. In this report I highlight several important
matters in addition to those set out in our operating
and financial review. I also provide an update on our
corporate strategy.
Management of the Group 
I am proud to have led the Group through a successful
year . I should like to start by recording my thanks to the
many creative and commercial people we employ, who
together are responsible for the very good progress we
have made in 2003.
Last year I outlined our ambition to launch new titles 
in 2003 and to make further acquisitions. In both
cases we have made real progress. We have expanded
our portfolio by doing both: launching in each of 
our four countries, and acquiring in the UK, the US 
and in France.
I am particularly pleased with the progress made
overseas, led by our country Managing Directors. In
the US, Jonathan Simpson-Bint has done a remarkable
job in leading strong growth in circulation, revenues
and profits. This underpinned our confidence to invest
in the acquisition of sector-leading guitar magazines 
in New Y ork in the autumn. 
Sari Zaimi has worked hard to ensure both operational
improvements in our French business as well as
effective integration of the titles we acquired last year
from Hachette. Our Italian business is now in a 
robust state under the strong leadership of Bernardo
Notarangelo. As a result of progress in both countries,
in terms of adjusted operating profit our Mainland
European businesses are now once more profitable.
Since September I have been acting Managing
Director of the UK business. Our UK results show a
business with very good margins – amongst 
the best in our industry. From here, our task is to
stimulate further growth in what has been our
strongest business.
It is interesting to note that The Future Network’ s
combined international sales – owned businesses,
licences and exports – exceed those in the UK,
further underpinning the improved quality of the
Group’ s earnings.
“Ever wake up dreading going to work? I don’t! As an
artist and a game lover what more could I possibly 
ask for than being the Art Director of my favorite game
console magazine at one of the best companies I’ll
ever work for ...not much. ”
Juliann Brown, Art Director , Official Xbox Magazine,
Future Network USA. 8 The Future Network plc Annual Report 2003
Computing
Computing titles provided 32% of our 2003 magazine
revenues. The Future Network is a significant publisher
of computing magazines in its four territories, with
2003 revenues of £58m (2002: £54m).
Once again we have increased our total computing
revenues, despite difficult market conditions. Our
teams, who are highly focused, have found smart ways
to develop new business and it is pleasing that some 
of our newer digital titles have grown strongly. There
are some signs that technology markets are finally
beginning to pick up again, particularly in the US, which
should prove beneficial to a company with a strong
technology element such as The Future Network.
Although it is very early days, we are pleased 
with the recent launch in the US of Mobile PC, our 
first significant launch in the US for two years. 
Entertainment
The Future Network’ s UK entertainment portfolio
comprises a number of separate special-interest
magazines, ranging from music-making to film 
and mountain-biking, from stitching to technology and
modified cars. T ogether with our recently acquired
guitar titles in the US, they provide us with a diversified
magazine portfolio. In 2003 our entertainment titles
performed strongly overall and we intend to expand
further in these areas, building on our long-term
success in these special-interest areas of the market.
The Future Network has been sector leader in guitar
magazines for almost a decade in the UK. We have
achieved growth once more this year , and this durable
success in a familiar special-interest area encouraged
us to enter the US guitar market in 2003. In two
separate deals last autumn, we bought the number
one and number three best-selling magazines for 
a combined £11.5m, to become worldwide leaders of
an attractive sector . 
UK magazine distribution
The UK’ s largest magazine distributor , Marketforce,
will be distributing our magazines with effect from 
May 2004. We are pleased with this appointment 
and believe that having the benefit of their scale and
experience will help our UK business.
Corporate strategy
The Board seeks to enhance shareholder value 
by maintaining our pace of growth, which has seen
substantial growth in Group value since 2001. 
T o this end, we have a clear strategy:
• T o exploit the significant growth opportunities in 
our core area of expertise – special-interest
consumer magazines
• T o focus new investment on the UK and 
US businesses
• Further to increase the diversity of our magazine
portfolio, thereby reducing our dependence on any
single sector
• T o use the Group’ s strong balance sheet and 
cash generative qualities to pursue acquisitions
• T o build on our established track record of
launching new titles.
We have been focused in 2003 on seeking to improve
the business in every area. We have continued to 
make significant progress, which has been beneficial
to shareholders and to Future people alike. We look
forward with confidence. 
Greg Ingham
Chief Executive
10 March 2004
Chief Executive’ s 
review continued
“MP3, Divx, home cinéma, l’informatique bouge 
très vite. Un monde passionnant, toujours nouveau,
toujours surprenant. J’ai la chance de pratiquer 
un métier qui me permet de partager mes
découvertes et ma passion.”
Benoît Henri, Features Editor , PC Achat,
Future France. 9 The Future Network plc Annual Report 2003
Launches and
acquisitions in 2003
Magazines launched during 2003
Country Title
UK Digital Camera Shopper
UK Digital Focus Guides
UK Digital Home
UK Digital Photography T echniques
UK Laptop Magazine
UK Masterclass series
UK Windows XP Answers
UK Your Family Tree
UK Bang
UK What Guitar
France Digital Photo Magazine
France Kid Paddle
Italy Videogiochi
Italy Digital Camera Magazine
Italy Linux Pro
Magazines acquired during 2003
Country Title
UK PSW
UK Xbox World
US Guitar One
US Guitar World
France DVD Magazine
France Joypad
France Joystick
France PlayStation 2,
Le Magazine Officiel 10 The Future Network plc Annual Report 2003
Future has had long-term success in a variety of entertainment
sectors. In 2003 our entertainment titles performed strongly
overall and we intend to expand further in these areas. 
In the UK Total Film continued its impressive growth record 
with a 13th successive circulation rise, a year-on-year increase 
of 5.4% to 90,580. All Future’ s guitar titles increased with 
Total Guitar up 12.1% year on year while modified car magazine
Redline was up 9.8% year on year at 72,106.
“We have achieved greater profitability through
increased sales, improved margins, an expanded
portfolio and bolt-on acquisitions funded from
surplus cash.”
John Bowman, Group Finance Director
Operating and financial review
With significant growth in 
adjusted earnings per share and 
a strong balance sheet, this 
is the right time for us to start
paying dividends.  11 The Future Network plc Annual Report 2003
Magazine portfolio
By the end of the year , the Group
published 98 special-interest consumer
magazines in four countries as 
shown in figure 2. These can be further
analysed by sector: see figure 3.
During the year 15 titles were launched
and eight were acquired. The amount
spent on magazine launches was £2.0m
(as measured by losses at the gross
contribution level), which is within the
estimate provided by management in
September . The net cash consideration
paid for magazine acquisitions
amounted to £18.4m. Magazine launch
activity is discussed below and
magazine acquisitions are discussed
later in this report.
£1.3m was spent on magazine launch
activity in the UK and Mainland Europe.
T en magazine titles were launched 
in the UK. The most expensive of these
launches was Bang, an alternative
music magazine, which did not achieve
the required volume of sales to justify
continued publication. Accordingly,
this magazine was closed in December
2003. The financial performance of
magazine launches in France and Italy
was satisfactory.
In the US, £0.7m was spent on the 
set-up costs of Mobile PC, which 
went on sale in January 2004. All staff,
promotional and other expenses
relating to this title incurred during
2003 were expensed against 2003 
US profits.
During the last two years, the Group has
launched a total of 28 magazines 
and acquired a further eight. Magazines
closed or sold in the same period
number 14. This represents net
expansion of 22 magazines, and the
Group plans to expand further in 2004. 
In relation to magazine launches, the
Group anticipates a similar level of
financial commitment to that incurred 
in 2003 (£2.0m of net losses as
measured at the gross contribution
level). This level of investment in the
development of the Group’ s portfolio
can readily be funded from the Group’ s
cash resources.
New in 2003
– Double-digit percentage growth 
in adjusted earnings per share
– First dividend 
Purpose of review
This review explains the financial 
results for 2003. It is also intended 
to help readers to assess the future
performance of the Group by setting out
the Directors’ analysis of the business.
Accordingly, I comment on business
trends evident in 2003; on accounting
policies that have required the exercise
of judgement in their application, and 
to which the results are most sensitive;
and on the measures used by the
Directors as key performance indicators
in managing the business. 
As last year , this review focuses on
adjusted figures which are presented 
to provide a better indication of overall
financial performance and to reflect how
the business is managed on a day-to-
day basis. The only adjustments made
are to remove goodwill amortisation and
other operating income. 
Looking forward, I also comment 
on our aspirations to achieve further
growth in earnings, our dividend policy,
the planned change of financial year
end in 2004, and the likely impact 
of International Financial Reporting
Standards in 2005/2006. 
Structure and size of the Group
By the end of 2003, the Group published
98 special-interest consumer magazines
and operated subsidiary companies 
in the UK and three overseas countries:
the US, France and Italy. In addition,
the Group licensed local editions of its
magazines in a further 31 countries.
The Group’ s progress in comparison
with 2002 can be seen in figure 1.
Figure 1. Structure and size of the Group
2003 2002 Change
Total turnover £182.7m £165.3m Up 11%
Magazines 98 82 See table below
Overseas subsidiaries 3 3 No change
Year end headcount 1,033 934 Up 11%
Acquisition spend £18.4m £0.1m Four in 2003
Net cash £13.4m £16.8m Net outflow of £3.4m 
Figure 2. Magazine portfolio analysed by territory
At 1 Launches/ Disposals/ At 31
Monthly titles January acquisitions closures December
UK 54 12 (5) 61
US 5 2 – 7
France 13 6 (2) 17
Italy 10 3 – 13
Total 82 23 (7) 98
Figure 3. Magazine portfolio analysed by sector
Monthly titles Games Computing Entertainment Total
UK 15 21 25 61
US 3227
France 8 7 2 17
Italy 6 7 – 13
Total 32 37 29 98
“After thinking I was wasting time playing my 
PlayStation 2 instead of studying at university, I got 
a job getting paid for it! Of course the writing is 
important too … I can’t think of anything better than 
writing about what interests you.”
Ben Richardson, Staff Writer ,
Official PlayStation 2 Magazine, Future Publishing. #Some of Future’s newer UK digital titles showed double-digit 
growth in 2003. Microsoft Windows XP: The Official Magazine (left)
was up 34.6% at 67,767 copies sold per month, Digital Camera
Magazine was up 14.4% to 33,221 and Linux Format increased
11.5% to 26,044.
#In the computing sector our teams have found smart ways 
to develop new business. We are pleased with the important
January 2004 launch in the US of Mobile PC, developed to reflect
the growth in mobile technology and our first significant launch 
in the US for two years. It’ s very early days but we’ve made good
progress so far.
$Future is the worldwide leader in games magazines. Our largest-
selling magazine is now the US Official Xbox Magazine with 
current monthly sales of 403,000. We now publish editions 
of the Official Xbox Magazine in five countries with licensed 
editions in a further four.
"Improvement and growth in our French business – Future France.
The integration of the four magazines – PlayStation 2, Le 
Magazine Officiel, Joypad, Joystick and DVD Magazine – acquired
from Hachette in France last year has been successful.
$Future entered the US guitar market in 2003. Future has been
sector leader in guitar magazines for almost a decade in the UK.
This durable success encouraged us to enter the US guitar market
and in two separate deals we bought the number one and number
three best-selling guitar magazines to become worldwide leaders of
this attractive sector. Shown here are members of Future’ s new
New York-based guitar editorial teams. GROWING
Building our portfolio through launching, acquiring and improving sector share. 14 The Future Network plc Annual Report 2003
There are however several areas 
within the 2003 Group accounts which
required the exercise of judgement 
by management, notably the areas 
of revenue recognition, bad debt
provisions and provisions in respect of
onerous property leases which have
reduced during the year .
Revenue recognition 
As in previous years, circulation and
advertising revenue relating to 
a magazine is recognised with effect 
from the date the issue goes on 
sale. For example, the results for each
year include revenue relating to
magazines which went on sale during
December , but which did not come 
off sale until during January. Because
magazines are distributed to retail
outlets on a sale-or-return basis, an
estimate is made of expected sales;
this is later corrected to actual sales
when these are known. 
Appropriate adjustments were made 
to the results for 2003 (and for each
previous year) in order to update initial
estimates to reflect the latest available
returns information. 
Review of the Group profit 
and loss account
Group turnover
Group turnover for the year was
£182.7m, an increase of 11% on 2002
(see figure 4). In 2003 turnover of
£7.8m was generated from acquisitions
made during the year whilst the
increase in turnover from continuing
operations was £9.6m or 6%. 
All turnover was derived from the
Group’ s principal activity, of publishing
special-interest consumer magazines
serving the games, computing and 
a number of entertainment sectors.
Analyses of turnover by territory,
type, sector and half year are shown
opposite in figures 5 to 9.
Key performance indicators used 
by management
The Directors monitor the Group’ s
progress by reference to circulation and
advertising revenue by territory, by 
type and by sector. For management
accounts purposes, each magazine 
has its own profit and loss account,
detailing magazine revenues and (after
deducting direct magazine-related
costs) the resulting gross contribution.
Any magazine which produces a
negative gross contribution is
considered carefully, to ensure that such
a result is justified in business terms: 
for example, that early losses following 
a magazine launch are running within
acceptable parameters. 
Overheads are reviewed as a block of
expenditure on a country-by-country
basis. Gross contribution less overheads
(excluding goodwill amortisation) results
in adjusted operating profit, which 
the Directors regard as the single most
important performance measure in
assessing the Group’ s profitability at 
the operating level.
In addition, the Directors monitor
central costs, financial commitments,
the management of treasury risk and
taxation liabilities. 
The Board’ s overall aim is to achieve
growth in adjusted earnings per share.
Accounting policies 
The Group’ s accounting policies are
explained on pages 52 and 53 and
remained unchanged compared with 
the previous year. Accordingly, no
accounting policy changes had any
impact on the measurement of the
Group’ s pre-tax profits for 2003. 
Operating and 
financial review
continued
“As a former bike shop manager and mechanic, being
able to go into work every day to ride all the latest bikes
and tinker with new parts all day is a dream come true.
When you tell people that you get paid to write about
and ride bikes all day, most don’t believe you; show
them the four test bikes you currently get to play with
and most wonder why they do their boring 9 to 5. 
I couldn’t ask for more ...”
Finlay Paton, Reviews Editor , Mountain Biking UK,
Future Publishing. 15 The Future Network plc Annual Report 2003
Figure 5. Group turnover by territory
2003 2002 Change
%£m %£m %
UK 54% 100.3 58% 97.1 Up 3%
US 25% 46.2 24% 40.5 Up 14%
Mainland Europe 21% 38.6 18% 29.5 Up 31%
Intra-group – (2.4) – (1.8) –
Group turnover 100% 182.7 100% 165.3 Up 11%
Figure 6. Group turnover in constant currencies
2003 2002 Change
%£m %£m %
UK 54% 100.3 58% 97.1 Up 3%
US 27% 50.2 24% 40.5 Up 24%
Mainland Europe 19% 35.1 18% 29.5 Up 19%
Intra-group – (2.4) – (1.8) –
Group turnover 100% 183.2 100% 165.3 Up 11%
Figure 7. Group turnover by type
2003 2002 Change
%£m %£m %
Circulation 69% 125.5 68% 111.9 Up 12%
Advertising 29% 53.0 29% 48.6 Up 9%
Other 2% 4.2 3% 4.8 Down 13%
Group turnover 100% 182.7 100% 165.3 Up 11%
Figure 4. Group turnover 
2003 2002 Change
% £m £m %
Continuing operations 96% 174.9 165.3 Up 6%
Acquisitions 4% 7.8 ––
Group turnover 100% 182.7 165.3 Up 11% 
Figure 8. Group turnover by sector
2003 2002 Change
%£m %£m %
Games 46% 85.4 45% 76.3 Up 12%
Computing 32% 58.4 33% 54.4 Up 7%
Entertainment 22% 41.3 22% 36.4 Up 13%
Intra-group – (2.4) – (1.8) –
Group turnover 100% 182.7 100% 165.3 Up 11%
Figure 9. Group turnover by half year
2003 2002 Change
%£m %£m %
First half 44% 80.6 45% 74.0 Up 9%
Second half 56% 102.1 55% 91.3 Up 12%
Group turnover 100% 182.7 100% 165.3 Up 11%
UK 54%
Mainland 21%
Europe
US 25%
Turnover by territory 2003
UK 58%
Mainland 18%
Europe
US 24%
Turnover by territory 2002
Circulation 69%
Advertising 29%
Other 2%
Turnover by type 2003
Circulation 68%
Advertising 29%
Other 3%
Turnover by type 2002
Games 46%
Entertainment 22%
Computing 32%
Turnover by sector 2003
Games 45%
Entertainment 22%
Computing 33%
Turnover by sector 2002
First half 44%
Second half 56%
Turnover by half year 2003
First half 45%
Second half 55%
Turnover by half year 2002
UK 54%
Mainland 19%
Europe
US 27%
Turnover in constant currencies 2003
UK 58%
Mainland 18%
Europe
US 24%
Turnover in constant currencies 2002 $International licensing increased significantly during the year.
Over 100 international editions of Future’ s magazines are
produced by our international publishing partners in 32 countries
in addition to those published by Group companies. One of 
those is the Chinese edition of United: The Official Manchester
United Magazine which is published under licence in China,
Hong Kong and Macau.
#The purchase of magazines by subscription is a strong
characteristic of the US market. The different business model 
in the US is characterised by the fact that over 70% of Future’ s
magazine sales in the US are achieved by readers subscribing 
to our magazines. 
#Export sales from the UK increased by 12% on the previous year.
UK magazines are exported to 72 countries, the largest of which
are the US and Australia.
%Our Mainland Europe businesses are profitable.
Strong management at Future France and Future Media Italy has
led to progress in both countries. Combined turnover from 
France and Italy was £38.6m, with 75% of revenue coming from
circulation and 24% from advertising. We are an international business with more than 50% of revenue coming from outside the UK.
INTERNATIONAL 18 The Future Network plc Annual Report 2003
Export activity
The largest export markets for Future’ s
UK magazines are the US and Australia.
We are pleased to have grown total
export sales from the UK to £10.9m, an
increase of 12% on the £9.7m in 2002.
Licensing
We also significantly increased
international licensing of Future’ s
magazine portfolio by 29% during 
the year . The UK portfolio had licence 
revenues totalling £2.4m (2002:
£1.8m) and the US portfolio had 
licence revenues of £0.3m 
(2002: £0.3m) giving a Group total 
of £2.7m (2002: £2.1m).
The Group licenses 103 editions 
of its magazines in 32 countries,
in addition to those published by Group
companies in the UK, US, France and
Italy. T3 remains the Group’ s most
licensed title, with local editions sold 
in 17 different overseas countries. 
Mainland Europe performance for year
Combined turnover from France and
Italy was £38.6m including £5.4m 
from the Hachette (HDP) titles acquired
in April 2003. Excluding these, the
increase in turnover was 13%. The
average value of the Euro against
Sterling strengthened by 9% compared
with the previous year , so that this
revenue growth in Euro terms was 2%.
For 2003, 75% of revenue came from
circulation and 24% from advertising.
Circulation revenue (excluding HDP)
grew by 13% and advertising revenue 
by 11% compared with 2002.
The adjusted operating profit of £0.7m
represents an adjusted operating profit
margin of 2% as shown in figure 13 and
is stated after (a) intra-Group licence
fees for the year of £1.8m (2002:
£1.4m) and (b) integration costs of 
HDP amounting to £0.2m.
During the year , the Group acquired 
HDP , a subsidiary company of Hachette
Filipacchi Presse S.A. for a cash
consideration of £3.5m. Prior to the
year end, the legal entity of HDP was
merged with Future France. 
The HDP titles together contributed
£5.4m of turnover and £0.2m of
adjusted operating profit. This is before
the anticipated full-year effect of cost
savings which have been targeted 
at £0.75m.
UK performance for year
Turnover for the year amounted 
to £100.3m, an increase of 3%
compared with 2002. (See figure 10).
Circulation revenue increased by 3%
compared with 2002 and advertising
revenue increased by 3% compared 
with 2002. The proportion of turnover
derived from circulation revenues
remained the same at 73% (2002: 73%).
Turnover for the computing and
entertainment sectors showed modest
year-on-year increases of 5% and 
6% respectively whilst games turnover
increased by 1% on the prior year . 
(See figure 11).
The UK adjusted operating profit 
was £17.0 m, representing an adjusted
operating profit margin of 17% 
(2002: 17%). The split of UK profits
(as measured by gross contribution)
by sector is shown in figure 12.
UK magazine portfolio
During the year , Future launched 
10 monthly magazines including What
Guitar, which has been added to 
the UK’ s already successful portfolio 
of guitar magazines; Digital Camera
Shopper, supplementing Digital Camera
Magazine which was launched in 
2002; Windows XP Answers and Laptop
Magazine and the aforementioned
Bang. The UK also launched a
successful Masterclass series of
‘bookazines’, large magazine-format
manuals sold at newsagents.
In November , Future acquired the UK
trading subsidiary of Computec 
Media AG for a cash consideration of
£3.2m and a licensing arrangement
with Computec Media in Germany. 
The principal magazines acquired were
PSW and Xbox World and these are 
now published by Future in the UK.
In February 2004 Future published the
latest ABC audited circulation figures
covering 48 titles in its UK portfolio of 61
monthly magazines. Average monthly
sales in the UK for the audited titles
were slightly up at 1, 787 ,825 copies. 
The UK trends for Future’ s portfolio were 
(i) growth in entertainment; (ii) enhanced
position within games; (iii) respectable
performance for computing titles in
difficult market conditions.
The UK performance overall was
satisfactory, and we have expanded the
UK magazine portfolio by both launches
and acquisitions. 
Operating and 
financial review
continued
“After picking up a copy of Edge magazine seven 
years ago, I decided I wanted to work for Future as 
I liked their style. I’ve been here ever since and 
have enjoyed my time on Edge, MacFormat and now
Digital Camera Magazine”
Rob Bowen, Art Editor , Digital Camera Magazine,
Future Publishing. 19 The Future Network plc Annual Report 2003
Figure 10. UK performance for year
Margin 2003 Margin 2002 Change 
%£m %£m %
Turnover 100.3 97.1 Up 3%
Direct costs (60.5) (57.2)
Gross profit 40% 39.8 41% 39.9
Distribution costs (6.0) (5.3)
Gross contribution 34% 33.8 36% 34.6
Overheads (16.8) (17.9)
Adjusted 
operating profit 17% 17.0 17% 16.7 Up 2%
Figure 11. UK revenue by sector
2003 2002
Games 33% 34%
Computing 30% 29%
Entertainment 37% 37%
Figure 12. UK gross contribution by sector
2003 2002
% %
Games 33% 32%
Computing 31% 32%
Entertainment 36% 36%
Figure 14. US performance for year
2003 2002 Change
£m £m %
Turnover 46.2 40.5 14%
Adjusted operating profit 7.5 4.6 63%
Margin 16% 11% –
Circulation 49%
Advertising 48%
Other 3% 
US revenue by type 2002
Circulation 75%
Advertising 24%
Other 1% 
Mainland Europe revenue by type 2003
Circulation 74%
Advertising 26%
Mainland Europe revenue by type 2002
Circulation 51%
Advertising 46%
Other 3%
US revenue by type 2003
Figure 13. Mainland Europe performance for year
2003 2002 Change
£m £m %
Turnover 38.6 29.5 31%
Adjusted operating profit 0.7 ––
Margin 2% ––
Games 33%
Entertainment 37%
Computing 30%
UK revenue by sector 2003
Games 34%
Entertainment 37%
Computing 29%
UK revenue by sector 2002
Games 33% 
Computing 31%
Entertainment 36%
UK gross contribution by sector 2003
Games 32%
Computing 32%
Entertainment 36%
UK gross contribution by sector 2002 "Everything starts with our readers and the interests that drive
their passion, a passion that we share. The many creative and
commercial people Future employs are responsible for the 
very good progress we have made in 2003. Whether brainstorming
for the next issue’ s stitching stories (right) or road testing the
latest gadgets, the enthusiasm and dedication of Future people
underpin the success and popularity of our magazines. 
"An efficient operation using high-end technology. Future in the 
UK was the first major magazine company to move to complete
digital artwork. Combined with in-house picture scanning and
quality control, this cuts out an expensive part of the external
print reproduction process. We made significant IT infrastructure
investment during 2003.
#Our magazines are characterised by editorial authority, quality 
of content and high value. Future’ s publishing philosophy is based
on providing quality editorial products that are defined by the
depth of understanding of special-interest areas that meet the
needs of defined groups of readers.
%In the UK retail newsstand sales account for 87% of our 
magazine sales by volume. From May 2004 Marketforce, the 
UK’ s largest magazine distributor, are distributing our magazines.
Having the benefit of their scale and experience will help 
our UK business.
$Our management teams are strong, with a great deal of 
valuable experience. Our UK results show a business with 
very good margins – amongst the best in our industry. 
From here, our task is to stimulate further growth in what has
been our strongest business. Pictured here are members 
of our UK management team. STRONG
Our combined knowledge, experience, enthusiasm and talent
underpin the success of our broad portfolio.  22 The Future Network plc Annual Report 2003
US performance for year
T urnover for the year amounted to
£46.2m, an increase of 14% (in Sterling
terms) compared with 2002. The
increase in turnover from continuing
operations was £3.6m or 9%. 
In September and October respectively,
Future acquired Guitar World (and
associated titles) and Guitar One
magazines for a total consideration 
of £11.5m. These magazines together
contributed £2.1m of turnover and
£0.1m of adjusted operating loss 
and gave rise to goodwill amortisation 
of £0.7m.
The average value of the Dollar against
Sterling declined by 9% compared 
with 2002, so that revenue growth in
Dollar terms was 24% overall and 
19% for continuing operations. Most 
of the increase in turnover came 
from increased circulation (up 30% in 
Dollar terms) with advertising revenue
(in Dollar terms) up 19%.
Adjusted operating profit for the year
totalled £7.5m, representing an
adjusted operating margin of 16% 
of turnover (see figure 14).
In February 2004 Future published 
the latest circulation figures for its 
US magazines. Overall, audited US
circulation increased by 23.6% year 
on year to 1,906,828 copies, including
Guitar World and Guitar One.
Future’ s US games magazine circulation
growth has been driven by a 39%
increase from Official Xbox Magazine,
which is now Future’ s largest selling
magazine of any sort at 403,222 
copies per month.
Of total US turnover , 51% came from
circulation and 46% from advertising.
Subscription revenue in the year
accounted for 21% of US turnover
(2002: 24%).
The different business model applicable
in the US is evident from the turnover
splits noted above. Unlike UK
magazines, most of which are sold 
at newsstands, over 70% of Future’ s
magazine sales in the US are achieved
by subscription. 
Magazine publishers estimate in
advance the total number of magazine
sales for a given period (known as 
the ‘rate base’) and it is on the basis 
of such estimates that advertising
bookings are sold. The most recent
circulation statistics covering the 
six months to December 2003 show
that all our titles sold at least their 
rate base numbers. This has been 
the case throughout the life of Future
Network USA. 
The US operation had a strong year 
in 2003, with revenues, profits and
margins all well beyond management
expectations. The strength of the
portfolio, the recent launch of Mobile PC
and the newly acquired guitar magazines
in New Y ork mean that the outlook 
for 2004 is promising. 
However, after such a strong year 
in 2003, the Group does not expect 
to achieve significant profit growth 
in 2004, when the loss-making phase 
of Mobile PC magazine will continue 
to impact the result. 
Operating profitability as measured 
by adjusted operating profit
Apart from launches, virtually all of the
Group’ s magazines achieved a positive
gross contribution in 2003 and
magazines acquired during the year also
recorded a positive gross contribution.
Overheads in each country remained
under control throughout the year . Splits
of gross contribution by sector and
adjusted operating profit by territory and
half year are shown in figures 15 to 17.
Adjusted operating profit achieved 
by the UK for 2003 was £17.0m and
that achieved by overseas subsidiaries
was £8.2m, giving a combined total 
of £25.2m. After deducting Group
central costs of £2.7m (2002: £3.1m),
adjusted operating profit for the year
was £22.5m (2002: £18.2m) on
turnover of £182.7m (2002: £165.3m)
representing an adjusted operating
profit margin of 12% (2002: 11%) 
on turnover .
The Group’ s aim is for an adjusted
operating profit margin of 15% in the
mid-term and the improvement achieved
in 2003 is consistent with that aim. 
Operating and 
financial review
continued
“The best part of being a musician is performing live.
I’ve been doing it every weekend for 20 years,
and the thrill and satisfaction I get from relating to 
an audience is priceless! I’ve had the great pleasure 
of interviewing and jamming with some of my musical
heroes, including John Paul Jones, David Gilmour ,
Steve Howe and Dickey Betts. My other passion is
teaching. It’ s very fulfilling to be able to inspire
students and successfully communicate elusive
artistic concepts to them.”
Jimmy Brown, Music Editor , Guitar World,
Future Network USA. 23 The Future Network plc Annual Report 2003
Other operating income
No such income arose during 2003.
During the previous year , the UK
business received £2.2m from HM
Customs & Excise in respect 
of VAT overpaid in years prior to 2001.
Most of this refund related to amounts
reclaimable following a review of the
complex rules relating to VAT applicable
to magazines featuring covermounts.
Goodwill amortisation
In respect of continuing operations,
the charge for the year was £10.4m 
(2002: £10.3m). Goodwill amortisation
charged in relation to acquisitions
totalled £2.6m and this reflects
particular amortisation periods,
which are explained overleaf (under
‘Intangible fixed assets’).
Net interest receivable and 
similar items
Net interest receivable and similar
items totalled £0.1m for the year . 
This represents bank interest receivable
of £0.6m, exchange gains of £0.1m
less other charges totalling £0.6m. 
Pre-tax profit
The Group’ s pre-tax profit of £9.7m
(2002: £10.7m) comprises pre-
amortisation profits of £22.7m (2002:
£21.0m) less goodwill amortisation 
of £13.0m (2002: £10.3m).
Tax
The tax charge for the year amounted 
to £7.0m on pre-amortisation profits 
of £22.7m, giving an effective tax rate
for the year of 31% (2002: 21%). 
The lower rate in the prior year reflected
the recognition of a deferred tax asset
in the US and certain prior year tax
credits. The current year rate of 
31% is consistent with the estimate 
provided when the Group announced 
its half year results. 
The Group’ s current estimate of the
effective tax rate likely to apply to
taxable profits for calendar year 2004 
is in the region of 30%.
Earnings per share
Basic earnings per share for the year
amounted to 0.8 pence (2002: 
1.9 pence). The reduction arises as 
a result of the increased amortisation
charge in 2003 and the fact that 
in 2002 the earnings benefited from
£2.2m of other operating income 
as discussed above. 
Adjusted basic earnings per share
reflects earnings before goodwill
amortisation and other operating
income. Adjusted basic earnings 
per share for the year amounted 
to 4.9 pence per share (2002: 4.4
pence per share), an increase of 11%.
Dividends
During 2003, we took the necessary
preparatory steps to enable the
payment of dividends. This involved the
cancellation of the Company’ s share
premium account, which was effected
on 12 June 2003 following the approval
of shareholders at the Annual General
Meeting held on 15 May 2003 
and Court approval. As a result, the
Company now has significant
distributable profits. 
In light of the strong financial
performance for the year , the Board
recommends a final dividend, payable 
in respect of the full year 2003, of 
1.25 pence per share. If approved at the
2004 Annual General Meeting to be
held on 13 May 2004, this first dividend
will be payable on 24 May 2004 
to shareholders on the register as at 
23 April 2004. 
Dividend policy and dividend cover
The Board’ s intention is that dividends
should be covered at least twice 
by adjusted earnings per share. These
amounted to 4.9 pence for 2003,
providing more than adequate cover 
for the proposed first dividend of 
1.25 pence. 
It is also the current intention of 
the Board to recommend a final-only
dividend of 1.25 pence per share 
for the nine months to 30 September
2004, in the absence of exceptional
circumstances and following our
proposed change in financial year end.
Figure 15. Adjusted operating profit by territory
2003 2002
£m £m
UK 17.0 16.7
US 7.5 4.6
Mainland Europe 0.7 –
Central costs (2.7) (3.1)
Adjusted operating profit 22.5 18.2
Figure 16. Adjusted operating profit by half year
2003 2002 Change
%£m %£m %
First half 29% 6.5 26% 4.7 Up 38%
Second half 71% 16.0 74% 13.5 Up 19%
Adjusted 
operating profit 100% 22.5 100% 18.2 Up 24%
Figure 17. Gross contribution by sector
2003 2002
Games 45% 38%
Computing 31% 38%
Entertainment 24% 24%
First half 29%
Second half 71%
Adjusted operating profit by half year 2003
First half 26%
Second half 74%
Adjusted operating profit by half year 2002
Games 45%
Entertainment 24%
Computing 31% 
Gross contribution by sector 2003
Games 38%
Entertainment 24%
Computing 38% 
Gross contribution by sector 2002 24 The Future Network plc Annual Report 2003
Proposed change of financial year end
The Board proposes to change the
financial year end of the Group from
31 December to 30 September . The
October to December period generates
a significant proportion of revenues 
and profits and makes forecasting
performance during the year a
challenge. Changing the year end will
facilitate the management of the
business and build in more certainty 
in predicting outcomes. 
It is also notable that within this busiest
trading quarter the business prepares
detailed operating budgets for the
ensuing financial year; reviews staff
salaries; and monitors closely the
financial implications of any deviation
from budget arising in the last quarter 
of the financial year . 
By changing the financial year end
to 30 September , we believe that we 
will achieve a more balanced and
effective management of the business
internally, whilst also providing a 
better framework for managing the
business as a public company. 
The Board therefore proposes to shorten
the current financial reporting period
by three months, so that the Company’ s
next audited results would be for the
nine months to 30 September 2004.
Figure 18 illustrates that a 31
December year end results in a 25:75
split in adjusted operating profits
(comparing H1 with H2). With a
September year end, as shown in figure
19, this will change to an estimated
60:40 split of adjusted operating profits
(comparing H1 with H2). 
The proposed change of financial year
end is not a matter which requires the
approval of shareholders. However ,
consistent with our views on aspiring to
best practice in corporate governance,
we have decided to invite shareholders
to vote in favour of this change at the
2004 Annual General Meeting.
If approval is given, our reporting plan
will be as shown in figure 20.
The next audited financial statements
would be those for the nine months to
30 September 2004.
These would be accompanied by pro
forma financial statements for the
twelve months to 30 September 2003
and 30 September 2004. These pro
forma financial statements would
encompass the Group profit and loss
account, Group cash flow statement,
and notes to the financial statements
concerning the Group profit and loss
account (the equivalent of Notes 1 to 8
in this Annual Report). All this pro 
forma financial information would be
accompanied by a report prepared 
by the Company’ s auditors.
Cash flow and funding
Net cash position
The Group started the year with net
cash of £16.8m and ended the year
with £13.4m. The year was significantly
cash generative for the Group and the
net cash inflow from operating activities
was £22.6m (2002: £27.0m). The
Group has maintained its bank facility,
currently amounting to £27.5m 
and has borrowings under the facility
denominated in US Dollars totalling
£5.1m thereby leaving more than
adequate headroom for the operational
funding requirement of current
activities. 
Hedging policy on interest rates
No hedging arrangements were 
entered into during 2003 and none 
was outstanding from previous years.
Hedging policy on foreign 
exchange rates
The Group is exposed to exchange 
rate fluctuations in the US Dollar and 
the Euro. The Board has developed
policies in order to manage the
exposures effectively. These policies
include consideration being given to
currencies negotiated in cross-border
contracts and the use of spot and
forward contracts as appropriate. 
No other instrument may be used
without the approval of the Board. 
At 31 December 2003 there were no
outstanding contracts with banks or
other third parties in respect of foreign
exchange hedging arrangements.
The Group’ s exposure to foreign
currencies from a balance sheet
perspective is set out in note 18.
Operating and
financial review 
continued
“I’ve now enjoyed a busy and enjoyable year at Future
following a degree in textile and design and three 
years training at the Royal School of Needlework.
Working as T echnical Editor on Cross Stitcher has
given me a fresh insight into the industry, but 
has also allowed me to continue to enjoy 
the creativity of design and textiles which 
I have loved for over 10 years.”
Zoe Patching, T echnical Editor , Cross Stitcher,
Future Publishing. 25 The Future Network plc Annual Report 2003
Capital expenditure
Capital expenditure amounted to £1.4m
in 2003, compared with £0.7m in
2002. For 2004 capital expenditure is
not expected to exceed £2.0m.
Review of the Group’s balance sheet
The Group’ s net assets amounted 
to £111.9m (2002: £112.0m) at 
31 December 2003. The most
significant change in the make-up 
of the Group’ s balance sheet is 
the reduction in net current assets,
a consequence of the £18.4m of cash
spent on acquisitions during the year
which is reflected in the increase in
intangible fixed assets. Consequently
the net current assets at 31 December
2002 of £5.8m have been reduced 
to net current liabilities of £7.0m
(including a creditor of £4.0m for the
proposed dividend). However the Group 
continues to have net cash, which 
at 31 December 2003 amounted 
to £13.4m (2002: £16.8m). 
Intangible fixed assets
Intangible fixed assets at the year end
were carried on the balance sheet at
£117.3m compared with £108.6m at
the previous year end. During the year ,
additions totalled £12.9m in respect 
of the titles acquired in the US, Guitar
World and Guitar One; £4.7m in respect
of the acquisition of HDP in France; 
and £3.8m in respect of the business
acquired from Computec in the UK. 
The Group also acquired a number 
of smaller titles and subscriptions 
lists which amounted to £0.4m.
The amortisation charge for the year
amounted to £13.0m, compared 
with £10.3m in the previous year . The
charge reflects goodwill amortisation
over different periods, appropriate 
to the circumstances of each case. 
These periods are shown in figure 21. 
As at 31 December 2003, the £117.3m
analysed by territory is shown in figure
22. The estimated likely goodwill
amortisation charge in respect of 2004
is £15.8m.
Tangible fixed assets
The carrying value of the Group’ s
tangible fixed assets at the year end
increased from £3.2m to £3.3m. 
This net increase reflects capital
expenditure of £1.4m; a depreciation
charge of £1.4m; and a net exchange
gain of £0.1m.
Working capital
The Group had stocks of paper and
other raw materials at the year end,
and work in progress in relation to
magazines scheduled for publication 
in 2004. The total of these amounts
was £3.5m, compared with £3.6m 
at December 2002. 
Group debtors at 31 December 2003
amounted to £42.4m (2002: £33.3m)
and included trade debtors of £34.1m
(2002: £24.5m). The majority of this
increase is attributable to the increased
scale of the business following the 
four acquisitions made during 2003. 
In terms of average debtor days
outstanding at the balance sheet 
date these remained at 56 days 
(2002: 56 days). 
Net cash
As at 31 December 2003 the Group’ s net
cash position was £13.4m represented
by (i) cash at bank and short-term
deposits totalling £20.1m; (ii) borrowing
in US Dollars totalling £5.1m, and (iii)
other loans of £1.6m. The Group cash
flow statement on pages 50 and 51
explains the movements for the year .
Property provisions
The consolidated balance sheet
contains provisions totalling £1.3m
(2002: £2.9m) representing provisions
against onerous lease commitments
and dilapidations in respect of property.
The property provision reduced during
the year mainly as a result of rental
payments in respect of vacant property
and the net release of other provisions
amounting to £0.5m.
During the year the Group paid a total 
of £3.6m (2002: £4.1m) in relation 
to leasehold property, of which 
£2.8m (2002: £2.7m) was in respect 
of occupied property and £0.8m 
(2002: £1.4m) was in respect of
unoccupied property.
By the end of 2003, all UK property was
fully occupied and accordingly the Group
is no longer paying for any unoccupied
property in the UK.
Figure 19. Estimates for 12 months to 30 September 2003
Quarter ending: December March June September Total
Turnover 30% 22% 23% 25% 100%
Adjusted 
operating profit 48% 13% 11% 28% 100%
Figure 18. Quarterly performance during the year ended 31 December 2003
Quarter ending: March June September December Total
Turnover 21% 23% 24% 32% 100%
Adjusted 
operating profit 14% 11% 29% 46% 100%
Figure 20. Reporting plan
Reporting period: Announcement in:
Half year results to 30 June 2004 September 2004
Nine month results to 30 September 2004 December 2004
Half year results to 31 March 2005 June 2005
Full year results to 30 September 2005 December 2005
Figure 21. Amortisation periods
Total period
Years
Existing UK business, acquired in 1999 20
UK business acquired from Computec in 2003 3
Existing US business, acquired in 1999 10
Guitar World and Guitar One magazines,
acquired in the US in 2003 5
HDP business acquired in France in 2003 2
Existing Italian business, acquired in 1999 10
Figure 22. Intangible fixed assets analysed by territory
£m
UK 77.9
US 25.4
France 2.6
Italy 11.4
Total 117.3 26 The Future Network plc Annual Report 2003
Segmental reporting
Segmental reporting is potentially more
extensive under IFRS than at present
but we believe that we already provide
comprehensive segmental analysis 
of the Group’ s business.
Cash flow reporting
Future is a strongly cash generative
business and the Group’ s cash flow
statement is therefore important to a
proper understanding of the business.
The main changes to cash flow
statements envisaged by IFRS are
presentational in nature.
Among Future’ s other assets and
liabilities, we do not foresee any
particular reporting difficulties arising. 
It is worth noting that Future does 
not have any financial instruments or
defined benefit pension schemes,
both of which can give rise to particular
accounting complexity.
In our Annual Report 2004 we will
continue to monitor developments in
this area and to summarise the more
significant implications for financial
reporting of the Group’ s results.
Summary
We have achieved greater profitability
through increased sales, improved
margins, an expanded portfolio,
and bolt-on acquisitions funded from
surplus cash. With significant growth 
in adjusted earnings per share and 
a strong balance sheet, this is the right
time for us to start paying dividends. 
At the same time, we will continue 
to seek growth both organically and 
by pursuing appropriate opportunities 
to expand.
John Bowman
Group Finance Director
10 March 2004
Operating and
financial review
continued
Impact of International Financial
Reporting Standards (IFRS)
We have been planning carefully 
the steps required to ensure that the 
Group will be able to comply with 
the introduction of IFRS following these
becoming mandatory in 2005. Future 
is a relatively straightforward business
and accordingly we expect to be able 
to comply with IFRS in the Group’ s
financial statements for the year ending
30 September 2006, which will be 
the first period to which IFRS will apply. 
Alongside the audited figures for 
that year will be comparative figures 
for the year ending 30 September
2005. I note below the main areas 
of impact to Future.
Intangible assets
The most significant item on Future’ s
balance sheet is goodwill which will
need to be reassessed under current
IFRS proposals in order that the total
carrying value should be split under 
the following indicative headings:
– T rademarks
– Non-compete
– Subscription lists
– Goodwill
Whilst the values allocated to
trademarks, non-compete and
subscription lists will be amortised 
over the appropriate periods, the
goodwill element will not be amortised
but will instead be subject to annual
impairment testing. It is therefore
possible that fluctuations to reported
earnings could occur in the event 
of impairment reviews concluding that
impairment has taken place. 
Share based payments
Since its Initial Public Offering in June
1999, Future has issued a significant
number of share options. Our initial
review of the impact of IFRS on
accounting for share-based payments
concludes that the likely charge against
Group profits in this respect will not be
more than £0.5m per annum. Additional
charges would arise to the extent that
further share options or shares are
awarded in the future.
“Potrei essere definito come il classico hardcore
gamer . Ho cominciato a giocare a otto anni e 
non ho mai smesso. A diciannove sono riuscito a
realizzare il mio sogno di lavorare nel mondo 
dei videogiochi. Oggi, nove anni dopo, non potrei
desiderare di meglio.”
Alberto Falchi, CD Editor , Giochi per il Mio Computer,
Future Media Italy. 27 The Future Network plc Annual Report 2003
5. Patrick Taylor (age 55)
Independent non-executive*+†
Patrick was appointed as a non-executive
Director and Chairman of the Audit Committee
on 24 April 2001. He was formerly Chief
Executive of GWR Group plc, the owner of, inter
alia, the UK’ s largest commercial radio station,
Classic fm. Before joining GWR, Patrick was
Group Finance Director of Capital Radio plc. 
A qualified chartered accountant, he began 
his career at Coopers & Lybrand and became a
partner with the practice in 1980, specialising 
in corporate finance. 
6. Lisa Gordon (age 37) 
Independent non-executive*+
Lisa was appointed as a non-executive Director
on 12 March 2003. Lisa started her career 
in the City as an investment analyst with County
NatWest and made the move into industry in
1993 when joining the record industry’ s trade
body IFPI. Lisa joined Chrysalis Group plc in
1994 as Corporate Development Director and
was appointed to the main Board. She held this
role for eight years with particular responsibility
for managing the Group’ s corporate relations.
She left the Chrysalis Group on 31 December
2002 in order to be able to spend more time
with her young family whilst pursuing new
corporate interests.
7. John Mellon (age 63) *+
Independent non-executive
John was appointed as a non-executive Director
on 12 March 2003. John has had a successful
business career in magazine publishing, was
Chairman of IPC Magazines and a member of
the executive committee of Reed Elsevier. 
8. Mark Millar (age 34) §
Company Secretary
Mark was appointed Company Secretary and
Head of Legal on 23 September 2002. 
Mark is a solicitor who joined the Company from 
one of the leading international law firms,
Allen & Overy. He has a wide range of UK and
international commercial and corporate 
finance experience.
1. Roger Parry (age 50)
Independent non-executive Chairman † 
Roger was appointed as a non-executive
Director of the Company on 4 June 1999 and as
non-executive Chairman on 28 September
2001. He runs the International Division of Clear
Channel Communications. Previously he was
Chief Executive of More Group plc and has 
been a director at Aegis Group plc and WCRS
plc. He spent three years with McKinsey, the
international consulting firm, and before that
was a journalist with BBC TV and radio. He 
is also Chairman of Johnston Press plc, a non-
executive director of iTouch plc and a trustee 
of the Shakespeare’ s Globe Theatre. 
2. Greg Ingham (age 43)
Chief Executive
Greg was appointed as a Director of the
Company on 11 May 1999, and led Future
through its IPO in June 1999. He began 
his publishing career as a journalist at Reed
International plc in 1983. Having left in 1984
to edit an independent trade paper, he then
joined Future Publishing Limited in September
1988 as publisher. He successfully drove
growth in computing and games where Future
became clear market leaders. He was
appointed Managing Director in January 1996
and, following the management buy-out from
Pearson in April 1998, was appointed Chief
Executive of Future Publishing Holdings Limited.
He became Chief Executive of the Company 
at the time of the flotation. 
3. John Bowman (age 47)
Group Finance Director
John joined Future as Group Finance Director 
on 16 November 2001. Prior to that he spent
seven years as Group Finance Director at
Scottish Radio Holdings plc (SRH). His media
experience includes commercial radio,
publishing, outdoor advertising and film. During
his time at SRH, he played a key role in the
group’s successful expansion by acquisition 
and organic growth. Before joining the SRH
group John worked for KPMG where he qualified
as a chartered accountant.
4. Michael Penington (age 45)
Senior independent non-executive*+†
Michael was appointed as a non-executive
Director of the Company on 19 April 2000 after
16 years at US investment bank Morgan
Stanley, most recently as an Executive Director,
Corporate Finance Department. His experience
at Morgan Stanley included transactions in
several European countries and coverage of
venture capital markets. He holds a D.Phil. from
Oxford University. He is non-executive Chairman
of Warwick Effect Polymers Ltd and Im-Pak
Technologies Ltd and a non-executive Director of
Innovonics Ltd, an Australian company,
Cybersense Limited and Hardide Limited.
Board 
of Directors
* Member of the Audit Committee
+ Member of the Remuneration Committee
† Member of the Nomination Committee
§ Company Secretary
1
23
45
67
8 Principal activity and business review 
The Group’ s principal activity is the publishing of special-
interest consumer magazines, notably in the games,
computing and entertainment segments of the consumer
magazine market. The Company’ s subsidiaries operate
principally in the UK, US, France and Italy. A review of 
the activities of the year, the position at the year end and
likely future developments, is set out in the Chairman’ s
statement, Chief Executive’ s review and the operating 
and financial review.
Financial results
The audited financial statements for the year ended 
31 December 2003 are set out on pages 46 to 74. Details 
of the Group’ s results and proposed dividend are set out 
in the Group profit and loss account on page 46 and in 
the notes to the financial statements. 
Proposed first dividend 
No dividends have been paid by the Company to date. 
During 2003, the Company took the necessary preparatory
steps to enable the payment of dividends. This involved 
the cancellation of the Company’ s share premium account,
which was effected on 12 June 2003 following the approval
of shareholders at the Annual General Meeting held on 
15 May 2003 and Court approval. As a result, the Company
now has significant distributable profits. In light of the 
strong financial performance for the year, the Board
recommends a final dividend, payable in respect of 2003,
of 1.25 pence per share. If approved at the 2004 Annual
General Meeting to be held on 13 May 2004, this first
dividend will be payable on 24 May 2004, to shareholders 
on the register on 23 April 2004. The ex dividend date will 
be 21 April 2004.
Dividend policy and dividend cover
The Board’ s policy is that dividends should be covered at
least twice by adjusted earnings per share. These amounted
to 4.9 pence for 2003, providing more than adequate 
cover for the proposed dividend of 1.25 pence. It is the
current intention of the Board to recommend a final-only 
dividend, of 1.25 pence per share for the nine months 
to 30 September 2004, in the absence of exceptional
circumstances and following our proposed change in
financial year end.
Proposed change of financial year end
As explained in the Chairman’ s statement and on page 24
of the operating and financial review, the Board proposes 
to change the financial year end of the Group from 
31 December to 30 September. The Board therefore
proposes to shorten the current financial period by three
months, so that the Company’ s next audited results would 
be for the nine months to 30 September 2004. Consistent
with our views on aspiring to best practice in corporate
governance, we have decided to invite shareholders to 
vote in favour of this change at the 2004 Annual General
Meeting, details of which are set out on pages 31 and 32.
Share capital
Details of all movements in share capital are given in 
note 19 on page 67. As at 31 December 2003 the number of
Ordinary shares in issue was 322.5 million. This represents
an increase of less than 1% compared with the number of
Ordinary shares in issue on 31 December 2002. All of the
new shares were issued following the exercise of share
options. No shares were issued in relation to the Group’ s
acquisitions made during 2003.
Directors’ report
for the year ended 
31 December 2003
28 The Future Network plc Annual Report 2003
Significant shareholdings
At 10 March 2004 the Company had been notified of the following significant interests in its Ordinary shares:
Percentage 
Number of issued 
Shareholder of shares share capital
Fidelity International Limited 48,138,411 14.89%
Schroder Investment Management 47,822,654 14.79%
Barclays Global Investors 21,125,987 6.54%
UBS Global Asset Management 16,701,741 5.17%
JP Morgan Fleming Asset Management 15,045,146 4.65%
Deutsche Asset Management 14,051,524 4.35%
Legal and General Group plc 11,804,666 3.65%
Deutsche Bank AG 10,412,116 3.22%
Directors’ holdings 5,288,445 1.64%
Total of significant holdings 190,390,690 58.90%
Total number of shares in issue 323,250,016 100.00% Directors’ shareholdings 
The table below shows the Directors’ interests in Ordinary shares of the Company from 1 January 2003 to 
31 December 2003:
Balance as Balance as
at 1 January at 31 December
3
2003 Purchases Sales 2003
Directors in office at 31 December 
Executive 
G Ingham
1
4,352,271 – (317,826) 4,034,445
J Bowman 500,000 – – 500,000
Non-executive
R Parry 338,000 – – 338,000
M Penington 281,000 – – 281,000
P Taylor 100,000 – – 100,000
L Gordon – – –  –
J Mellon – 35,000 – 35,000
Total 5,571,271 35,000 (317,826) 5,288,445
Former Directors
C Morrison
2
251,870 – – 251,870
Total 5,823,141 35,000 (317,826) 5,540,315
Notes:
1 As at 31 December 2003, G Ingham’ s beneficial holding amounted to 3,009,801 Ordinary shares; in addition G Ingham is deemed to be interested
in the 1,024,644 Ordinary shares held by his wife, J Ingham. 
2 C Morrison resigned as an executive Director with effect from 16 September 2003.
3 There were no changes in the Directors’ interests between 31 December 2003 and 10 March 2004. 
29 The Future Network plc Annual Report 2003
Directors 
The names and details of the Directors holding office at 
31 December 2003 are given on page 27. Lisa Gordon and
John Mellon were appointed non-executive Directors with
effect from 12 March 2003. Colin Morrison resigned from
the Board with effect from 16 September 2003. Directors’
shareholdings in the Company’ s Ordinary share capital 
are set out above. The Company’ s Register of Directors’
Interests is open to inspection at the Company’ s registered
office and contains full details of Directors’ shareholdings
and options to subscribe for shares. No Director has any
interest in any other share capital of the Company or 
any Group Company, nor does any Director have a material
interest in any contract of significance to the Group. 
Corporate governance 
The Board supports best practice in corporate governance.
The Board’ s report on this subject, which includes the
Directors’ statement of responsibilities for the preparation
of the accounts, is set out on pages 40 to 43.
Employees
Employee motivation and communications are important to
the Group, which seeks to encourage employee involvement
in all areas of the business. Management meets regularly
with employees to discuss matters of common interest and
to provide opportunities for an open exchange of ideas.
Employee policies
Good communications are encouraged by the use of Future’ s
intranet, e-mail, regular briefing meetings and staff surveys
to ensure that all employees are informed about the Group’ s
trading, the financial and economic factors affecting the
performance of the Group and other matters of importance
to them and in order that views of employees can be taken
into account in making decisions which are likely to affect
their interests.
The quality, commitment and effectiveness of the Group’ s
employees are crucial to its success. Staff policies are
designed to encourage employees’ interest in the business
and employee share ownership is encouraged through
savings-related and other employee share schemes.
Employment policies do not discriminate between
employees or potential employees on the grounds of age,
colour, race, ethnic or natural origin, sex, marital status,
religious beliefs or disability. If an employee became
disabled whilst in employment and, as a result, was unable
to perform his or her duties, every effort would be made to
offer suitable alternative employment and assistance with
re-training. All employees are encouraged to discuss career
prospects and training needs with their managers and
opportunities are not restricted on the basis of age, colour,
race, ethnic or natural origin, sex, marital status, religious
beliefs or disability. Environmental policy
As a publisher and non-manufacturer, the Group’ s main
products are based on intellectual property. However, the
Board is mindful of the potential impact on the environment
of Group activities and recognises its responsibility to the
environment in terms of its purchase of paper and print for
magazines, and the disposal of waste. The Group’ s energy
consumption represents less than 1% of costs but,
nevertheless, efforts are being made to minimise wastage. 
a) General
This policy defines the key environmental standards to be
applied throughout the Group:
– The policy is communicated to all employees via induction
training and the intranet, and to suppliers via purchasing
staff, contract documentation and the Internet. 
– Ultimate responsibility for adherence to policy rests 
with the Managing Directors of each operating company,
who report on compliance to the Chief Executive. 
– We are committed to monitoring and auditing 
our performance in the areas of paper, print, and the 
disposal of waste.
b) The purchase of magazine paper and print
Paper is by far the largest raw material for the Group. In the
selection of paper and paper suppliers we take account 
of supplier’ s environmental credentials and in particular: 
– we are working towards a minimum 90% (by tonnage) 
of our paper usage being derived from either managed 
and sustainable forests where at least one tree is planted
for every tree felled, or from re-cycled fibre.
– we actively encourage our suppliers to work towards one 
of the internationally recognised and independently
audited certification schemes for environmental care in
forest management and conservation. During the year
2003 the procurement of paper for the Group’ s UK trading
company was audited by the FSC (Forestry Stewardship
Council) to assess the company’ s control systems for
ensuring that its supply chain for FSC papers cannot be
diluted by the entry of non-FSC papers. The company was
awarded FSC Chain of Custody certification.
In the selection of print suppliers, we also factor in
environmental considerations. We ensure, via pre-
qualification audits and contract reviews, that appointed
printers have procedures in place to minimise waste at 
all stages of the production process. 
c) The disposal of waste
We comply with our obligations under the Producer
Responsibility Obligations (Packaging Waste) (Amendment)
(England) Regulations 2002 in the UK and we ensure
compliance with the equivalent regulations, where they apply,
in the other countries in which the Group has companies.
We constantly work with print suppliers to ensure the safe
and clean disposal of toxic waste (especially inks) and the
re-cycling of waste papers. 
Social responsibility
As noted above, the importance of environmental
responsibility is recognised and although it is considered
that the nature of the Group’ s activities has a minimal 
direct effect on the environment, the Group does seek to 
act responsibly in environmental matters.
With regard to health and safety issues, all of our operating
subsidiaries have a Health and Safety Policy, designed to
encourage good practice by employee and employer alike.
One particular risk can emerge for publishing companies,
namely the risk of libel claims. Although this is an insured
risk, our publishing subsidiaries have procedures in place 
to ensure that any potentially contentious issues are
checked first, with legal advice where appropriate, before
being published.
Supplier payment policy
The policy of the Company and the Group, in relation to all of
its suppliers, is to agree payment terms when an order is
placed, and to abide by those terms provided that goods and
services are supplied in accordance with agreed terms and
conditions. The Company and Group do not follow any code
or standard on payment practice, but it is the policy to pay all
suppliers when their invoices become contractually due for
payment. At 31 December 2003 the Group as a whole had 
50 (2002: 55) days of purchases outstanding. The Company
had no trade creditors at the year end.
Charitable and political contributions
During the year the Group has made charitable contributions
amounting to £22,000 (2002: £9,000). £14,000 represents
payments made by the Group under the charitable match
policy which was formalised in 2003. Under this scheme,
the Group matches contributions raised by employees for
charitable purposes (that qualify under the rules of the
policy). These payments were made to a number of charities
including, in particular, cancer charities. £6,000 represents
payments to other US charities and £2,000 was for UK
charities local to the Group’ s head office in Bath. In addition,
during the course of 2002 and 2003, the Group’ s UK
operations donated surplus computer equipment to 
33 schools and community groups in the Bath and North 
East Somerset area, where the Group’ s headquarters 
are situated. The Group also makes regular deliveries 
of free magazines to a number of surgeries, health centres,
hospitals and other community organisations within 
the region.
Consistent with its policy on political contributions,
no political contributions were made (2002: Nil).
Directors’ report
continued
for the year ended 
31 December 2003
30 The Future Network plc Annual Report 2003 Annual General Meeting
The Company’ s fifth Annual General Meeting will be held 
on Thursday 13 May 2004 at 11a.m. at the Wessex Suite,
Francis Hotel, Queen Square, Bath BA1 2HH. There are 
11 items of business to be considered at the Annual General
Meeting, as explained below. The notice of Annual General
Meeting can be found on pages 76 and 77.
Ordinary Business
Ordinary resolution 1 – Financial statements
Shareholders will be asked to approve the financial
statements of the Company for the year ended 31 December
2003, together with the reports of the Directors and
auditors. The audited financial statements appear on pages
46 to 74.
Ordinary resolution 2 – Directors’ remuneration report
Consistent with best practice and regulation, shareholders
will also be asked to approve separately the Directors’
remuneration report for the year ended 31 December 2003,
which is set out at pages 33 to 39. 
Ordinary resolution 3 – Declaration of a dividend
The Directors propose a dividend of 1.25 pence per share 
to be paid on 24 May 2004 to shareholders on the register 
on 23 April 2004. The background to and reasons for the
recommendation to pay a dividend are explained on page 28.
Ordinary resolutions 4 and 5 – The Directors
Under Articles 14.1 and 14.2 of the Company’ s Articles of
Association, John Bowman (Group Finance Director) and
Roger Parry (non-executive Chairman) both retire by rotation
at the forthcoming Annual General Meeting and, being
eligible, offer themselves for re-election. Biographical details
in respect of John Bowman and Roger Parry are set out 
on page 27. An explanation as to why other members of the
Board believe Roger Parry should be re-elected is set out 
in the corporate governance report on page 40.
Ordinary resolutions 6 and 7 – Auditors
Resolutions proposing the re-appointment of
PricewaterhouseCoopers LLP as auditors of the Company,
and authorising the Directors to determine their remuneration
will be submitted to the Annual General Meeting.
Special business
Ordinary resolution 8 – Change of financial year end
It is proposed that the Company’ s financial year end be
changed from 31 December to 30 September, with effect
from 30 September 2004. The reasons for the proposed
change of year end are explained on page 28. The change 
is not a matter that requires the approval of shareholders 
but, consistent with our views on aspiring to best practice 
in corporate governance, we have decided to invite
shareholders to vote in favour of this change at the Annual
General Meeting.
If this resolution is approved, the Company’ s next accounting
reference period will be shortened to the nine-month period
from 1 January 2004 to 30 September 2004.
Ordinary resolution 9 – To authorise the Directors to issue
and allot new Ordinary shares
There may be circumstances where it would be appropriate
for the Company to issue new Ordinary shares, such 
as an acquisition where it might be appropriate for the
consideration to be settled in whole, or in part, by the 
issue of new Ordinary shares.
Under the provisions of section 80 of the Companies Act
1985, the Directors may allot and issue Ordinary shares
(other than pursuant to employee share schemes) only if
authorised to do so by the Company’ s Articles of Association
or by shareholders at a Shareholders Meeting. Authority is
being sought to allot Ordinary shares having an aggregate
nominal value of up to £1,066,000, such authority to expire
on 12 May 2009. This is equivalent to just under 33% of 
the issued Ordinary share capital of the Company as at 10
March 2004. If granted, this authority would replace all
previous authorities granted in this connection.
The Directors do not have any present intention of exercising
this general authority.
Special resolution 10 – Disapplication of statutory 
pre-emption rights
Resolution 10 will be proposed to renew the Directors’
existing authority to allot new Ordinary shares for cash other
than pro rata to existing shareholdings. Section 89 of the
Companies Act 1985 requires that equity securities issued
for cash must first be offered to the Company’ s existing
holders of securities in proportion to their existing holdings. 
The authority now sought would permit the allotment of
Ordinary shares up to the amount covered by Resolution 
10 in connection with a rights issue (or other pro rata Ordinary
share issue) and otherwise up to an aggregate nominal
amount not exceeding £161,500, equivalent to just under 
5% of the issued Ordinary share capital of the Company 
as at 10 March 2004. If granted, this authority would replace 
all previous authorities granted in this connection.
Special resolution 11 – Purchase of own shares
The Company currently has no authority to purchase its 
own shares. In line with common market practice and as
permitted by the Articles of Association, it is proposed 
that the Company be authorised to use its available cash
resources to acquire its own shares in the market for 
either cancellation or to hold them as treasury shares. 
The maximum number of Ordinary shares which may be
purchased will be 32,000,000, representing approximately
10% of the issued Ordinary share capital of the Company.
The minimum price payable for shares will be the nominal
value of 1 pence per share and the maximum price will not
be more than 5% above the average of the middle-market
quotation of the Company’ s Ordinary shares as derived from
the London Stock Exchange Daily Official List for the five
business days preceding the day on which the shares are
purchased. This authority, if granted, would expire following
the conclusion of the next Annual General Meeting of the
Company to be held in 2005.
31 The Future Network plc Annual Report 2003 Whilst the Board has no current intention to use the power
proposed, it considers that it is desirable to have this power
each year, as there could be circumstances in which the
purchase by the Company of its own shares would be in the
best interests of the Company and its shareholders
generally. The Companies (Acquisition of Own Shares)
(Treasury Shares) Regulations 2003 (the ‘Regulations’)
came into force on 1 December 2003. The Regulations
enable certain listed companies to hold shares in treasury,
as an alternative to cancelling them, following a purchase 
of own shares by the Company in accordance with the
Companies Act 1985. Shares held in treasury may
subsequently be cancelled or sold for cash or used to satisfy
share options awards under the Company’s share option
schemes. Once held in treasury, a company is not entitled 
to exercise any rights, including the right to attend and vote
at meetings in respect of the shares. Further, no dividend 
or other distribution of a company’s assets may be made 
to that company in respect of the treasury shares. If the
Directors exercise the authority conferred by Special
Resolution 11 to purchase Ordinary shares in the Company,
they will consider holding those shares in treasury, rather
than cancelling them.
Action to be taken
Enclosed with this Annual Report 2003 is a form of proxy 
for use in connection with the Annual General Meeting.
Please complete and return the form in accordance with 
the instructions printed on it to Lloyds TSB Registrars, The
Causeway, Worthing, West Sussex BN99 6ZL, as soon as
possible, and in any event so as to be received no later than
11a.m. on Tuesday, 11 May 2004. The return of the form 
of proxy will not stop you from attending the Annual General
Meeting and voting in person if you wish to do so.
Recommendation
Your Board believes that each of the Resolutions to be
proposed at the Annual General Meeting is in the best
interests of the Company and its shareholders as a whole,
and accordingly unanimously recommends that you vote 
in favour of the Resolutions, as they intend to do in respect
of their own beneficial holdings.
Annual General Meeting proceedings
Following best practice and as done in previous years, the
Company will, at the Annual General Meeting, be indicating
the level of proxies lodged on each resolution together with
the balance for and against each resolution and the number
of abstentions. After the meeting an announcement of 
the results will be made to the London Stock Exchange,
we will write to all shareholders and post the results 
on our corporate website, www.thefuturenetwork.plc.uk.
A summary of votes cast at the meeting will also be
published on this website.
Approved by the Board of Directors
and signed on its behalf by:
Mark Millar
Company Secretary
Directors’ report
continued
for the year ended 
31 December 2003
32 The Future Network plc Annual Report 2003 Compliance with best practice
The Board seeks to apply best practice in remuneration
policy. This is in line with the standards set out in the new
Combined Code issued in July 2003 (and the preceding
Combined Code issued in June 1998) which is the current
Combined Code of which the Board must report compliance 
in this Annual Report and appended to the Listing Rules of
the Financial Services Authority.
Remuneration Committee
Four independent non-executive Directors sit on the
Remuneration Committee. Michael Penington, the Senior
Independent Director, is its Chairman and the other
members are Patrick Taylor, John Mellon (from 12 September
2003) and Lisa Gordon (from 12 September 2003). Roger
Parry resigned from the Committee on 12 September 2003. 
The Committee is responsible for determining the basic
annual salaries, incentive arrangements, service contracts
and all other terms and conditions of employment of the
executive Directors and under the new Combined Code, the
remuneration of the Chairman. The Committee also monitors
the level of and makes recommendations to executive
Directors on significant policies affecting the remuneration,
performance and development of senior management 
below Board level. The Committee is responsible for
approving the policy terms of all employee share incentive
arrangements subject to shareholder approval for all 
new share incentive plans. No Director is involved in deciding 
his or her own remuneration.
Advisers to Remuneration Committee
New Bridge Street Consultants are independent advisers 
to the Committee, having first been appointed in 2002 by 
the Committee. They have provided advice to the Committee
principally in relation to the Company’ s plans for Directors’
remuneration for 2003 and 2004 and in respect of the Long
Term Incentive Plan which received shareholder approval 
at the Company’ s Annual General Meeting on 15 May 2003.
The total fees payable to New Bridge Street Consultants
during 2003 did not exceed £3,000. No other services have
been provided by them to the Company or to any Director 
of the Company and they have no other connection with 
any Director or the Company.
Compliance with the current and new Combined Codes
The Board has applied the ‘Principles of Good Governance’
contained in the current Combined Code issued by the UK
Committee on Corporate Governance as they relate to
Directors’ remuneration, in the manner described in this
report. In addition the Board has taken steps to comply with
the new Combined Code and reports on such compliance 
in this report and the corporate governance report on pages
40 to 43. In relation to the Company’ s performance-related
remuneration policy, the Committee has followed Schedule 
A of each Combined Code, and in relation to disclosures 
of Directors’ remuneration, the Committee has complied
with Schedule B of each Combined Code.
Policy on remuneration of executive Directors
In determining the Company’ s policy on executive Directors’
remuneration, the Committee has regard to:
a) The objective for remuneration packages offered to executive
Directors to be competitive, being comparable with packages
available within other groups operating in similar markets and
on a similar scale, including competitors.
b) The desirability of remuneration packages, including 
long-term incentive plans, to be fixed for individual
executive Directors so as to attract, retain and motivate
executives of the highest calibre, and at the same time 
to optimise the interests of shareholders by ensuring 
that a significant portion of remuneration links rewards 
to performance as set out below.
c) The remuneration packages of senior management 
within the Group.
Annual rewards and long-term incentives contain a
significant element of performance-related remuneration,
and are therefore aligned with the Group’ s achievement 
of results, and individual executive Directors’ contributions
towards that achievement.
Details of the key elements of basic annual salary, annual
performance-related bonus and pensions for 2003 are given
on page 37. Details of Directors’ share options are given on
page 38. Directors’ shareholdings are given in the Directors’
report on page 29.
In terms of policy, the following are the key elements of the
remuneration packages for the executive Directors:
a) Basic annual salary
In assessing the level of basic annual salary for each
executive Director, account is taken of the pay practices 
of such other companies as the Committee and its 
external remuneration advisers consider appropriate,
the responsibilities of each executive Director, and 
pay awards elsewhere in the Group. Salaries are reviewed
annually by the Committee.
b) Performance-related bonuses
For 2002 and 2003, performance-related bonuses were
dependent on growth in Group operating profit compared
with the previous year. For this purpose, operating profit was
measured by adjusted operating profit and the final figures
were £10.0m for 2001, £18.2m for 2002 and £22.5m 
for 2003. The Committee is satisfied that these figures were
not materially affected by the impact of acquisitions made
during 2003. Having reviewed the targets set in light of 
the completion of the annual audit, the Committee has
confirmed the award of bonus to each executive Director 
and details for each Director are given on page 37. 
For 2004, the Committee has decided that performance-
related bonuses will be paid according to growth in earnings
per share actually achieved in 2004 compared with that
recorded for 2003. For this purpose adjusted earnings per
share will be used and this measure excludes the impact 
of annual goodwill amortisation.
Directors’
remuneration
report
for the year ended 
31 December 2003
33 The Future Network plc Annual Report 2003 Performance-related bonuses are paid only after the
completion of the audit of the Group’ s financial statements
and the maximum amount payable to any one executive
Director in respect of such bonus is limited to 100% of 
basic annual salary.
c) Long term incentive plans (‘LTIPs’) 
The Board considers that it is right to align the interests 
of executive Directors with those of shareholders generally
by encouraging Directors to hold shares in the Company,
and by the grant of appropriate share incentives to both
executive Directors and senior executives. 
The Board considers that interests will be more closely
aligned with shareholders through the LTIP scheme than the
grant of options, and therefore no longer intends to consider
the grant of share options to senior managers and executive
Directors each year. At the Company’s Annual General
Meeting 2003, an LTIP was adopted and it is anticipated 
that invitations under that LTIP will be issued for the first
time during the period of 42 days following the publication 
on 10 March 2004 of the Group’ s annual results.
In the event that invitations are issued to senior managers
and executive Directors to participate in the LTIP, it is
envisaged that new shares in the Company will be issued
in due course, subject to the attainment of performance
criteria over a three year period. After such three year period
the Company will match the number of Ordinary shares
purchased by each participant on the basis of growth in pre-
goodwill amortisation earnings per share from 50% if growth
is equal to RPI plus 3% per annum up to 100% if growth is
equal to RPI plus 7%, and pro rata on a straight-line basis
between the two. The issue of such shares would result in
dilution of shareholders’ equity and the Board will therefore
comply with the guidelines on this subject published by 
the Association of British Insurers (ABI) in December 2003.
d) Share option schemes
In granting share options during the year the Committee has
complied with the latest guidelines on this subject published
by the ABI, including by limiting the value of share options
granted during the year 2003 to no more than the amount of
one times basic annual salary.
The last significant award of share options was made on 
18 April 2003, during the 42-day period following the
publication on 11 March 2003 of the Group’ s results for 
the year 2002. The Company granted share options at 
a price of 52.5 pence per share, over a total of 5,020,000
shares including 400,000 in respect of Greg Ingham 
and 350,000 in respect of John Bowman. 400,000 share
options were granted to Colin Morrison and following his
resignation from the Board (see page 29) these options 
have lapsed. Details of all share options are given on 
pages 68 and 69.
The options granted on 18 April 2003 vest based on
performance criteria set by the Committee at the date of
grant. The criteria were set with reference to growth in the
Company’ s total shareholder return over a three year period
relative to a comparator group of companies, described as
UK companies whose shares are listed in the Media and
Entertainment sector of the London Share Service of the
Financial Times newspaper. A full list of these companies is
given on page 75. The performance criteria are considered
challenging by the Committee and are considered consistent
with the Company’ s media sector peer group. 
e) Pensions
Retirement benefits, which comprise only pensions, are
based on contributions paid under a Group Personal Pension
Plan by the employer and the employee. Greg Ingham and
John Bowman are members of this money purchase plan.
The only element of remuneration which is pensionable is
basic annual salary, excluding all bonuses and benefits-in-
kind. Employer’ s pension contributions were payable in 2003
at 10% of basic annual salary and employee contributions
were payable at 5%.
Policy on non-executive Directors’ remuneration
The remuneration of non-executive Directors (except the
Chairman) is determined by the Board. Fees are paid at 
a standard annual rate for non-executive Directors, in order
to reflect the time commitment and responsibilities of the
roles, with additional amounts payable to those who chair
Board Committees. The Chairman’ s fee is determined by 
the Remuneration Committee.
Non-executive Directors will not be granted share options,
nor participate in any share or incentive scheme without
prior shareholder approval, nor any pension arrangements
with the Company. However, exceptionally, Patrick Taylor 
was granted an option over 100,000 Ordinary shares at 
an exercise price of 47 pence on 19 November 2001 in
satisfaction of a contractual commitment made when he
joined the Board as a non-executive Director in April 2001.
The Board considers that this award of share options does
not affect Patrick Taylor’ s independent status as set out 
on page 40 of the corporate governance report.
It is the Company’ s policy to review levels of remuneration 
for non-executive Directors at least every three years.
Directors’
remuneration
report
continued 
for the year ended 
31 December 2003
34 The Future Network plc Annual Report 2003 Policy on Directors’ service contracts 
and termination payments
a) Service contracts of executive Directors and compensation
Each executive Director has a service contract with the
Company, which is terminable on one year’ s notice.
Compensation for early termination is limited to one year’ s
basic salary and the Director would be required to mitigate
his loss.
Policy on external appointments
The Company recognises that exposure of its executive
Directors to other boards can broaden their experience and
knowledge. Executive Directors are therefore permitted to
accept a non-executive appointment, with the Board’s
approval. As at 31 December 2003, neither of the executive
Directors held any external appointment on the board of 
any other publicly listed company.
35 The Future Network plc Annual Report 2003
Compensation Other benefits
Unexpiredterm payablerelevant to
Name of Date of of contract on Notice period on early termination
Director Contract 31 December 2003 under contract termination payment
Greg Ingham 17 June 1999 N/A 12 Months Salary during Nil
unexpired 
notice period
John Bowman 20 August 2001 N/A 12 Months Salary during Nil
unexpired 
notice period
Former Director
Colin Morrison 12 January 2001 N/A 12 Months Salary during Nil
unexpired 
notice period
Details for the contract of service or contract for services 
of each person who has served as a Director of the 
Company at any time during the relevant financial year 
are set out above.
b) Service contracts of non-executive Directors
Non-executive Directors have three year service contracts
with the Company which are terminable on three months’
notice by either party. It is the policy of the Company that
non-executive Directors stand for re-election every three
years and that their initial terms will be staggered to avoid
retirement simultaneously.
Retirement and re-election
Following due consideration by the Nomination Committee,
John Bowman and Roger Parry will retire from the Board, and
will be offered for re-election as Directors, at the forthcoming
2004 Annual General Meeting in accordance with Articles
14.1 and 14.2 of the Company’ s Articles of Association
which determine that (a) one third of the Directors (or if the
total number of Directors is not an integral multiple of three,
the nearest number to, but not exceeding one third) shall
retire and stand for re-election each year, and (b) no Director
should serve for more than three years without retiring and
standing for re-election. 
Performance graphs
Total Shareholder Return (TSR) against FTSE Media and
Entertainment Sector Index (UK Companies)
Regulations introduced during 2002 require Directors’
remuneration reports to publish a graph showing the 
TSR of the Company during the previous five years. As the
Company has been listed for only four and a half years as at
31 December 2003, the Committee has opted to publish the
graphs (overleaf) for three different periods. In each case,
these show the TSR on a holding of shares in the Company
compared with a hypothetical holding of shares made up of
shares of the same kinds and number as those by reference
to which the FTSE Media and Entertainment Sector Index
(UK Companies) is calculated.
Graph 1 shows the TSR since the Company’s Initial Public
Offering on 25 June 1999. Graph 2 shows the TSR since 
9 November 2001, the record date of the Company’ s Rights
Issue. Graph 3 shows the TSR during the calendar year 2003.
The reasons for selecting the FTSE Media and Entertainment
Sector Index (UK Companies) for these purposes are 
that it is the index in which the Company is classified and it
contains the companies which make up the comparator
group used by the Company for options granted on or since
19 November 2001 for performance criteria under its share
option schemes. The Sector Index currently comprises the
39 companies which are listed on page 75. 36 The Future Network plc Annual Report 2003
Directors’
remuneration
report
continued 
for the year ended 
31 December 2003
0
50
100
150
200
250
25.06.99 25.12.99 25.06.00 25.12.00 25.06.01 25.12.01 25.06.02 25.12.02 25.06.03 31.12.03
The Future Network FTSE Media and Entertainment Sector Index
0
50
100
150
200
250
09.11.01 09.02.02 09.05.02 09.08.02 09.11.02 09.02.03 09.05.03 09.08.03 31.12.03
The Future Network FTSE Media and Entertainment Sector Index
140
160
120
100
80
60
40
20
0
01.01.03 01.03.03 01.05.03 01.07.03 01.09.03 01.11.03 31.12.03
The Future Network FTSE Media and Entertainment Sector Index
Graph 1. Since Initial Public Offering
Total Shareholder Return: Rebased to The Future Network plc as of 25 June 1999.
Graph 2. Since Rights Issue (Commencement of Dealings in New Ordinary shares)
Total Shareholder Return: Rebased to The Future Network plc as of 9 November 2001.
Graph 3. 2003 Total Shareholder Return: Rebased to The Future Network plc as of 1 January 2003. 37 The Future Network plc Annual Report 2003
Emoluments of the Directors
The emoluments of the Directors of the Company (including any entitlement to fees or emoluments from subsidiary
companies) were as follows: 
A. Aggregate emoluments
2003 2002
£’000 £’000
Salaries and fees 826 822
Benefits 44 37
Performance-related bonuses 432 646
Pension contributions 85 32
Compensation for loss of office 221 –
Total 1,608 1,537
B. Individual emoluments of Directors
Performance Compensation Value of any
Salary related for loss other non- Pension 2003 2002
and Fees bonuses of office cash benefits contributions Total Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Directors in office 
at 31 December 2003 
Executive
G Ingham 
1
248 144 – 20 25 437 505
J Bowman 
1
210 122 – 8 21 361 418
Non-executive
R Parry 
2
65 – – – – 65 65
M Penington 40 – – – – 40 36
P Taylor 40 – – – – 40 40
J Mellon
3
24 – – – – 24 –
L Gordon
2, 3
24 – – – – 24 –
Sub-total 651 266 – 28 46 991 1,064
Former Directors
Executive
C Morrison 
4
(Resigned 16 September 2003) 175 166 221 16 39 617 438
Non-executive
B Clouston
(Resigned 25 September 2002) ––– – – – 22
E Murdoch
(Resigned 29 May 2002) ––– – – – 13
Sub-total 175 166 221 16 39 617 473
Total 826 432 221 44 85 1,608 1,537
Notes
1 In relation to the other benefits received, the values indicated relate to the following benefits received by each Director:
Greg Ingham: car allowance, fuel benefit and private health totalling £20,000.
John Bowman: car allowance and private health totalling £8,000.
There were no taxable expenses paid to any Director in 2003.
2 Roger Parry served as non-executive Chairman throughout the year. Mr Parry’ s services were provided by West Eight Investments Limited and fees 
in respect of his services were paid to that company. Lisa Gordon’ s services as a non-executive Director were provided by Farshield Limited and fees
in respect of her services were paid to that company.
3 Lisa Gordon and John Mellon were appointed as Directors on 12 March 2003.
4 Colin Morrison resigned as a Director of the Company with effect from 16 September 2003 and the total compensation package authorised by the
Committee flowed from his contract which provided for compensation for early termination of one year’s basic salary. This amounted to £221,000 
as shown in the table above. In addition, the Committee took into account the estimated performance-related bonus entitlement judged likely 
to arise in relation to the Group’ s performance for 2003. The negotiated settlement amounted to £166,000. A further £10,000 was paid in relation
to benefits and £23,000 in relation to pension entitlement. 
As a result of the total termination payment, Colin Morrison was the highest-paid Director for 2003, with total remuneration of £617,000.  Directors’ interests in share options
Exercise Lapsed 
Price Earliest price per Balance at Granted unexercised Balance at 
Date of paid for exercise Expiry share 1 January during during 31 December 
grant grant date date (pence) 2003 the year the year 2003
Directors in office 
at 31 December 2003
Executive
G Ingham 19 Nov Nil 19 Nov 19 Nov 47 400,000 –– 400,000
2001 2004 2011
18 April Nil 18 April 18 April 52.5 – 400,000 – 400,000
2003 2006 2013
J Bowman 19 Nov Nil 19 Nov 19 Nov 47 400,000 –– 400,000
2001 2004 2011
18 April Nil 18 April 18 April 52.5 – 350,000 – 350,000
2003 2006 2013
Non-executive
P Taylor 19 Nov Nil 19 Nov 19 Nov 47 100,000 –– 100,000
2001 2004 2011
Former Director
C Morrison 19 Nov Nil 19 Nov 19 Nov 47 400,000 –– 400,000
1
2001 2004 2011
2
18 April Nil 18 April 18 April 52.5 – 400,000 (400,000) –
2003 2006 2013
Notes
1 In accordance with the rules of the Schemes mentioned above Colin Morrison may exercise his options granted on 19 November 2001 up until 
15 September 2004 (336,170 options) or up until 19 May 2005 (63,830 options) as at the date of his resignation the performance criteria under 
the scheme had been met with the Company ranking above the 75th percentile of the comparator group for the relevant period.
2  In accordance with the rules of the Scheme Colin Morrison’ s options granted on 18 April 2003 have lapsed as the performance criteria at the date 
of resignation were not met with the Company ranking below the 50th percentile of the comparator group for the relevant period.
Share options granted to Directors in 2001, 2002 and 2003
Following the 2001 Rights Issue, share options were granted
to each of Greg Ingham, Colin Morrison and John Bowman on
19 November 2001 at an exercise price of 47 pence, under
The Future Network plc 1999 Inland Revenue Approved Share
Option Scheme and The Future Network plc 1999 Senior
Management Share Option Scheme. Also on 19 November
2001, share options were granted to Patrick Taylor under an
Option Deed at an exercise price of 47 pence.
These options are subject to performance criteria which
require that options vest if the growth in the Company’s 
TSR over a three year period from the date of grant,
relative to a comparator group of companies, described 
as companies whose shares are listed in the Media and
Entertainment sector of the London Share Service of the
Financial Times newspaper, reaches the following targets:
i) If the Company ranks above the 75th percentile of the
comparator group the options will vest in full.
ii) If the Company ranks above the 50th percentile of the
comparator group one half of the options will vest.
iii) If the Company ranks below the 50th percentile of the
comparator group the options do not vest.
No share options were granted to Directors in 2002.
On 18 April 2003 share options were granted to each of 
Greg Ingham, John Bowman and Colin Morrison at a price 
of 52.5 pence each under The Future Network plc 1999
International Share Option Scheme. These options are
subject to the same performance criteria as those granted 
on 19 November 2001 set out above.
Directors are encouraged to hold their shares for a further
period after exercise, subject to the need to finance any
costs of acquisition and associated tax liabilities.
All shares under option under the above schemes have been
granted at the market value of the shares at the time of grant.
Numbers of share options granted and to be granted are
limited to numbers which fall within the current ABI guidelines.
Details of options held by executive Directors and one 
non-executive Director in the Ordinary shares of The Future
Network plc as at 31 December 2003, and movements
during the year, are shown below.
Directors’
remuneration
report
continued 
for the year ended 
31 December 2003
38 The Future Network plc Annual Report 2003 Interests in Ordinary shares 
The Directors’ interests in the issued Ordinary shares of 
the Company, and movements since 1 January 2003, are set
out on page 29. The Directors’ interests in share options 
are set out on page 38 and interests in The Future Network
plc 1999 Inland Revenue Approved Sharesave Plan (the
‘Sharesave Plan’) are set out below. No options granted by
the Company to Directors were exercised during the year. 
Share price during the year
The middle-market price of an Ordinary share in the
Company during the year was in the range 48 pence to 
69 pence. The average price for the year was 59 pence 
and the year end price was 59 pence.
Share options granted to other employees
Options were granted at flotation in June 1999 and
subsequently over the Company’ s shares under the share
option schemes detailed in note 20 to the accounts. 
Options granted since the 2001 Rights Issue are subject 
to performance criteria linked to growth in TSR which 
are summarised on page 38.
During the year 2003, 3,870,000 options were granted 
to employees which are subject to the same performance
criteria as those options granted to executive Directors 
on 18 April 2003.
Sharesave Plan
The Company’s Sharesave Plan is open to all eligible
employees at the date an invitation is made. Full details 
of the Sharesave Plan are given in note 20. Such options
have been granted in previous years by the Board and on 
16 September 2003 the Board issued an invitation to all 
UK employees. A total of 269,418 share options were
granted in accordance with the Plan rules on 4 October 
2003 at an exercise price of 53 pence, representing a 
20% discount to the prevailing market price on the 
date of invitation.
In total, under the Company’ s Sharesave Plan there were 
as at 31 December 2003, share options outstanding over
1,886,402 Ordinary shares. Included in this total are
options in respect of executive Directors in the table below.
It is the Board’ s intention to continue to consider the issue 
of invitations to eligible employees each year, normally within
the period of 42 days following the publication of the Group’s
interim and/or annual results.
39 The Future Network plc Annual Report 2003
Directors’ interests in Sharesave Plans
Exercise
Price Earliest price per Balance at Balance at 
Date of paid for exercise Expiry share 1 January 31December 
Type of Option Grant grant date date (pence) 2003 2003
Directors in office at 31 December 2003
Executive
G Ingham 18 Dec Nil 18 Feb 18 Oct 38 25,000 25,000
2001 2005 2005
J Bowman 4 Oct Nil 4 Dec 4 Jun 50 18,900 18,900
2002 2005 2006
Former Director
C Morrison 4 Oct Nil 4 Dec 4 Jun 50 18,900 18,900
2002 2005 2006
Approved by the Board of Directors and signed on its behalf by:
Michael Penington
Chairman of the Remuneration Committee
10 March 2004 Best practice in corporate governance
The Board supports best practice in corporate governance.
The Board confirms that the Company complied throughout
the financial year with the provisions of ‘The Combined
Code: Principles of Good Governance and Code of Best
Practice’ adopted in June 1998 and appended to the Listing
Rules of the Financial Services Authority. This is the current
Combined Code on which the Board must report compliance
in the Annual Report. However the Board has also taken
steps during the year towards compliance with the
provisions of the new Combined Code issued on 23 July
2003, and as at 31 December 2003 the Board considers
that it is able to report compliance with such provisions.
The Board
The Board is responsible for the Group’ s operations and 
met six times during the financial year 2003. In each case,
there was full attendance by each Director with the exception
of Colin Morrison’s absence from the September Board
meeting. The Board has established a pattern of holding
informal, private dinners on the evening before Board
meetings, and during 2003 five such dinners were held,
enabling informal discussion to be held about business
topics the evening before the following day’ s Board meeting.
All Directors have found this process useful.
The Board currently comprises two executive Directors: 
Greg Ingham (Chief Executive) and John Bowman (Group
Finance Director). Colin Morrison resigned as a Director 
with effect from 16 September 2003, having been Chief
Operating Officer until that date. There are five non-executive
Directors: Roger Parry (non-executive Chairman), Michael
Penington (senior independent non-executive Director),
Patrick Taylor, Lisa Gordon (appointed on 12 March 2003)
and John Mellon (appointed on 12 March 2003). The Board
considers that there is a strong presence of both executive
and non-executive Directors on the Board.
The non-executive Directors, led by Michael Penington,
met during the year without the presence of the Chairman 
in order to assess the performance of the Chairman and 
in doing so, they took into account the views of the executive
Directors. As a result, all the Directors (except the Chairman)
recommend that he should be re-elected as the Chairman 
at the Annual General Meeting. The Chairman met with 
the non-executives during the year without the presence 
of the executive Directors in order to assess the performance
of the executive Directors. In 2003, a process of informal
meetings between the Chairman and each Director, followed
by a Board discussion, was undertaken to evaluate the
performance of the Board, its committees and individual
Directors. In 2004, a further formal and rigorous evaluation 
of performance will be undertaken.
Following the two appointments mentioned above and the
resignation of Colin Morrison, the Board of seven Directors
comprises an independent non-executive Chairman, a senior
independent non-executive Director, three other independent
non-executive Directors, and two executive Directors.
Accordingly the Company complies with the provisions of
both the current and the new Combined Code in respect 
of the composition of the Board.
The Company will ensure that, in accordance with its 
Articles of Association, no Director serves for a period longer
than three years without retiring at the appropriate Annual
General Meeting. Those retiring at the 2004 Annual General
Meeting by rotation are Roger Parry and John Bowman.
Since the Company listed on the London Stock Exchange 
it has had in place insurance cover in respect of legal action
against Directors of the Group.
Non-executive Directors and independence
In the view of the Board, the non-executive Directors bring
strong, independent judgement and considerable knowledge
and experience to the Board’ s deliberations. 
The terms of appointment of the non-executive Directors
were updated and documented in March 2003. These 
terms of appointment, which comply with the requirements
of both the current and new Combined Codes, are available 
for inspection at the Company’ s registered office and at 
the Annual General Meeting. All non-executive Directors
serve for three-year terms, terminable by either party on
three months notice subject to their re-election or removal
pursuant to the provisions of the Companies Act. There is 
no current limit to the number of terms which may be served,
but the Company has been listed on the London Stock
Exchange for less than five years in total. 
The Board reviewed the independent status of each 
non-executive Director during the year and considers that 
all of its non-executive Directors are independent for 
the purpose of each of the current and the new Combined
Codes. In coming to its decision the Board carefully
considered the factors which, under the new Combined
Code, could affect independence but in the opinion of the
Board do not do so. 
a) Patrick Taylor has a number of outstanding share options
consequent to a contractual undertaking given in 2001,
when he joined the Board. He is not financially dependent
on the Company in any way. 
b) Michael Penington served as interim Finance Director to
the Company on a consultancy basis for seven months,
prior to the Company’ s successful 2001 Rights Issue. He
is not financially dependent on the Company in any way.
Executive Directors
As noted in the Directors’ remuneration report on page 35,
the notice period for all executive Directors is one year and 
in the event of termination each executive Director is entitled 
to 12 months’ notice and only basic annual salary is used 
to calculate any contractual termination payment.
Greg Ingham was last re-elected as a Director at the
Company’ s 2002 Annual General Meeting.
John Bowman was elected as a Director at the Company’s
2002 Annual General Meeting and will stand for re-election at
the Company’ s 2004 Annual General Meeting. Biographical
details for John Bowman are set out on page 27.
Corporate
governance
report
40 The Future Network plc Annual Report 2003 Company Secretary and advisers 
All Board members have access to the advice and services
of the Company Secretary, who is a qualified solicitor, and 
a procedure has been agreed by the Board for all Directors 
to take independent professional advice if necessary,
and at the Company’ s expense, in the furtherance of their 
duties as Directors and committee members. The Company
Secretary is the secretary for the Audit, Remuneration 
and Nomination committees. 
The Board continued its review of advisers during 2003. 
In addition to using its nominated advisers, as listed on 
page 78, the Company has made considered use of a
greater number of legal advisers selected for their expertise
in certain fields; and has used firms of accountants other
than its auditors to advise on certain matters. During 2003,
following a detailed review of insurance arrangements 
and brokers, the Company appointed AON Limited as its
insurance brokers in the UK and mainland Europe.
Committees
The Board has three permanent committees, in line with
best practice: these are the Audit, Remuneration and
Nomination Committees, each of which has formally
delegated duties and responsibilities. The Board sets the
terms of reference for all committees and reviews these
terms at least annually; the terms of reference for all three
committees having been reviewed and updated in the light 
of provisions of the new Combined Code in January 2004.
The terms of reference of all three Committees are available
on the Company’ s website. The Board believes that the
composition of each of the Committees complies with the
provisions of the new Combined Code, and the membership 
of the Committees was refreshed during the year with the
appointment of Lisa Gordon and John Mellon to the Audit
and Remuneration Committees and the resignation of 
Roger Parry from each.
The Audit Committee comprises Patrick Taylor (Chairman 
of the Committee, who has recent and relevant experience),
Lisa Gordon (since 12 September 2003), John Mellon 
(since 12 September 2003) and Michael Penington. Roger
Parry resigned from the Committee on 12 September 2003.
The members of the Audit Committee are considered by the
Board to be independent. The Audit Committee met three
times during 2003 and all members were present at each
meeting with the exception of Roger Parry being absent for
one meeting. The Committee’ s terms of reference cover the
points recommended by the new Combined Code, and 
it is, inter alia, responsible for:
– Reviewing the operation of internal controls.
– Reviewing the measurement and reporting of the financial
performance of the Group.
– Reviewing financial statements before publication and
making recommendations to the Board on the
appointment of the external auditors.
– Reviewing the scope and results of the auditors’ work,
their independence and objectivity, and the audit fee. 
The Finance Director and other members of the financial
management team attend by invitation. The Group’ s auditors
attend each meeting and the Audit Committee considers
reports from the Finance Director and from the auditors. 
The Audit Committee meets with the auditors without the
presence of executive Directors at least once each year. 
The Remuneration Committee comprises Michael Penington
(Chairman of the Committee), Patrick Taylor, Lisa Gordon
(since 12 September 2003) and John Mellon (since 
12 September 2003) and determines the remuneration
packages of the executive Directors, including their
performance-related awards; and of the Chairman. 
In addition, the Committee monitors and recommends
remuneration levels for senior management. Roger Parry
resigned from the Committee on 12 September 2003. 
The Directors’ remuneration report is set out on pages 
33 to 39 and explains the previous membership of the
Committee and the remuneration policies applicable for
2003. The Remuneration Committee met five times during
the year and all members were present at each meeting. 
The Nomination Committee comprises Roger Parry
(Chairman of the Committee), Michael Penington and 
Patrick Taylor. The Committee has responsibility for 
making recommendations to the Board in relation to Board
appointments and succession planning issues. The
Committee met once during the year and all members 
were present at this meeting. For Board appointments
the Nomination Committee will typically use recruitment
agents to search for appropriate candidates. 
The Nomination Committee met with Lisa Gordon and John
Mellon individually prior to recommending and approving
their appointment to the Board. The Committee annually
reviews the time required from a non-executive Director 
to satisfy his or her role and reviews the structure, size 
and performance of the Board as a whole, with a view to
making recommendations to the Board as to any changes
which may be desirable. The Committee recommended 
and approved that John Bowman and Roger Parry should
retire and stand for re-election at the Company’ s 2004
Annual General Meeting in satisfaction of the requirements
set out in Article 14.1 of the Articles of Association.
As a general principle, the Board regularly appoints a sub-
committee consisting of at least two Directors in order 
to finalise and approve particular matters if they have been
approved in principle by the Board and are subject only to
final amendments. 
During the year, the Board also appointed a permanent 
sub-committee of at least two Directors to approve 
the issue and allotment of new shares in satisfaction 
of employee share option exercises. 
41 The Future Network plc Annual Report 2003 Internal control framework
The Directors acknowledge their responsibility for the
systems of internal control established by the Group and 
for reviewing their effectiveness. The control structure is
designed to manage rather than to eliminate business risks,
and can provide only reasonable and not absolute assurance
against material misstatement or loss. The Board has taken
further steps during the year, which are detailed below, to
enable it to comply with the new Combined Code.
Board meetings take place a minimum of six times per year 
and all Directors are provided in advance, with written packs of
Board papers containing papers for decision, papers for
discussion and others for information. Board packs are usually
circulated one week in advance of Board meetings to allow
proper time for consideration. The same process of issuing
packs of information applies to Committee meetings. 
All new Directors receive an induction regarding the Group 
on joining the Board and the Company provides or pays
for appropriate training for Directors on an ongoing basis.
As in the previous year, the Board was also provided each
month with a timely written report on trading and other
business issues, accompanied by financial information
analysing the previous month’ s trading and key performance
indicators. Management accounts are reviewed monthly
against both prior year and budget figures. By this means,
all Directors are kept aware of business developments 
and trends as they occur. These reports are subsequently
discussed at formal Board meetings. 
Executive Directors meet each week and discuss key
business matters. They pay close attention to operational
matters and areas of business development; and also to
foreseeable business which requires approval by the full
Board. In this connection there is a formal List of Matters
Reserved for Decision by the Board. The list includes
approval of interim and annual results, the Group’ s budget,
shareholder circulars, major investments or financial
commitments, magazine launches if the net loss to be
incurred in the first year is planned to exceed £500,000,
share incentive schemes, acquisitions and disposals of
trading businesses and dividend policy.
During 2002, a full review of the Group’ s treasury functions
was carried out. After discussion with the Board, changes
were made to treasury policy; local banks were changed in
two overseas territories; and a new Group treasury manual
was issued in order to increase the efficiency of this
important aspect of internal financial control. 
In 2003, a number of Group policies and procedures were
implemented or updated, and the Group has adopted an
ongoing system of Network Control Documents which are
developed by Group finance staff following consultation 
with finance staff in subsidiary operations and Group legal.
Group legal staff have carried out a review of the Group’s
more significant legal contracts; the potential exposure
arising from such contracts; and a review of terms and
conditions of business. An IT acceptable use policy was
implemented in the UK during the year and this is being
extended across the Group. 
Monthly finance review meetings are held with each
operating subsidiary in order to provide a proper opportunity
for financial results and other business and operational
issues to be explored and addressed. During the year 2003,
many important issues were reviewed and progressed.
Group management make regular visits to overseas
subsidiaries to review financial and business matters. 
The Group has continued to review its risk management
procedures, including the implementation of a UK business
continuity plan. A review of insurance brokers was carried
out during the year and, as stated above, AON was appointed
as new broker to review the Group’ s existing insurance
policies. Following such review, a number of new policies
were implemented and improvements in cover were made.
Ensuring that the Group employs management of suitable
experience and calibre is critical to both achievement of
commercial success and management of business risk. Senior
management in each territory is continually assessed and
reviewed and the Managing Directors of each subsidiary of the
Company present to the full Board at least once per year .
Results of the Board’s annual review of internal controls
The Board has conducted an annual review for 2003 as 
to the effectiveness of its system of internal control. It has
concluded that significant assurance can be drawn from 
the existing systems, which have developed further during
the year. As a result the Board considers that it fully
complied with the Turnbull recommendations for all of the
year 2003 and that it has taken the steps necessary 
to comply with the provisions of the new Combined Code.
Internal audit function
During the year 2003 the Audit Committee and the Board
each reconsidered the need for an internal audit function and
concluded that an independent internal audit department with
the necessary technical and language skills is not justified
by the current size of the Group.
The Board’ s preference has been to ensure that the Group
allocates sufficient time and resources to manage the many
business risks faced by the Group, including but not limited 
to financial risks. The Board continues to embed this important
aspect of corporate governance within the operating Boards
of the four countries, as well as the parent company Board.
Directors’ responsibilities for the preparation of 
financial statements
The Directors are required by law to prepare financial
statements for each financial year which give a true and fair
view of the state of affairs of the Company and of the Group
as at the end of the financial year and of the profit or loss 
of the Group for that year. In preparing those financial
statements, the Directors are required to:
– Select suitable accounting policies and then apply 
them consistently.
– Make judgements and estimates that are reasonable 
and prudent.
– State whether applicable accounting standards have been
followed, subject to any material departures disclosed
and explained in the financial statements.
Corporate
governance
report
continued 
42 The Future Network plc Annual Report 2003 The Directors confirm that they have complied with these
requirements in preparing the financial statements.
The Directors are responsible for the keeping of proper
accounting records, which disclose with reasonable accuracy
at any time the financial position of the Company and the
Group and enable them to ensure that the financial
statements comply with the Companies Act 1985. They are
also responsible for the safeguarding of the assets of the
Company and of the Group, and for the taking of reasonable
steps to prevent and detect fraud and other irregularities.
The Directors are also responsible for the maintenance and
integrity of the Group’s website. Information published 
on the Internet is accessible in many countries with different
legal requirements. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Relations with shareholders
The majority of the Company’ s shares are held by institutions,
with the remainder held by private shareholders. There 
is a regular dialogue with shareholders through a planned
programme of investor relations which includes formal
presentations of the Group’s half year and annual results 
by the executive Directors. The Company’s website,
www.thefuturenetwork.plc.uk contains up-to-date information
on the Group’ s activities and the investor relations section
includes a full copy of the annual results, powerpoint
presentations provided to analysts, and an audio recording of
the most recent such presentation made by executive Directors.
Group management also meets with institutional investors
and analysts on a regular basis, except during close periods
(the period of two months preceding announcement of half-
year and annual results) and there is regular communication
with all shareholders through the Interim and Annual Reports.
The Chairman and Senior Independent Director have, in
accordance with the provisions of the new Combined Code,
considered the need to make themselves available to
shareholders. During the most recent round of shareholder
meetings with executive Directors, it has been emphasised
that both the Chairman and Senior Independent Director
would be pleased to meet with shareholders on request; but
the Board’ s view at present is that no formal schedule of
regular meetings with the Chairman and Senior Independent
Director is either necessary or desirable. Any shareholder
who would like to meet with the Chairman or the Senior
Independent Director is invited to contact the Chairman or
Senior Independent Director, as appropriate. 
In order that all Directors are aware of the views of
shareholders, any such views from meetings held by
Director(s) with shareholders or reported to the Directors
through the Company’ s brokers, together with copies of
analysts notes, press articles and other relevant information
are included in Board packs.
All Directors are required to be present at the Company’s
Annual General Meeting.
Going concern basis
The Directors are satisfied that the Company and the 
Group have adequate resources to continue in operational
existence for the foreseeable future. For this reason 
they have adopted the going concern basis in preparing the
financial statements.
Auditors’ responsibilities
Auditors’ responsibilities in relation to the financial
statements are included in the Independent Auditors’ Report
to the members of The Future Network plc on page 44.
Auditors’ fees
The Audit Committee has reviewed the remuneration
received by PricewaterhouseCoopers LLP for non-audit work. 
The fees for non-audit work largely comprise work in respect
of taxation and due diligence carried out on acquisitions. 
The Audit Committee has concluded that no conflict of
interest exists between PricewaterhouseCoopers LLP audit 
and non-audit work and that their involvement was the 
most effective way of conducting the Group’s business
during the last year. 
Approved by the Board of Directors 
and signed on its behalf by:
Mark Millar 
Company Secretary
10 March 2004
43 The Future Network plc Annual Report 2003 Independent Auditors’ report to the members of 
The Future Network plc
We have audited the financial statements which comprise
the Group profit and loss account, the Group balance sheet,
the Company balance sheet, the Group cash flow statement,
the Group statement of total recognised gains and losses,
the Group reconciliation of movement in shareholders’
funds, the accounting policies and the related notes. 
We have also audited the disclosures required by Part 3 
of Schedule 7A to the Companies Act 1985 contained in 
the Directors’ remuneration report (‘the auditable part’).
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual
Report and the financial statements in accordance with
applicable United Kingdom law and accounting standards
are set out in the statement of Directors’ responsibilities.
The Directors are also responsible for preparing the
Directors’ remuneration report.
Our responsibility is to audit the financial statements and
the auditable part of the Directors’ remuneration report in
accordance with relevant legal and regulatory requirements
and United Kingdom Auditing Standards issued by the
Auditing Practices Board. This report, including the opinion,
has been prepared for and only for the Company’ s members
as a body in accordance with Section 235 of the Companies
Act 1985 and for no other purpose. We do not, in giving 
this opinion, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly
agreed by our prior consent in writing.
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the
financial statements and the auditable part of the Directors’
remuneration report have been properly prepared in
accordance with the Companies Act 1985. We also report to
you if, in our opinion, the Directors’ report is not consistent
with the financial statements, if the Company has not 
kept proper accounting records, if we have not received all
the information and explanations we require for our audit,
or if information specified by law regarding Directors’
remuneration and transactions is not disclosed.
We read the other information contained in the Annual Report
and consider the implications for our report if we become aware
of any apparent misstatements or material inconsistencies
with the financial statements. The other information comprises
only the Directors’ report, the unaudited part of the Directors’
remuneration report, the Chairman’ s statement, the operating
and financial review and the corporate governance report. 
We review whether the corporate governance report reflects
the Company’s compliance with the seven provisions of 
the Combined Code specified for our review by the Listing
Rules of the Financial Services Authority, and we report 
if it does not. We are not required to consider whether the
Board’s statements on internal control cover all risks 
and controls, or to form an opinion on the effectiveness 
of the Group’s corporate governance procedures or its 
risk and control procedures. 
Basis of audit opinion
We conducted our audit in accordance with auditing
standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant 
to the amounts and disclosures in the financial statements
and the auditable part of the Directors’ remuneration report.
It also includes an assessment of the significant estimates
and judgements made by the Directors in the preparation 
of the financial statements, and of whether the accounting
policies are appropriate to the Company’ s circumstances,
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all 
the information and explanations which we considered
necessary in order to provide us with sufficient evidence 
to give reasonable assurance that the financial statements
and the auditable part of the Directors’ remuneration report
are free from material misstatement, whether caused 
by fraud or other irregularity or error. In forming our opinion
we also evaluated the overall adequacy of the presentation
of information in the financial statements.
Opinion
In our opinion:
– The financial statements give a true and fair view of 
the state of affairs of the Company and the Group at
31 December 2003 and of the profit and cash flows of 
the Group for the year then ended.
– The financial statements have been properly prepared 
in accordance with the Companies Act 1985.
– Those parts of the Directors’ remuneration report
required by Part 3 of Schedule 7A to the Companies Act
1985 have been properly prepared in accordance with 
the Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
Bristol
10 March 2004
Independent
auditors’ report 
to the members
of The Future
Network plc
44 The Future Network plc Annual Report 2003 46 Group profit and loss account
47 Group statement of total
recognised gains and losses
47 Group reconciliation of movements
in shareholders’ funds
48 Group balance sheet
49 Company balance sheet
50 Group cash flow statement
51 Notes to the Group cash 
flow statement
52 Accounting policies
54 Notes to the financial statements
75 FTSE Media and Entertainment 
Sector Index (UK companies)
76 Notice of Annual General Meeting
78 Registered office and advisers
79 Shareholder information
80 2004 timetable
Financial
statements
45 The Future Network plc Annual Report 2003 46 The Future Network plc Annual Report 2003
2003 2002
Note £m £m
Turnover
Continuing operations 1 174.9 165.3
Acquisitions 1 7.8 –
1 182.7 165.3
Operating profit/(loss)
Continuing operations
Operating profit before amortisation of intangible assets 
and other operating income 22.3 18.2
Amortisation of intangible assets 2, 9 (10.4) (10.3)
Other operating income 2 – 2.2
11.9 10.1
Acquisitions
Operating profit before amortisation of intangible assets 0.2 –
Amortisation of intangible assets 2, 9 (2.6) –
(2.4) –
Operating profit 2 9.5 10.1
Profit on disposal of fixed asset investments 0.1 0.3
Profit on ordinary activities before interest 9.6 10.4
Net interest receivable and similar items 5 0.1 0.3
Profit on ordinary activities before tax 1 9.7 10.7
Tax on profit on ordinary activities 6 (7.0) (4.5)
Profit for the financial year 22 2.7 6.2
Dividend proposed 7,22 (4.0) –
Retained (loss)/profit for the financial year (1.3) 6.2
Earnings per 1 pence Ordinary share 
2003 2002
pence pence
Basic earnings per share 8 0.8 1.9
Adjusted basic earnings per share 8 4.9 4.4
Diluted earnings per share 8 0.8 1.9
Adjusted diluted earnings per share 8 4.8 4.4
Group profit and
loss account
for the year ended 
31 December 2003 Group statement
of total
recognised gains
and losses
for the year ended 
31 December 2003
47 The Future Network plc Annual Report 2003
Group
reconciliation 
of movements 
in shareholders’
funds
for the year ended 
31 December 2003
2003 2002
Note £m £m
Profit for the financial year 22 2.7 6.2
Dividend proposed 7 (4.0) –
Retained (loss)/profit for the financial year (1.3) 6.2
Net exchange adjustments offset in reserves 22 0.8 0.4
Tax on exchange adjustments offset in reserves 22 0.1 (0.6)
Total recognised (loss)/gain relating to the year (0.4) 6.0
2003 2002
Note £m £m
Profit for the financial year 22 2.7 6.2
Dividend proposed 7 (4.0) –
Retained (loss)/profit for the financial year (1.3) 6.2
Premium on shares issued during the year 21 0.3 –
Net exchange adjustments offset in reserves 22 0.8 0.4
Tax on exchange adjustments offset in reserves 22 0.1 (0.6)
Net movement in shareholders’ funds (0.1) 6.0
Opening equity shareholders’ funds 112.0 106.0
Equity shareholders’ funds as at 31 December 111.9 112.0 2003 2002
Note £m £m
Fixed assets
Intangible assets 9 117.3 108.6
Tangible assets 10 3.3 3.2
120.6 111.8
Current assets
Stocks 12 3.5 3.6
Debtors 13 42.4 33.3
Investments 11 8.8 6.2
Cash at bank and in hand 11.3 12.4
66.0 55.5
Creditors: amounts falling due within one year 14 (73.0) (49.7)
Net current (liabilities)/assets (7.0) 5.8
Total assets less current liabilities 113.6 117.6
Creditors: amounts falling due after more than one year 15 – (2.5)
Provisions for liabilities and charges 17 (1.7) (3.1)
Net assets 111.9 112.0
Capital and reserves
Called-up share capital 19 3.2 3.2
Share premium account 21 0.2 169.6
Merger reserve 23 109.0 109.0
Other reserves 23 21.8 21.8
Profit and loss account 22 (22.3) (191.6)
Equity shareholders’ funds 111.9 112.0
Approved by the Board of Directors on 10 March 2004 and signed on its behalf by:
R Parry J Bowman
Chairman Group Finance Director
Group 
balance sheet
as at 31 December 2003
48 The Future Network plc Annual Report 2003 2003 2002
Note £m £m
Fixed assets
Investments 11 0.1 20.2
0.1 20.2
Current assets
Debtors 13 192.4 163.1
Investments 11 8.8 6.2
Cash at bank and in hand 6.7 5.6
207.9 174.9
Creditors: amounts falling due within one year 14 (73.4) (59.2)
Net current assets 134.5 115.7
Total assets less current liabilities 134.6 135.9
Net assets 134.6 135.9
Capital and reserves
Called-up share capital 19 3.2 3.2
Share premium account 21 0.2 169.6
Other reserves 23 21.8 21.8
Profit and loss account 22 109.4 (58.7)
Equity shareholders’ funds 134.6 135.9
Approved by the Board of Directors on 10 March 2004 and signed on its behalf by:
R Parry J Bowman
Chairman Group Finance Director
Company 
balance sheet
as at 31 December 2003
49 The Future Network plc Annual Report 2003 2003 2002
£m £m
Net cash inflow from operating activities 22.6 27.0
Returns on investments and servicing of finance
Interest received 0.6 0.3
Interest paid (0.4) (1.3)
Net cash inflow/(outflow) from returns on investments and servicing of finance 0.2 (1.0)
Tax
Tax paid (8.2) (3.2)
Tax received 1.5 1.8
Net tax paid (6.7) (1.4)
Capital expenditure and financial investment
Purchase of tangible fixed assets (1.4) (0.7)
Sale of tangible fixed assets – 0.6
Sale of fixed asset investments 0.1 0.3
Net cash (outflow)/inflow from capital expenditure and financial investment (1.3) 0.2
Acquisitions and disposals
Purchase of subsidiary undertakings (7.0) –
Net cash acquired with subsidiary undertakings 0.5 –
Purchase of magazine titles (11.8) –
Purchase of subscription lists (0.1) (0.1)
Payment of deferred consideration (0.7) (0.7)
Net cash outflow for acquisitions and disposals (19.1) (0.8)
Management of liquid resources
Increase in short-term deposits with bank (2.6) (2.7)
Net cash outflow in management of liquid resources (2.6) (2.7)
Net cash (outflow)/inflow before financing (6.9) 21.3
Financing
Proceeds from issue of Ordinary share capital 0.3 –
Draw down of bank loans 6.3 –
Movement on discounted bills – (0.2)
Movement in other loans (0.1) 0.1
Repayment of bank loans (0.6) (18.9)
Net cash inflow/(outflow) from financing 5.9 (19.0)
(Decrease)/increase in cash in the year (1.0) 2.3
Group cash flow
statement
for the year ended 
31 December 2003
50 The Future Network plc Annual Report 2003 A. Cash flow from operating activities
The reconciliation of operating profit to net cash inflow from operating activities is as follows:
2003 2002
£m £m
Operating profit 9.5 10.1
Depreciation charge 1.4 1.4
Amortisation of intangible assets 13.0 10.3
Movement in provisions (1.7) (1.5)
Decrease/(increase) in stocks 0.2 (0.3)
(Increase)/decrease in debtors (7.5) 8.3
Increase/(decrease) in creditors 7.7 (1.3)
Net cash inflow from operating activities 22.6 27.0
B. Analysis of net cash
Other
At 1 January non-cash Exchange At 31 December 
2003 Cash flow changes movements 2003
£m £m £m £m £m
Cash at bank and in hand 12.4 (1.0) – (0.1) 11.3
Debt due after one year (1.8) 0.1 1.7 – –
Debt due within one year – (5.7) (1.7) 0.7 (6.7)
Liquid resources 6.2 2.6 – – 8.8
Net cash 16.8 (4.0) – 0.6 13.4
C. Reconciliation of movement in net cash
2003 2002
£m £m
Net cash/(debt) at 1 January 16.8 (7.8)
(Decrease)/increase in cash (1.0) 2.3
Movement in deposits 2.6 2.7
Movement in borrowings (5.6) 19.0
Amortisation of bank finance costs – (0.1)
Exchange movements 0.6 0.7
Net cash at 31 December 13.4 16.8
Notes to the
Group cash 
flow statement
for the year ended 
31 December 2003
51 The Future Network plc Annual Report 2003 52 The Future Network plc Annual Report 2003
Accounting
policies
Basis of preparation of accounts
The accounts have been prepared under the historical cost
convention, and in accordance with accounting standards
applicable in the United Kingdom. The principal accounting
policies have been consistently applied.
Basis of consolidation
The consolidated accounts comprise the Company and 
all of its subsidiary undertakings. The principal operating
subsidiary undertakings are listed in note 28 to the
accounts. The results of subsidiary undertakings are
consolidated from the effective date of acquisition and
businesses sold are included up to the date of disposal.
Interests in associated companies are included in 
the consolidated accounts using the equity method 
of accounting.
Intangible assets
On acquisition of a subsidiary, associated undertaking or
business, the purchase consideration is allocated between
the underlying net assets on a fair value basis, with any
excess purchase consideration representing goodwill. The
purchase consideration is stated at fair value. Purchased
goodwill is capitalised and amortised on a straight-line
basis over the estimated useful life of each acquisition.
Internally developed goodwill and other intangible assets
are not capitalised. 
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated
depreciation. No depreciation is provided on freehold land. 
For other tangible fixed assets depreciation is calculated 
to write down the cost of the tangible fixed assets to their
estimated residual values by equal annual instalments over
the period of their estimated useful lives, which are
considered to be:
Freehold buildings – 50 years
Leasehold properties – 50 years or period 
and improvements of the lease if shorter
Plant and machinery – between one and five years
Equipment, fixtures – between one and five years
and fittings
Impairment of fixed assets 
Fixed assets including goodwill are reviewed to determine
whether their value appears to have been impaired. Where 
a fixed asset has been impaired, the impairment is charged
to the profit and loss account, and the asset is carried at its
recoverable amount.
Investments
Investments in subsidiary undertakings are stated at 
the fair value of consideration payable including related
acquisition costs. Other fixed asset and short-term
investments are stated at the lower of cost and net
realisable value. 
Foreign currencies
Transactions in foreign currencies are recorded at the 
rate of exchange ruling at the date of the transaction, or
where forward exchange contracts have been arranged,
at the contracted rate. Monetary assets and liabilities
denominated in foreign currencies, where a contract rate
does not apply, are translated at the exchange rates ruling
at the balance sheet date, and any exchange differences 
are taken to the profit and loss account.
Profits and losses of overseas subsidiaries that have
currencies of operation other than Sterling are translated
into Sterling at average rates of exchange ruling during 
the period, except for material items that are translated at
the rate ruling at the date of transaction. Differences
between the profit and loss accounts translated at average
rates and at balance sheet rates are shown as a movement
on reserves and in the statement of total recognised gains 
and losses. 
Where practicable, the Group’ s overseas equity investments
are financed by borrowings in the currencies in which those
assets are denominated. Exchange differences arising from
the retranslation of overseas net investments, including
goodwill and any related loans together with the related tax
effect, are dealt with through reserves and the statement of
total recognised gains and losses to the extent permitted
under SSAP20. Other exchange differences are taken to the
profit and loss account.
Financial instruments
Derivative financial instruments are used by the Group to
reduce exposure to foreign exchange and interest rate risks.
A derivative instrument is considered to be used for hedging
purposes when it alters the risk profile of an existing
underlying exposure of the Group.
Payments and receipts under any interest rate swaps are
accrued within net interest payable. The swaps are not
revalued to fair value or shown in the Group balance sheet
at the year end unless the exposure which they were
hedging no longer exists or the swaps are no longer
considered necessary by reference to the stated policy 
of the Board. 53 The Future Network plc Annual Report 2003
Stocks and work in progress
Stocks and work in progress are stated at the lower of cost
and net realisable value. For raw materials, cost is taken to
be the purchase price. For work in progress and finished
products cost is calculated as the direct cost of production.
Turnover
Turnover is the amount derived from the provision of goods
and services falling within the Group’ s ordinary activities
after deduction of trade discounts, provision for returns and
value added taxes. The circulation and advertising turnover
relating to a magazine issue is recognised with effect from
the date that the issue goes on sale. 
Deferred Income
Subscription payments received are held in the balance
sheet and recognised in the profit and loss account on
publication of each related issue.
Leases
Rentals under operating leases are charged to the profit and
loss account on a straight-line basis over the lease term.
When a leasehold property ceases to be used in 
the business, provision is made to the extent that the
recoverable amount of the interest in the property is
expected to be insufficient to cover future obligations
relating to the lease.
Capitalisation of finance costs and interest
All borrowings are initially stated at the fair value of the
consideration received after deduction of issue costs. Issue
costs together with finance costs are charged to the profit
and loss account over the terms of the borrowings and
represent a constant proportion of the capital repayments
outstanding. Accrued finance costs attributable to
borrowings where the maturity at the date of issue is less
than 12 months are included in the accrued charges within
current liabilities. For all other borrowings, accrued finance
charges and issue costs are added to the carrying value of
those borrowings.
Development and subscription costs
Launch, development and subscription costs are written off
in full as incurred.
Pensions
Contributions payable in respect of defined contribution
schemes are charged to the profit and loss account as they
are incurred.
Deferred tax
Deferred tax is provided in full on all material timing
differences. Deferred tax assets are recognised when their
recovery is considered more likely than not. Deferred tax
assets and liabilities are not discounted.
Share schemes
When an employee is granted options to subscribe for
shares, any difference between the fair value of those
shares at the date the grant is made and the option price
payable by the employee is charged to the profit and loss
account over the period from the date of grant to the date 
at which the employee becomes unconditionally entitled 
to the shares. 
The only exception to this is in respect of options granted
under the Future Network plc UK Inland Revenue Approved
Sharesave Plan. Under this plan options may be granted 
at a discount of 20% to the market price. In line with UITF17
this discount is not charged to the profit and loss account.
Employer taxes on options and share-related benefits are
accrued over the performance period of the option in
accordance with UITF25: ‘National Insurance contributions
on share option gains’. 1. Segmental reporting
The Group is involved in one class of business, the publication of magazines. The analysis of turnover by type, geographical
analyses of turnover, profit/(loss) before tax, and net assets by origin were as follows:
a) Turnover by type
Acquisitions Continuing Total Total 
2003 operations 2003 2002 
£m £m £m £m
Circulation 5.6 119.9 125.5 111.9
Advertising 2.1 50.9 53.0 48.6
Other 0.1 4.1 4.2 4.8
Total 7.8 174.9 182.7 165.3
b) Turnover by origin
Acquisitions Continuing Total Total 
2003 operations 2003 2002 
£m £m £m £m
United Kingdom 0.3 100.0 100.3 97.1
United States 2.1 44.1 46.2 40.5
Mainland Europe 5.4 33.2 38.6 29.5
Turnover between segments – (2.4) (2.4) (1.8)
Total 7.8174.9182.7 165.3
c) Turnover by destination
Acquisitions Continuing Total Total 
2003 operations 2003 2002 
£m £m £m £m
United Kingdom 0.3 83.2 83.5 82.6
United States 1.9 45.6 47.5 40.5
Mainland Europe 5.4 39.5 44.9 35.1
Rest of the world 0.2 9.0 9.2 8.9
Turnover between segments – (2.4) (2.4) (1.8)
Total 7.8 174.9 182.7 165.3
d) Profit/(loss) on ordinary activities before tax by origin
Total Total 
2003 2002 
£m £m
United Kingdom 12.4 14.2
United States 4.1 2.3
Mainland Europe (3.3) (3.4)
Central costs (3.5) (2.4)
Total 9.7 10.7
e) Net assets by origin
Total Total 
2003 2002 
£m £m
United Kingdom 86.3 91.0
United States 20.7 11.7
Mainland Europe 11.6 11.1
Interest-bearing liabilities (6.7) (1.8)
Total 111.9 112.0
Notes to 
the financial
statements
54 The Future Network plc Annual Report 2003 2. Operating (loss)/profit
Continuing Total Total 
Acquisitions operations 2003 2002 
£m £m £m £m
Turnover 7.8 174.9 182.7 165.3
Cost of sales (6.4) (109.6) (116.0) (103.2)
Gross profit 1.4 65.3 66.7 62.1
Distribution expenses (0.5) (11.5) (12.0) (10.4)
Administration expenses (0.7) (31.5) (32.2) (33.5)
Amortisation of intangible assets (2.6) (10.4) (13.0) (10.3)
Other operating income ––– 2.2
Total administration expenses (3.3) (41.9) (45.2) (41.6)
Operating (loss)/profit (2.4) 11.9 9.5 10.1
2003 2002 
£m £m
Profit on ordinary activities before tax is stated after charging/(crediting):
Staff costs (note 4) 37.2 36.0
Depreciation of owned assets (note 10) 1.4 1.4
Amortisation of intangible assets (note 9) 13.0 10.3
Hire of machinery and equipment 0.3 0.2
Other operating lease rentals 3.4 2.5
Other operating income (see below) – (2.2)
Net exchange gain on foreign currency borrowings less deposits (0.1) (0.9)
Other operating income in 2002 represents a refund received from HM Customs and Excise in the UK in respect of VAT
overpaid in years prior to 2001.
3. Fees paid to auditors
2003 2002 
£m £m
Audit services
– statutory audit 0.2 0.2
– other audit and related regulatory reporting 0.2 –
Further assurance services 0.1 –
Tax services
– compliance services 0.1 0.2
– advisory services 0.2 0.3
Total 0.8 0.7
The audit fee for the Company included within the Group fee was £42,500 (2002: £47,500). 
55 The Future Network plc Annual Report 2003 4. Employees and Directors
2003 2002 
Staff costs £m £m
Wages and salaries 31.2 30.9
Social security costs 5.3 4.5
Other pension costs (note 25) 0.7 0.6
Total 37.2 36.0
Average monthly number of people (including executive Directors) 
Production 682 649
Administration 326 315
Total 1,008 964
At 31 December 2003 the actual number of people employed by the Group was 1,033 (2002: 934).
Further details on Directors’ remuneration and interests are given in the Directors’ remuneration report on pages 33 to 39.
The highest paid director for the year was Colin Morrison (2002: Greg Ingham) and details of his remuneration are shown on
page 37. These disclosures form part of the financial statements. 
5. Net interest receivable and similar items
2003 2002 
£m £m
Interest payable on bank loans and overdrafts (0.2) (0.4)
Amortisation of issue costs of bank loan – (0.1)
Other interest payable (0.2) (0.1)
Amortisation of discount relating to property provisions (0.1) (0.2)
Amortisation of discount arising on fair valuing of deferred consideration (0.1) (0.1)
Total interest payable and similar charges (0.6) (0.9)
Interest receivable 0.6 0.3
Exchange gains 0.1 0.9
Total interest receivable and similar items 0.7 1.2
Net interest receivable and similar items 0.1 0.3
Notes to 
the financial
statements
continued
56 The Future Network plc Annual Report 2003 6. Tax on profit on ordinary activities
a) Analysis of tax charge in the year
2003 2002 
£m £m
UK corporation tax at 30% (2002: 30%) on profits for the year 3.9 4.8
Adjustments in respect of previous years 0.3 –
4.2 4.8
Overseas taxes 3.3 1.1
Adjustments in respect of previous years (0.8) (0.8)
Total current tax 6.7 5.1
Deferred tax origination and reversal of timing differences
– Current year charge/(credit) 0.7 (0.8)
– Prior year (credit)/charge (0.4) 0.2
Tax on profit on ordinary activities 7.0 4.5
b) Factors affecting the tax charge for the year
The tax assessed in each year differs from the standard rate of corporation tax in the UK for the relevant year. 
The differences are explained below:
2003 2002 
£m £m
Profit on ordinary activities before tax 9.7 10.7
Profit on ordinary activities at the standard UK tax rate of 30% 2.9 3.2
Different tax rate applicable overseas 0.6 0.7
Expenses not deductible for tax purposes 0.1 0.6
Goodwill amortisation and impairment not deductible for tax purposes 2.9 2.4
Timing differences relating to goodwill amortisation deductible 0.1 –
Overseas losses generated 0.8 0.5
Capital allowances in excess of depreciation (0.2) (0.4)
Other timing differences – (1.1)
Impact of adjustment to prior year current tax (0.5) (0.8)
Current tax charge for the year 6.7 5.1
c) Factors that may affect future tax charges
The main factors that will impact future tax charges for the Group are:
i) The relative profitability and the differential in tax rates between the UK and the US, the two main territories in which the
Group currently pays tax.
ii) The profitability of Mainland Europe where there are significant unrecognised tax losses.
iii) The timing of any successful resolution of certain steps that the Group has taken to obtain value from its historical 
tax losses.
57 The Future Network plc Annual Report 2003 7. Dividends
Equity dividends 2003 2002 
Number of shares in issue (million) 322.5 321.1
Final dividend proposed (pence per share) 1.25 –
Dividend proposed (£ million) 4.0 –
8. Earnings per share
Basic earnings per share are calculated using the weighted average number of Ordinary shares outstanding during the year.
Diluted earnings per share have been calculated by taking into account the dilutive effect of shares that would be issued on
conversion into Ordinary shares of options held under employee share schemes.
The adjusted earnings per share removes the effect of the amortisation of intangible assets and other operating income 
from the calculation as follows:
2003 2002
Adjustments to profit on ordinary activities after tax £m £m
Profit on ordinary activities after tax 2.7 6.2
Add: amortisation of intangible assets 13.0 10.3
Less: other operating income – (2.2)
Adjusted profit on ordinary activities after tax 15.7 14.3
2003 2002
Weighted average number of shares outstanding during the period: 
– basic 321,564,888 320,674,470
– dilutive effect of share options 1,453,980 1,818,424
– diluted 323,018,868 322,492,894
Basic earnings per share (in pence) 0.8 1.9
Adjusted basic earnings per share (in pence) 4.9 4.4
Diluted earnings per share (in pence) 0.8 1.9
Adjusted diluted earnings per share (in pence) 4.8 4.4
The adjustments to profit have the following effects on earnings per share:
2003 2002
pence pence
Basic earnings per share 0.8 1.9
Amortisation of intangible assets 4.1 3.2
Other operating income – (0.7)
Adjusted basic earnings per share 4.9 4.4
Diluted earnings per share 0.8 1.9
Amortisation of intangible assets 4.0 3.2
Other operating income – (0.7)
Adjusted diluted earnings per share 4.8 4.4
58 The Future Network plc Annual Report 2003
Notes to 
the financial
statements
continued 9. Intangible fixed assets
Goodwill
Group £m
Cost 
At 1 January 2003 299.3
Additions 21.8
Exchange adjustments 0.2
At 31 December 2003 321.3
Amortisation
At 1 January 2003 (190.7)
Charge for the year (13.0)
Exchange adjustments (0.3)
At 31 December 2003 (204.0)
Net book amount at 31 December 2003 117.3
Net book amount at 31 December 2002 108.6
The goodwill arising on acquisitions is being amortised on a straight-line basis over the estimated useful economic lives 
of the acquired businesses, being in the range one to 20 years. These periods are the periods over which the Directors
estimate that the values of the underlying businesses acquired are expected to exceed the values of the underlying assets.
Further details of the acquisitions during the year are given in note 24.
10. Tangible fixed assets
Equipment,
Land and Plant and fixtures and 
buildings machinery fittings Total
Group £m £m £m £m
Cost 
At 1 January 2003 1.9 5.1 2.4 9.4
Reclassification 0.4 0.9 (1.3) –
Additions –1.30.11.4
Disposals (0.1) (1.2) (0.2) (1.5)
Exchange adjustments – – 0.2 0.2
At 31 December 2003 2.2 6.1 1.2 9.5
Depreciation
At 1 January 2003 (0.5) (3.9) (1.8) (6.2)
Reclassification (0.1) (0.3) 0.4 –
Charge for the year (0.1) (1.1) (0.2) (1.4)
Disposals 0.1 1.2 0.2 1.5
Exchange adjustments (0.1) (0.4) 0.4 (0.1)
At 31 December 2003 (0.7) (4.5) (1.0) (6.2)
Net book value at 31 December 2003 1.5 1.6 0.2 3.3
Net book value at 31 December 2002 1.4 1.2 0.6 3.2
Analysis of net book value of land and buildings
Group Group
2003 2002
£m £m
Leasehold:
Over 50 years unexpired 1.3 1.4
Under 50 years unexpired 0.2 –
Total 1.5 1.4
59 The Future Network plc Annual Report 2003 11. Investments
a) Fixed asset investments
2003 2002
Company £m £m
Shares in Group undertakings 
At 1 January 20.2 20.8
Additions in year 0.1 –
Disposals in the year (20.2) (0.6)
At 31 December 0.1 20.2
As part of internal reorganisations within the Group in 2002 and 2003, the Company transferred its interests in a former
intermediate holding company and a principal subsidiary to a number of other Group companies.
b) Current asset investments
Group Company Group Company
2003 2003 2002 2002
£m £m £m £m
Short-term bank deposits 8.8 8.8 6.2 6.2
Total 8.8 8.8 6.2 6.2 
12. Stocks
Group Group
2003 2002
£m £m
Raw materials 1.2 1.1
Work in progress 2.2 1.9
Finished goods 0.1 0.6
Total 3.5 3.6
13. Debtors
Group Company Group Company 
2003 2003 2002 2002 
£m £m £m £m
Amounts falling due within one year:
Trade debtors 34.1 – 24.5 –
Amounts owed by Group undertakings – 185.7 – 157.8
Corporation tax recoverable 1.6 – 2.6 –
Other debtors 3.3 6.5 2.4 5.3
Prepayments and accrued income 2.5 0.2 3.0 –
41.5 192.4 32.5 163.1
Amounts falling due after more than one year:
Other debtors (see note 17) 0.9 – 0.8 –
Total 42.4 192.4 33.3 163.1
60 The Future Network plc Annual Report 2003
Notes to 
the financial
statements
continued 14. Creditors: amounts falling due within one year
Group Company Group Company 
2003 2003 2002 2002 
£m £m £m £m
Bank and other borrowings 6.7 – ––
Trade creditors 20.5 – 14.3 –
Amounts owed to Group undertakings – 68.1 – 57.3
Corporation tax 2.7 – 4.0 –
Other creditors including taxation and social security 10.5 – 6.0 –
Accruals and deferred income 27.9 1.3 24.8 1.9
Proposed dividend 4.0 4.0 ––
Deferred consideration for acquisitions 0.7 – 0.6 –
Total 73.0 73.4 49.7 59.2
15. Creditors: amounts falling due after more than one year
Group Company Group Company 
2003 2003 2002 2002 
£m £m £m £m
Bank and other borrowings –– 1.8 –
Deferred consideration for acquisitions –– 0.7 –
Total – – 2.5 –
16. Bank and other borrowings 
Group Company Group Company 
2003 2003 2002 2002 
i) Due within one year £m £m £m £m
Bank loans: secured 5.1 – ––
Other loans: unsecured (note 18) 1.6 – ––
Total 6.7 – ––
Group Company Group Company 
2003 2003 2002 2002 
ii) Due after more than one year £m £m £m £m
Other loans: Unsecured (note 18) –– 1.8 –
Total – – 1.8 –
The bank loans are secured by a fixed charge over The Future Network plc, Future Holdings 2002 Limited, Future Media 
Italy SpA, Future Network USA, Inc, FXM International Limited and Future Publishing Limited’ s land and buildings, intellectual
property and goodwill and a floating charge over the remainder of their assets. 
Further details of the Group’ s borrowings are given in note 18 to the accounts.
61 The Future Network plc Annual Report 2003 17. Provisions for liabilities and charges
Property and
dilapidations Restructuring Total 
Group £m £m £m
At 1 January 2003 2.9 0.2 3.1
Acquisitions – 0.5 0.5
(Release)/charge in the year (0.5) 0.1 (0.4)
Utilised in year (1.1) (0.4) (1.5)
Amortisation of discount 0.1 – 0.1
Exchange adjustments (0.1) – (0.1)
At 31 December 2003 1.3 0.4 1.7
The Company had no provisions for liabilities and charges at 31 December 2003 (2002: £ nil).
Group Group
2003 2002
Deferred tax £m £m
At 31 December 2003 a deferred tax asset has been recognised within other debtors as follows:
Amounts falling due within one year 0.4 0.8
Amounts falling due after more than one year 0.9 0.8
The recognised amount relates to timing differences at 31 December 2003 which are considered more likely than not to
reverse in the foreseeable future and are split as follows:
Group Group
2003 2002
£m £m
Capital allowances 0.8 0.7
Other short term timing differences 0.5 0.9
Total 1.3 1.6
The movement on deferred taxation in the year is as follows:
Group Group
2003 2002
£m £m
As at 1 January 1.6 1.0
Current year (charge)/credit (0.7) 0.8
Prior year credit/(charge) 0.4 (0.2)
At 31 December 1.3 1.6
The unrecognised amounts of deferred taxation assets are as follows:
Group Group
2003 2002
£m £m
Capital allowances – 0.5
Losses 9.8 6.4
Other 2.2 2.3
Total 12.0 9.2
The other short-term timing differences are items that are considered unlikely to be utilised in the foreseeable future.
The Company had no unprovided deferred taxation liabilities at 31 December 2003 (2002: Nil).
62 The Future Network plc Annual Report 2003
Notes to 
the financial
statements
continued 17. Provisions for liabilities and charges continued
Vacant property and dilapidations
Following the reorganisations and significant downsizing which took place in 2001, the Group has obligations under short
leasehold agreements on a number of vacant properties. The provision made represents the following:
i) The best estimate of the discounted future net cash flow arising from the net shortfall on each of the leases held. 
ii) The best estimate of dilapidation obligations on termination of specific leasehold agreements.
At 31 December 2003 the total amount of the provision was £1.3m (2002: £2.9m). The leases against which the provisions
have been made will terminate by December 2017. The provisions have been discounted at a rate in line with the Group’ s
cost of capital.
Restructuring 
The restructuring provisions as at 31 December 2003 relate to restructuring at the Group’ s European subsidiaries.
18. Financial instruments
a) Treasury overview
The Group uses financial instruments to raise funding for its operations and to manage the financial risks arising from those
operations. The agreements governing the principal instruments entered into were approved by the Board.
At the year end, the Group’ s principal financial liabilities comprised £5.1m under its committed revolving multi-currency
facility (2002 : £Nil), £1.6m (2002: £1.8m) in respect of a loan made to Future Network USA, Inc. prior to the Company
acquiring Future Network USA, Inc. in June 1999, £0.7m (2002: £1.3m) deferred consideration payable for acquisitions 
and £1.3m (2002 : £2.9m) for property and dilapidation provisions. The Group had no drawings outstanding on short-term
overdraft facilities at the year end (2002 : £Nil ). 
At the year end, the Group’ s financial assets comprised cash of £11.3m (2002: £12.4m) and short term deposits of £8.8m
(2002: £6.2m). 
The Directors have considered the principal risks arising from the Group’ s financial instruments and have mitigated them 
as follows:
Credit risk 
The Group has a number of authorised counterparties with whom cash balances are held in the countries in which the Group
operates. The Group’ s aim to minimise credit risk is achieved by considering the credit standing of potential bankers before
selecting them. 
Liquidity risk 
The aim of the Group’ s liquidity policy is to provide flexibility. The Group currently has positive net cash balances and a facility
of over £27m.
Market price risk
The Group had disposed of its fixed asset investments as at 31 December 2003.
Interest rate risk 
In September and October 2003 the Group drew down debt under its revolving credit facility to finance its US acquisitions.
However before, on and since that date the Group has had net cash balances. To the extent that debt funding is required
going forward the Board has adopted the following policy:
– To the extent that net debt remains below £10m there is no requirement to hedge against interest rate fluctuations on
the balance of the gross debt.
– To the extent that net debt rises above £10m then a minimum of 25% of the balance of the gross debt and a maximum 
of 50% of the balance of the gross debt should be hedged.
In applying the above policy, management will take full consideration of cash flow projections to fix the period for which any
hedging arrangements are entered into.
63 The Future Network plc Annual Report 2003 18. Financial instruments continued
Currency risk
A proportion of the Group’ s activities are carried out in countries outside the United Kingdom where transactions are carried
out in that country’ s own functional currency. Movements in exchange rates can therefore have a significant impact on the
Group’s total cash flows, whilst the translation of the results, assets and liabilities of foreign subsidiaries into Sterling can
have a significant effect on the Group’ s reported profits and balance sheet. The main exposures are to movements in the 
US Dollar and Euro against Sterling. 
Exchange differences arising from the retranslation of the overseas net investments including goodwill and any related loans
together with the related tax effect are dealt with as movements in reserves and in the statement of total recognised gains or
losses to the extent permitted under SSAP20. Other exchange differences are taken to the profit and loss account.
b) Short-term debtors and creditors
Trading short-term debtors and creditors have been excluded from all the following disclosures, other than the currency
profile of monetary assets and liabilities (table g).
c) Interest rate risk profile of financial liabilities
The interest rate profile of the Group’ s financial liabilities at 31 December 2003 was:
Non interest Floating rate Fixed rate
bearing financial financial financial 
Total liabilities liabilities liabilities 
Currency £m £m £m £m
Sterling 0.3 – 0.3 –
US Dollars 7.7 – 6.1 1.6
Euro 0.7 – 0.7 –
At 31 December 2003 8.7 – 7.1 1.6
Currency
Sterling 1.2 1.0 0.2 –
US Dollars 3.5 – 1.7 1.8
Euro 1.3 – 1.3 –
At 31 December 2002 6.0 1.0 3.2 1.8 
The floating rate financial liabilities include bank borrowings, and deferred consideration, of which the bank borrowings 
bear interest at rates fixed in advance for a period of between 1 and 3 months by reference to LIBOR (in the case of Sterling
and US Dollar borrowings) and EURIBOR (in the case of liabilities denominated in currencies linked to the Euro) plus a 
margin of 1.0%.
The deferred consideration in respect of the Italian acquisition has been discounted at a rate linked to EURIBOR. 
Floating rate financial liabilities also include provisions for property and dilapidation provisions (see note 17) that are
discounted at rates in line with the Group’ s cost of capital.
The fixed rate financial liability reflects the loan made to Future Network USA, Inc. by its previous owner, prior to its
acquisition by the Group, which is denominated in US Dollars and bears interest at 7% per annum.
Weighted 
Weighted average period 
average for which 
interest rate rate is fixed 
Currency % Months
US Dollars 7.00 6.00
The loan is repayable when certain employee share options are exercised. The weighted average period until maturity and 
the maturity of debt are based on the earliest period in which the options are capable of vesting, being the best estimate 
of this information. 
64 The Future Network plc Annual Report 2003
Notes to 
the financial
statements
continued 18. Financial instruments continued
d) Interest rate risk profile of financial assets 
The Group’ s financial assets comprise cash and short-term deposits held by Group companies at 31 December 2003. 
The interest rate profile of these assets at 31 December 2003 was:
Short-term Cash at bank 2003 Short-term Cash at bank 2002
deposits and in hand Total deposits and in hand Total 
Currency £m £m £m £m £m £m
Sterling 7.8 6.6 14.4 6.2 7.3 13.5
US Dollars 0.4 0.9 1.3 – 3.0 3.0
Euro 0.4 3.8 4.2 – 2.0 2.0
Other 0.2 – 0.2 – 0.1 0.1
At 31 December 8.8 11.3 20.1 6.2 12.4 18.6
Non interest bearing –5.3 5.3 – 4.3 4.3
Floating rate 8.8 6.0 14.8 6.2 8.1 14.3
At 31 December 8.8 11.3 20.1 6.2 12.4 18.6
No weighted average information has been disclosed for the non-interest bearing assets above as they have no maturity
dates. The floating rate assets represent monies on short-term deposits at rates linked to LIBID or local equivalent. 
e) Maturity analysis of financial liabilities 
The maturity profile of the carrying value of the Group’ s financial liabilities at 31 December 2003 was as follows:
Other Other
Deferred financial 2003 Deferred Financial 2002 
Debt consideration liabilities Total Debt consideration Liabilities Total 
£m £m £m £m £m £m £m £m
Within one year,
or on demand 6.7 0.7 0.8 8.2 – 0.6 1.6 2.2
Between 
1 and 2 years –– 0.3 0.3 1.8 0.7 0.6 3.1
Between 
2 and 5 years –– 0.2 0.2 – – 0.6 0.6
Over 5 years –––– – – 0.1 0.1
Total 6.7 0.7 1.3 8.7 1.8 1.3 2.9 6.0
The final instalment of deferred consideration of £0.7m (gross of unamortised discount arising from fair valuing of the
deferred consideration) is repayable in May 2004.
f) Maturity analysis of undrawn committed borrowing facilities
The maturity profile of those elements of the Group’ s committed borrowing facilities, all of which are at floating rates, and
£21.7m of which were undrawn, at 31 December 2003 is:
2003 2002 
£m £m
Expiring in more than two years 21.7 28.0
Total 21.7 28.0
The amounts shown above are those that would be available after taking into account covenants given in respect of the
Group’s financial condition. Availability of these funds is subject to covenants to be met at the time of drawdown and
maintained until repayment.
65 The Future Network plc Annual Report 2003 18. Financial instruments continued
g) Currency risk disclosure
The table below shows the extent to which Group companies have monetary assets and liabilities in currencies other 
than their local currency. Foreign exchange differences on retranslation of these assets and liabilities are taken to the profit
and loss account of Group companies. At the Group level they may be taken to reserves and used to offset exchange
gains/losses on net investment in subsidiary companies overseas.
Net foreign currency monetary assets/(liabilities)
Other
Sterling US Dollars Euro currencies Total
2003 £m £m £m £m £m
Sterling – 3.4 2.7 1.9 8.0
US Dollars ––– 0.6 0.6
Euro (1.8) – – – (1.8)
Total (1.8) 3.4 2.7 2.5 6.8
2002
Sterling – (24.3) 5.6 1.4 (17.3)
US Dollars (0.1) – – 0.4 0.3
Euro (2.1) (0.1) – – (2.2)
Total (2.2) (24.4) 5.6 1.8 (19.2)
h) Fair values of financial assets and liabilities
The following table provides a comparison by category of the carrying amounts and the fair values of the Group’ s financial
assets and financial liabilities at 31 December 2003. Fair value is the amount at which a financial instrument could be
exchanged in an arm’ s length transaction between informed and willing parties, other than a forced or liquidation sale and
excludes accrued interest. Where available, market values have been used to determine fair values.
2003 2002 2003 2002
Book value Fair value Book value Fair value 
£m £m £m £m
Primary financial instruments held 
or issued to finance the Group’s operations
Assets:
Short-term deposits 8.8 8.8 6.2 6.2
Cash at bank and in hand 11.3 11.3 12.4 12.4
Liabilities:
Debt 6.7 6.7 1.8 1.8
Deferred consideration 0.7 0.7 1.3 1.3
Other financial liabilities 1.3 1.3 2.9 2.9
The fair value of the fixed and current asset investments reflects the market value of the shares at the balance sheet date.
i) Hedges
During 2003 the Group had no unrecognised gains or losses on hedges in respect of either interest rates or currencies.
66 The Future Network plc Annual Report 2003
Notes to 
the financial
statements
continued 19. Called up share capital
Authorised share capital 
2003 2002
Ordinary shares of 1 pence each £m £m
At 1 January 6.0 6.0
Increase in the year ––
At 31 December 6.0 6.0
Allotted, issued and fully paid
Number 2003
Ordinary shares of 1 pence each of Shares £m
At 1 January 321,110,607 3.2
Share options exercised 1,376,978 –
At 31 December 322,487,585 3.2
During the year 1,376,978 Ordinary shares with a nominal value of £13,770 were issued by the Company for a total cash
commitment of £305,571 pursuant to the exercise of share options granted as detailed in note 20.
20. Share options
The Future Network plc operates 10 share option schemes being:
• The Future Publishing Holdings Limited Unapproved Share Option Plan, (‘Future Publishing Holdings Plan’).
• The Future Network plc 1999 Stock Option Plan for Imagine Employees, (‘1999 US Plan’). 
• The Future Network plc 1999 International Share Option Scheme, (‘International Scheme’).
• The Future Network plc 1999 Senior Management Scheme, (‘Senior Scheme’).
• The Future Network plc 1999 Approved International Share Option Scheme (‘Approved Scheme’).
• The Future Network plc 2000 US Stock Option Plan (‘2000 US Plan’).
• The Future Network plc International Sharesave Scheme (‘International Sharesave Scheme’).
• Addendum to the Future Network plc International Sharesave Scheme (‘Addendum’).
• The Future Network plc UK Inland Revenue Approved Sharesave Plan 2000 (‘Sharesave Plan’).
• The Future Network plc Employee Benefit Trust.
As at 31 December 2003, options had been granted under all of the above schemes except for The Future Network plc
Employee Benefit Trust. 
The Future Publishing Holdings Plan
The Future Publishing Holdings Plan was provided to grant options to employees who were employed by Future Publishing
Holdings Limited and its subsidiaries. There are no performance criteria attached to options granted under this plan. Since
the Listing of the Company, no new options have been granted under this plan.
The 1999 US Plan
Under the Imagine Media, Inc. (now Future Network USA, Inc.) Acquisition Agreement in June 1999 stock option and stock
appreciation rights holders’ interests in Future Network USA, Inc. capital were converted into new options under a new stock
option plan (1999 US plan). All options and stock appreciation rights to purchase shares in the Common stock of Future
Network USA, Inc. were converted automatically (subject to certain conditions) into options to purchase Ordinary shares in
the Company, and the Company has assumed all obligations subject to the 1999 US Plan. Conversion was essentially on the
same terms and conditions as those prescribed under the original plans, including vesting criteria. There are no performance
criteria attached to options granted under this plan. Since the Listing of the Company, no new options have been granted
under this plan. All options outstanding under the 1999 US Plan will expire in June 2004. 
67 The Future Network plc Annual Report 2003 20. Share options continued
The International Scheme
The International Scheme is used for the grant of options to all employees, save for those persons entitled to participate in
the Senior Scheme. 
Options granted under this scheme up until 2 May 2001 vest in eight equal tranches, one tranche every six months following
publication of the annual and interim results of the Group, depending on the satisfaction of performance criteria that require
the normalised earnings per share of the Group to grow by at least 3% per annum above the increase in the Retail Prices
Index over the relevant period. For options granted in June 1999, the final vesting period was the six months to 30 June
2003. In this period the performance criteria were not met. Accordingly one-eighth of the options have lapsed unvested.
For all other option grants, for the six months ended 31 December 2003 the performance criteria have been met. On a
cumulative basis performance criteria have now also been met for the 6 months ended 30 June 2003.
Options granted in November 2001, April 2002, September 2002 and April 2003 under the International Scheme will all vest
three years after the date of grant, subject to satisfaction of performance criteria that require that the total shareholder
return of the Company, for the three year period following date of grant, must rank in the top quartile of UK companies whose
shares are listed in the Media and Entertainment sector of the London Share Service of the Financial Times newspaper. If the
Company ranks in the second quartile of this comparator group, then only one half of the options will vest; if the Company
ranks below the 50th percentile of this comparator group, then none of the options will vest.
The Senior Scheme
The Senior Scheme was used historically for the grant of options to the Board. Details of options outstanding under this
scheme and the performance criteria relating to these options are given in the Directors’ remuneration report. 
The Approved Scheme
The Approved Scheme is used for the grant of options to all UK employees up to a value of £30,000.
Options granted under this scheme up until 2 May 2001 vest in eight equal tranches, one tranche every six months following
publication of the annual and interim results of the Group, depending on the satisfaction of performance criteria that require
the normalised earnings per share of the Group to grow by at least 3% per annum above the increase in the Retail Prices
Index over the relevant period. For the six months ended 31 December 2003 the performance criteria have been met. On a
cumulative basis performance criteria have now also been met for the 6 months ended 30 June 2003.
Options granted in November 2001, September 2002 and April 2003 under the Approved Scheme will all vest three 
years after the date of grant, subject to satisfaction of performance criteria that require that the total shareholder return of the
Company, for the three year period following date of grant, must rank in the top quartile of UK companies whose shares are
listed in the Media and Entertainment sector of the London Share Service of the Financial Times newspaper. If the Company
ranks in the second quartile of this comparator group, then only one half of the options will vest; if the Company ranks below
the 50th percentile of this comparator group, then none of the options will vest.
The 2000 US Plan
The 2000 US Plan, which was adopted at the Company’ s first Annual General Meeting held on 21 June 2000, is used for the
grant of options to employees of the Company’ s US business.
Options granted under the 2000 US Plan up until 2 May 2001 typically vest as to 25% of the shares under option on the 
first anniversary of an employee joining (or, where options are granted under the US Plan to an existing employee, on the
anniversary of the grant of such options). The balance of 75% will vest in equal monthly tranches over the three year 
period commencing on the first vesting date. Whilst the Company had the right to impose performance conditions up 
until 19 November 2001, none was imposed as the Board’s view was that it was unusual for options granted by 
US competitors to their US employees to contain such criteria.
Options granted in November 2001 and April 2003 under the 2000 US Plan will all vest three years after the date of grant,
subject to satisfaction of performance criteria that require that the total shareholder return of the Company, for the three 
year period following date of grant, must rank in the top quartile of UK companies whose shares are listed in the Media and
Entertainment sector of the London Share Service of the Financial Times newspaper. If the Company ranks in the second
quartile of this comparator group, then only one half of the options will vest; if the Company ranks below the 50th percentile
of this comparator group, then none of the options will vest.
The Sharesave Plan, International Sharesave Scheme and the Addendum (the Sharesave Plans)
Under the Sharesave Plans the option entitlement granted to participating employees is linked to the monthly contributions
which such employees have agreed to pay into the Sharesave Plans (up to a maximum amount of £250 per month). The
options granted under the Sharesave Plans vest on the third anniversary of the grant of such options (or in the case of the
Addendum applicable in the US, due to legal constraints, two years after the date of grant of such options). Where legal 
and regulatory constraints permit, the Company uses its discretion to offer options granted under the Sharesave Plans at a
discount to the market price in force at the date of the invitation being made.
68 The Future Network plc Annual Report 2003
Notes to 
the financial
statements
continued 20. Share options continued
The Board exercised its discretion in September 2003 to issue invitations to participate in the Company’ s Sharesave 
Plans to eligible employees in the UK only. The option price represents a 20% discount to the market price at the time 
of the invitation.
The following options and conditional awards over Ordinary shares have been granted and are outstanding at 
31 December 2003:
Option Exercisable 
Number of shares Exercise not earlier 
Grant date under option price than
Future Publishing Holdings Plan
July 1998 283,032 £0.028 June 1999
April 1999 244,447 £0.216 June 1999
1999 US Plan 
June 1999 1,065,264 $0.309–$6.544 June 1999
June 1999 337,245 £0.01 June 1999
International Scheme (excluding US)
June 1999 427,744 £3.617 March 2000
April 2000 29,999 £6.846 – £7.647 March 2001
May 2001 18,200 £0.747 March 2002
November 2001 385,530 £0.470 Nov 2004
April 2002 300,000 £0.650 April 2005
September 2002 136,171 £0.470 Sept 2005
April 2003 2,633,337 £0.525 April 2006
International Scheme (US)
September 1999 2,899 $9.722 Sept 2000
October 1999 3,311 $10.990 Oct 2000
November 1999 641 $12.156 Nov 2000
December 1999 928 $12.932 Dec 2000
January 2000 1,529 $12.812 Jan 2001
Senior Scheme
November 2001 1,108,510 £0.470 Nov 2004
Approved Scheme
April 2000 27,478 £6.848 March 2001
May 2001 41,502 £0.747 March 2002
November 2001 2,321,460 £0.470 Nov 2004
September 2002 63,829 £0.470 Sept 2005
April 2003 906,663 £0.525 April 2006
2000 US Plan
July 2000 28,829 $11.202 July 2001
August 2000 906 $12.676 Aug 2001
September 2000 1,182 $10.149 Sept 2001
October 2000 2,808 $8.045 Oct 2001
November 2000 737 $6.101 Nov 2001
December 2000 2,660 $2.426 Dec 2001
April 2001 532 $1.201 April 2002
November 2001 770,000 £0.470 Nov 2004
April 2003 1,020,000 £0.525 April 2006
Sharesave Plan
October 2000 4,982 £5.390 Dec 2003
May 2001 427,737 £0.545 July 2004
December 2001 905,000 £0.380 Feb 2005
October 2002 295,974 £0.500 Dec 2006
October 2003 252,709 £0.530 Dec 2007
Total options outstanding at 31 December 2003 14,053,775
Of the 14,053,775 options (2002: 11,507,728) outstanding at 31 December 2003, 10,190,423 (2002: 6,037,572) are
subject to performance criteria. During the year 5,289,418 options were granted over shares, 1,376,978 options were
exercised and 1,366,393 options lapsed.
69 The Future Network plc Annual Report 2003 21. Share premium account
2003 2002 
Group and Company £m £m
At 1 January 169.6 169.6
Premium on shares issued during the year 0.3 –
Cancellation of share premium account (169.7) –
At 31 December 0.2 169.6
On 12 June 2003 the Company cancelled its share premium account as confirmed by an Order of the High Court of Justice,
Chancery Division. 
22. Profit and loss account
Group Company 
£m £m
At 1 January 2003 – deficit (191.6) (58.7)
Transfer on cancellation of share premium account 169.7 169.7
Profit for the financial year 2.7 2.4
Dividend proposed (4.0) (4.0)
Net exchange adjustments offset in reserves 0.8 –
Tax on exchange adjustments offset in reserves 0.1 –
At 31 December 2003 (22.3) 109.4
The Directors have taken advantage of the exemption available under section 230 of the Companies Act 1985 and have not
presented a profit and loss account for the Company alone.
23. Other reserves
GroupGroup Company
Merger Other Group Other 
reserve reserves Total reserves
£m £m £m £m
At 1 January 2003 109.0 21.8 130.8 21.8
At 31 December 2003 109.0 21.8 130.8 21.8
Notes to 
the financial
statements
continued
70 The Future Network plc Annual Report 2003 24. Acquisitions
The results for the year include the undernoted contribution from acquisitions:
Guitar Guitar Computec
HDP World One UK Other Total 
£m £m £m £m £m £m
Date acquired 28.04.03 10.09.03 31.10.03 21.11.03 – 2003
Turnover 5.4 1.9 0.2 0.3 – 7.8
Adjusted operating profit/(loss) 0.2 (0.1) – 0.1 – 0.2
Amortisation of intangible assets (1.6) (0.6) (0.1) (0.1) (0.2) (2.6)
Operating loss (1.4) (0.7) (0.1) – (0.2) (2.4)
The most recent pre-acquisition annual results of those acquisitions showed the undernoted estimated figures:
Guitar Guitar Computec
HDP World One UK Other Total
£m £m £m £m £m £m
Year ended 31.12.02 31.12.02 31.12.02 30.09.03 – 2003
Turnover 8.2 7.8 3.1 4.5 – 23.6
Operating profit/(loss) – 1.3 0.3 (1.4) – 0.2
The accounting policies applied by previous owners of the acquired businesses differed from those applied by the Group and
accordingly the pre-acquisition figures are not strictly comparable with those set out above for the year 2003. In addition,
foreign exchange adjustments limit the comparability of the two tables.
The total consideration for acquisitions during 2003 was as follows:
Guitar Guitar Computec
HDP World One UK Other Total
£m £m £m £m £m £m
Cash 3.5 10.0 1.5 3.2 0.2 18.4
Licensing obligation – – – 0.3 – 0.3
Associated costs 0.1 0.2 0.1 0.1 – 0.5
Total consideration 3.6 10.2 1.6 3.6 0.2 19.2
71 The Future Network plc Annual Report 2003 72 The Future Network plc Annual Report 2003
24. Acquisitions continued
i) Acquisition of Guitar World
On 10 September 2003 the Group’ s wholly owned US subsidiary Future Network USA, Inc. acquired certain assets and
liabilities relating to the magazine Guitar World and a number of related titles from Harris Publications Inc. for a cash
consideration of $16.25m. The consideration was funded by a combination of cash resources and bank debt. The purchase
is being accounted for as an acquisition.
The provisional fair values of the liabilities acquired are set out below:
Book and fair value
£m
Accruals and deferred income (subscription liabilities) (0.7)
Net liabilities acquired (0.7)
Goodwill 10.9
Consideration 10.2
Consideration satisfied by:
Cash 10.0
Associated costs 0.2
Total consideration 10.2
The liabilities shown above have been translated into Sterling at $1.584, being the exchange rate at the date of acquisition. 
Prior to the acquisition of these titles, they were owned by Harris Publications, Inc. In the year ended 31 December 2002
turnover for these titles was £7.8m and estimated trading profit attributable to these titles was £1.3m. This profit is
presented before corporate charges, interest and taxation and any financing items which were dealt with on a group basis 
by Harris Publications, Inc as a whole. As only certain assets and liabilities of the group were acquired, it is not practical 
to provide any details of post-tax profits or recognised gains or losses for the financial periods pre-acquisition. 
Since acquisition the Guitar World titles have been fully integrated into the Group’ s existing US subsidiary. As a result it is
impractical to isolate the cash flows of the Guitar World titles.
ii) Other acquisitions
During the year, the following business combinations, which were all accounted for as acquisitions, also occurred:
a) On 28 April 2003, the acquisition of 100% of the shares of Hachette Digital Presse SA from Hachette Filipacchi Presse SA
for a consideration of £3.5m.
b) On 4 September 2003 the acquisition of 100% of the shares of Rho Holdings Ltd for a consideration of £0.1m.
c) On 31 October 2003 the acquisition of the title Guitar One in the US and an associated subscription liability for a
consideration of £1.5m.
d) On 21 November 2003 the acquisition of 100% of the shares of Computec UK Ltd incorporating the titles PlayStation
World and Xbox World for a consideration of £3.2m.
e) In November 2003 the purchase in France of a subscription list and associated liability for a consideration of 
less than £0.1m.
f) In January 2003 the purchase in the UK of a trademark of a closed title for a consideration of £0.1m.
Notes to 
the financial
statements
continued 24. Acquisitions continued
The aggregate provisional fair values of the net assets acquired at the dates of these other acquisitions are shown below: 
Accounting 
policy 
Book value Revaluations alignment Other Fair value
Assets and liabilities acquired £m £m £m £m £m
Intangible fixed assets 0.6 – (0.6)
3
––
Tangible fixed assets 0.1 (0.1)
2
–– –
Stocks – – 0.1
4
– 0.1
Debtors 3.2 – – – 3.2
Cash at bank and in hand 0.5 – – – 0.5
Other creditors (5.0) – (0.2)
5
– (5.2)
Provisions for liabilities and charges – – – (0.5)
6
(0.5)
Net assets acquired (0.6) (0.1) (0.7) (0.5) (1.9)
Goodwill 10.9
Consideration 9.0
Consideration satisfied by:
Cash 8.4
Licensing obligation
1
0.3
Associated costs 0.3
Total consideration 9.0
Notes:
1 Licensing obligation – under the acquisition agreement of Computec UK, a subsidiary company of the Group will provide licensing and syndication
rights for a five-year period to Computec UK’ s former parent company, Computec AG. The value of this obligation has been fair valued with reference
to the Group’ s existing licensing contracts and discounted at a rate equivalent to the Group’ s cost of capital.
The fair value adjustments comprise:
2 The revaluation of fixed assets to reflect the market value of assets acquired at the date of acquisition.
3 The write off of the capitalised value of titles in line with the Group’ s accounting policies.
4 The revaluation of stock to take account of the capitalisation of direct cost salaries in work in progress in respect of magazine published after the
date of acquisition.
5 An amount of £0.2m to reflect liabilities incurred pre-acquisition in France in HDP but originally not recognised in the opening balance sheet.
6 A provision to reflect onerous employee contracts on the acquisition of HDP in France. Under French law certain classes 
of journalists have the right on the change of control of a company to demand favourable redundancy packages for an unlimited period after the
change of control. The provision reflects the potential cost of those eligible to claim redundancy and as at 31 December 2003, £0.4m of the
provision had been fully utilised. The remaining portion of the provision is expected to be fully utilised within 2004. 
73 The Future Network plc Annual Report 2003 25. Pensions 
The Group operates a defined contribution scheme for employees resident in the United Kingdom.
In the US the Group operates a Section 401(K) profit sharing defined contribution plan in respect of pensions, which covers
substantially all Future Network USA employees. The Section 401(K) plan allows employees to invest in eight funds run 
by T . Rowe Price, but the employees, not the employer, have complete control over what they invest in, although they have no
control over the stocks owned by the funds. 
During the year £0.7m (2002 : £0.6m) of contributions were made by the Group to these plans.
26. Commitments and contingent liabilities
a) Operating lease commitments
At 31 December 2003 the Group had annual commitments under non-cancellable operating leases as set out below:
Land and 2003 Land and 2002
Buildings Other Total Buildings Other Total
£m £m £m £m £m £m
Annual commitments under 
non-cancellable operating 
leases expiring:
Within one year 0.2 0.1 0.3 0.1 0.2 0.3
Within two to five years 2.2 0.2 2.4 2.6 0.3 2.9
After five years 1.8 – 1.8 1.6 – 1.6
Total 4.2 0.3 4.5 4.3 0.5 4.8
b) Contingent liabilities
At 31 December 2003, the Company had contingent liabilities outstanding in respect of counter-indemnities of £0.7m 
(2002: £1.3m) and guarantees given by it to the Group’ s bankers in respect of amounts outstanding from its subsidiaries
under the Group bank facility arrangements.
A number of trading subsidiaries are defendants in various legal actions. In the opinion of the Directors, after taking
appropriate legal advice, the outcome that such actions would give rise to a significant loss is considered remote. 
c) Capital commitments
There were no material capital commitments as at 31 December 2003.
27. Related party transactions
Transactions with those subsidiary undertakings where 90% or more of their voting rights are controlled within the Group,
and transactions that are eliminated on consolidation, are not disclosed as provided for in FRS8: Related Party Disclosures.
28. Principal subsidiary undertakings 
The principal subsidiary undertakings are shown below. A full list of subsidiaries is available at the Company’ s registered
office. All subsidiaries are included in the consolidation. Those companies marked with an * are indirectly owned by The
Future Network plc through an intermediate holding company.
Subsidiaries Country of Incorporation Nature of business Holding % Class of shares
Future Publishing Limited* England and Wales Magazine publishing 100 £1 Ordinary shares
FXM International Limited England and Wales Magazine publishing 100 £1 Ordinary shares
Future Network USA, Inc* USA (State of California) Magazine publishing 100 Not applicable
Future France SA* France Magazine publishing 100 €15.25 Ordinary shares
Future Media Italy SpA* Italy Magazine publishing 100 €0.51 Ordinary shares
Notes to 
the financial
statements
continued
74 The Future Network plc Annual Report 2003 75 The Future Network plc Annual Report 2003
FTSE Media and
Entertainment
Sector Index 
(UK companies)
Aegis Group
Bloomsbury Publishing
British Sky Broadcasting
Capital Radio
Chrysalis Group
Daily Mail ‘A’
Datamonitor
Emap
EMI Group
Euromoney Institutional Investor
The Future Network
GWR Group
Highbury House Communications
Hit Entertainment
Incepta
Incisive Media
Informa Group
ITE Group
itouch
ITV
Johnston Press
Maiden
Metal Bulletin
Pearson
Photo-Me International
Reed Elsevier
Reuters Group
Sanctuary Group
Scottish Radio Holdings
SMG
St. Ives
Taylor and Francis
Taylor Nelson Sofres
Trinity Mirror
Ulster T V
United Business Media
Wilmington
WPP Group
Yell Group
The following is a list of companies currently included in the Media 
and Entertainment Sector Index (UK companies). Reference is made to this 
list in the Directors’ remuneration report on pages 34 and 35. Notice is hereby given that the fifth Annual General Meeting of The Future Network plc will be held on Thursday, 13 May 2004
at the Wessex Suite, Francis Hotel, Queen Square, Bath BA1 2HH at 11a.m. at which the following resolutions numbered one
to nine below will be proposed as ordinary resolutions of the Company and the resolutions numbered 10 and 11 will be
proposed as special resolutions of the Company.
Ordinary business
Ordinary resolutions
1. To receive and adopt the audited financial statements of the Company for the year ended 31 December 2003 and 
the reports of the Directors and the Auditors on those statements.
2. To approve the Directors’ remuneration report as set out in the Annual Report of the Company for the year ended 
31 December 2003.
3. To declare a final dividend of 1.25 pence per ordinary share, payable on 24 May 2004 to all Ordinary shareholders 
on the register at the close of business on 23 April 2004.
4. To re-elect as a Director John Bowman who retires by rotation under the provisions of the Articles of Association.
5. To re-elect as a Director Roger Parry who retires by rotation under the provisions of the Articles of Association.
6. To re-appoint PricewaterhouseCoopers LLP, Chartered Accountants and Registered Auditors, as auditors of the Company
to hold office until the conclusion of the next General Meeting at which accounts are laid before the Company.
7. To authorise the Directors to determine the remuneration of the auditors of the Company.
Special business
Ordinary resolution
8. To change the financial year end of the Company from 31 December to 30 September in each year, such change to be
effected by shortening the 2004 financial reporting period to nine months ended 30 September 2004.
9. That, in substitution for any existing authority, the Directors be and are hereby generally and unconditionally authorised
for the purposes of Section 80 of the Companies Act 1985 (‘the Act’) to exercise all the powers of the Company to allot
relevant securities (within the meaning of that Section) up to the nominal amount of £1,066,000 at any time or times
during the period beginning on the date of the passing of this Resolution and ending on 12 May 2009 (unless previously
revoked or varied by the Company in General Meeting) save that, pursuant to Section 80(7) of the Act, the Company may
before expiry of this authority make an offer or agreement which would or might require relevant securities to be allotted
after its expiry and the Directors may allot relevant securities pursuant to such an offer or agreement as if the authority
hereby conferred had not expired.
Special resolutions
10. That, in substitution for any existing authority and subject to the passing of Resolution 9, the Directors be and are hereby
empowered pursuant to Section 95 of the Act to allot equity securities (within the meaning of Section 94(2) of the Act) 
for cash pursuant to the authority conferred upon it for the purposes of Section 80 of the Act by Resolution 9 and to allot
equity securities (within the meaning of Section 94(3A) of the Act) as if Section 89(1) of the Act did not apply to any such
allotment at any time or times during the period beginning on the date of the passing of this Resolution and ending on 
12 May 2009 (save that, pursuant to Section 80(7) of the Act, the Company may before the expiry of the power hereby
conferred make an offer or agreement which would or might require equity securities to be allotted after its expiry and 
the Directors may allot equity securities pursuant to such an offer or agreement as if the power hereby conferred had not
expired), such power being limited to:
a) The allotment of equity securities in connection with any rights issue in favour of the holders of relevant Ordinary shares
and relevant employee Ordinary shares, or in connection with any other form of issue of such securities in which such
holders are offered the right to participate, in proportion (as nearly as may be) to their respective holdings and, if the
rights attaching to any other equity securities so provide, in favour of the holders of those equity securities in accordance
with such rights, but subject to such exclusions or other arrangements as the Directors consider necessary or expedient
in connection with Ordinary shares representing fractional entitlements or on account of either legal or practical
problems arising in connection with the laws of any territory, or of the requirements of any generally recognised regulatory
body or stock exchange in any territory; and
b) The allotment (otherwise than pursuant to sub-paragraph (a) above) of equity securities up to an aggregate nominal
amount of £161,500 (representing just under 5% of the issued share capital of the Company as at 10 March 2004).
76 The Future Network plc Annual Report 2003
Notice of Annual
General Meeting 11. That, in substitution for any existing authority, the Company be generally and unconditionally permitted to make market
purchases (within the meaning of Section 163(3) of the Act) of Ordinary shares of 1 pence each in the capital of the
Company provided that:
a) The maximum aggregate number of Ordinary shares which may be purchased be limited to 32,000,000 shares
b) The minimum price payable per Ordinary Share be 1 pence
c) The maximum price which may be paid for such Ordinary shares shall not be more than 5% above the average of the
market values for an Ordinary Share as derived from the London Stock Exchange’ s Daily Official List for the five 
business days immediately preceding the date on which the Ordinary shares are purchased
d) Unless previously renewed, varied or revoked, this authority shall expire at the conclusion of the next Annual General
Meeting following the date of this resolution
e) The Company may make a contract to purchase shares under the authority conferred by this resolution prior to expiry 
of such authority, which may be executed wholly or partly after expiry of this authority.
On behalf of the Board
Mark Millar
Company Secretary
The Future Network plc
Beauford Court
30 Monmouth Street
Bath BA1 2BW
10 March 2004
Notes:
1 Any member entitled to attend and vote at the meeting may appoint one or more proxies to attend and, on a poll, vote instead of him. A proxy need
not be a member of the Company. A proxy card is enclosed. To be effective, it should be completed, signed and returned so as to be received by the
Company’ s Registrars, Lloyds TSB Registrars plc, The Causeway, Worthing, West Sussex BN99 6ZL, not less than 48 hours before the time appointed
for the holding of the meeting.
2 The Company, pursuant to Regulation 41 of The Uncertified Securities Regulations 2001, specifies that only those members on the register of 
the Company as at 6p.m. on Tuesday, 11 May 2004 shall be entitled to vote at the meeting in respect of the number of shares registered in their name
at that time. Changes to entries on the Register after 6p.m. on Tuesday, 11 May 2004 shall be disregarded in determining the rights of any person 
to attend or vote at the meeting.
3 Copies of the following documents will be available for inspection at the registered office of the Company and at the offices of SJ Berwin,
222 Gray’ s Inn Road, London WC1X 8HB during usual business hours on any weekday (Saturdays and Bank Holidays excepted) until Wednesday,
12 May 2004, and at the place of the meeting from 10.45a.m. until its completion.
a) The service contracts of the Company’ s executive Directors and terms of appointment of the Company’ s non-executive Directors.
b) The Company’ s Memorandum and Articles of Association.
c) The Register of Directors’ interests kept by the Company under Section 325 of the Companies Act 1985.
d) Copy of the Terms of Reference of the Remuneration Committee.
e) Copy of the Terms of Reference of the Audit Committee.
f) Copy of the Terms of Reference of the Nomination Committee.
77 The Future Network plc Annual Report 2003 Registered office and Group headquarters
The Future Network plc
Beauford Court
30 Monmouth Street
Bath BA1 2BW
www.thefuturenetwork.plc.uk
Company registration number 3757874
Auditors
PricewaterhouseCoopers LLP
31 Great George Street
Bristol BS1 5QD
Brokers
UBS 
1 Finsbury Avenue
London EC2M 2PP 
Investment bankers
Morgan Stanley 
25 Cabot Square
Canary Wharf
London E14 4QA
Principal bankers
BNP Paribas
10 Harewood Avenue
London NW1 6AA
Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
Solicitors
SJ Berwin 
222 Grays Inn Road
London WC1X 8XF
Registered office
and advisers
78 The Future Network plc Annual Report 2003 79 The Future Network plc Annual Report 2003
Analysis of Ordinary shareholders as at 31 December 2003:
Percentage Number of Percentage
Number of of total shares of issued 
Range of holdings shareholders shareholders ‘000 share capital
1–500 632 26% 157,068 –
501–1,000 389 16% 297,241 –
1,001–10,000 1,043 43% 3,239,933 1%
10,001–100,000 186 8% 6,485,959 2%
100,001 and over 183 7% 312,307,384 97%
Total 2,433 100% 322,487,585 100%
Shareholders should contact the Registrars, Lloyds Registrars plc, in connection with changes of address, lost share
certificates, transfer of shares and dividend mandate forms. The share register is by law a public document. To limit the
receipt of mail from other organisations, please write to Mailing Preference Services, Freepost 22, London W1E 7EZ.
For enquiries of a general nature regarding the Company and for Investor Relations enquiries please contact Terri Davey at
the Company’ s registered office.
Shareholder
information Financial year end 31 December 2003
Announcement of full year results 10 March 2004
Annual Report mailed to shareholders 13 April 2004
Annual General Meeting 13 May 2004
First dividend
Ex-dividend date 21 April 2004
Record date 23 April 2004
Annual General Meeting vote on dividend 13 May 2004
Payment date 24 May 2004
Half-year end 30 June 2004 
Half-year results announced September 2004
Half-year results mailed to shareholders September 2004
2004 timetable
80 The Future Network plc Annual Report 2003 The white paper used in this report
has been manufactured using totally
chlorine free pulp. The blue paper is 
an Elemental Chlorine Free (ECF) 
grade. Both papers have been 
sourced from sustainable forest 
reserves.
Designed and produced by
williams and phoa, printed in the UK.  The Future Network plc
Beauford Court
30 Monmouth Street
Bath BA1 2BW
United Kingdom
T el: +44 (0)1225 442244
www.thefuturenetwork.plc.uk