Emap, which owns magazines such as Heat and Grazia and radio stations Magic and Kiss, predicted that 2007-08 financial year would remain tough on the consumer media markets, but that the business-to-business group would remain strong.

In order to turn the business around Emap appointed consultants McKinsey to carry out a strategic review in November 2006 that will see cost cuttings of more than £20m a year. The full benefits of these savings are not likely to come to fruition until the 2008-09.

However, Emap will still incur expenses of around £30 million, along with a capital investment of £10m for new systems and buildings.

Emap chief executive Tom Moloney (pictured), who is leading the group through these tough times, said: "The management actions we are taking are a positive response to prevailing market conditions.

"The fact we have identified substantial savings, given that we already operate on industry leading margins, signifies the progressive approach we are taking to operational efficiency."

Emap last week acquired YoSpace, a firm specialising in user-generated content, for £8.7m in a move to push its digital offerings.

In December last year Emap offloaded teen magazine Bliss to children’s card collector group Panini, and a further spring clean is expected this year.