Emap, whose top magazine sellers include Grazia, Closer, FHM and Heat, today promised a sale of its profits-dragging French magazines business by September, but declined to name a price or potential buyers.

The group said it intends to return surplus funds to shareholders once the deal is complete.

Industry sources say there are five potential buyers left in the race: Italian publishers RCS Mediagroup and Mondadori ; from Germany, Bertelsmann's Gruner + Jahr; and private equity firms The Carlyle Group of the United States and Britain's Apax, whose media partners include former Daily Telegraph managing director Stephen Grabiner.

Analysts value the business at around £440 million. Profits dropped 25 per cent last year to £38 million on flat salesof £300 million.

Including the French business, pre-tax profits at Britain's largest magazine group rose 9 per cent to £223 million for the year to the end of last March on revenues up 8 per cent to £1.1 billion. Both were boosted by last year's acquisition of Scottish Radio Holdings.

Tom Moloney, Emap's chief executive, said the Scottish radio acquisition was already enhancing earnings and on track to deliver £5 million of annual cost savings.

Together with its London stations, Magic and Kiss, and Kerrang! in Birmingham, operating profit from radio jumped 50 per cent to £33 million. Once the French operations are sold, the radio business will be the third-largest contributor to Emap's profits after its business-to-business operations, which include conferences and events, and the stable of UK consumer titles.

Mr Moloney said: "During the year we have invested £480 million on acquisitions, which are performing ahead of our expectations, and a record £25 million on launches." Its new women's weekly First is set to go on sale this week.

The dividend is lifted 20 per cent to 30p a share.

Mr Moloney added: "Our plan is to build a brand-led multi-platform media group...and our strategic priorities remain targeted investment in core brands to accelerate growth."

Emap shares rose 1.34 per cent to 829p. To track the shares click here

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