- Return to organic growth
- Highly cash generative
- New £55 million buyback
Shares in Future (FUTR) soared 13% to £11.10 in morning trading despite the publishing firm reporting flat full year revenue for the year ending 30 September.
On the positive side, the media group returned to year-on-year organic revenue growth of 1%, with a strong second half performance up 5%.
In relation to its Growth Acceleration Strategy Future said it was making ‘good progress’ by adding 100 new team members across sales, editorial and back-office.
For the full year 2025 the company hopes to improve monetisation, diversify Go Compare revenue and review its portfolio.
NEW SHARE BUYBACK
Future insisted it remains highly cash generative with adjusted free cash flow of £222.3 million, representing 100% of adjusted operating profit.
For shareholders it was good news as the company said £68.6 million was returned to shareholders during the year comprising £64.7 million through share buybacks and dividends of £3.9 million.
The company also announced a new share buyback programme for up to £55m starting in January 2025.
EXPERT VIEW
Dan Coatsworth, investment analyst at AJ Bell said: ‘Future’s full-year results don’t exactly paint a picture of a business in rude health. Profits are down by a quarter, the chief executive is leaving, and there is no growth in the dividend. One could argue the first two factors are old news and the dividend is irrelevant given Future has never been an income stock.
‘What really matters is the direction of travel strategically and two announcements which have acted like fairy dust for the share price – partnering with ChatGPT owner Open AI and launching a new share buyback programme.
‘Future’s business model is based upon creating engaging content that leads to the reader making a purchase, with the media group taking a commission on any transactions that have originated from clicking links in its articles. Given the fragile backdrop for consumer spending, Future needs to work hard on new initiatives to keep driving clicks.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Martin Gamble) own shares in AJ Bell.
