- Shares fall 15% to 835p
- CEO Jon Steinberg to relocate to the US
- Search for successor launched
Shares in Future (FUTR) fell over 15% to 835p in morning trading as CEO Jon Steinberg said he was leaving the publishing firm later next year to relocate back to the US with his family.
‘Jon's notice period is twelve months, and the board will now launch a search for his successor,’ the company said.
Future has 300 titles including Ideal Home, games radar, womens' title Marie Claire, TechRadar, and the price comparison site Go.Compare
Steinberg joined Future in April 2023 and had made progress with the company’s growth acceleration strategy according to the FTSE 250 company.
In a trading update on 26 September the media group said its full year 2024 is expected to be in line with market expectations.
However, Steinberg’s early exit has spooked investors despite the company making steps in the right direction so far this year optimising its portfolio, investing in technology, and growing its international reach.
Future will release its full-year results on 5 December.
BAD SIGN
Russ Mould, investment director at AJ Bell said: ‘Investors have taken this to be a bad sign, dragging the shares down more than 10%. Future used to be a highly acquisitive business, snapping up titles to expand its empire of media assets which were then used as a platform to earn commission on product or service sales.
‘The cost-of-living crisis and high interest rate environment knocked the company off track, and it has been trying to regain momentum ever since. More recently, it has been shutting down the weaker parts of its business to save money and improve group margins, while at the same time trying to revive growth.
‘Investors will be asking why Steinberg isn’t sticking around to see through this strategy – has he spotted problems down the line, or has he simply been offered a better opportunity elsewhere?’
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.
