Future trading at top end of forecasts, will repay furlough funds
Specialist publisher Future said on Monday that, with around two months of the current financial year remaining, its trading was expected to be towards the top end of market expectations.
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The FTSE 250 company put that down the combined effect of strong digital audience numbers, helped by an increased consumer shift to digital media during the Covid-19 lockdown, as well as strong cost control, and the acceleration of synergies following the acquisition of TI Media.
It added that, as a result of its continued strong performance, it was repaying the support it received from the UK government’s furlough scheme.
Future also said that the integration of TI Media was progressing in line with expectations, with the new web property Gardeningetc launched in June, and Whattowatch and Fitandwell launched in July, all using the editorial expertise of TI Media, and its content archive.
The existing TI Media properties, Home&Gardens and Woman&Home, were both on track for migration onto Future’s ‘Vanilla’ website platform by the end of October.
At the initial announcement of the TI Media acquisition on 30 October, Future said expected cost synergies of £15m per annum would be achieved within 24 months.
It outlined that total restructuring costs of £9m across both back-office and front-office functions and other overhead costs would be incurred by the end of FY21 to deliver those cost savings.
On Monday, it said progress on those savings was “well underway”, with the original synergies being validated, and annual cost synergies of more than £9m already secured, of which around £3m would benefit the 2020 financial year.
As part of the next phase in the delivery of those synergies, Future said it was starting a consultation process with employee representatives over a proposed reduction in the workforce.
The board said synergies would be delivered in line with the original cost-to-achieve ratio.
Future said it hired new sales and marketing resources in the United States to help drive the launch of those brands, in line with its strategy to expand its reach in the US.
The company’s price comparison technology Hawk, meanwhile, has been successfully deployed onto Cyclingweekly and Woman&Home, with the majority of the rest of the portfolio planned to be moved onto Hawk over the summer.
Hybrid - its advertising technology - was expected to be rolled out across the TI Media estate in August.
The board noted the appointment of Rachel Addison as chief financial officer, effective 1 June, while Andrea Davies, Angie O'Farrell and Adrian Hughes - also from TI Media - had all joined Future’s leadership team.
“Building on our strong track record of successfully integrating acquisitions, we are pleased that the integration of TI Media is progressing in line with our expectations,” said chief executive officer Zillah Byng-Thorne.
“We remain confident in the long-term opportunity to create value through integrating TI Media's brands into our unique portfolio and optimising their performance by leveraging our technology platform to build digital presence, introduce new revenue models and capitalise on the opportunity to expand our reach beyond the UK, particularly in the US.
“Furthermore, the strong group performance we reported at our half-year results has continued and we remain confident of delivering another year of growth within our portfolio and further strategic progress.”
At 0823 BST, shares in Future were up 5.45% at 1,276p.