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Shares in Future PLC soared on Thursday after it launched a new share buyback and said it returned to revenue growth in the second quarter. Shares in the Bath, England-based online magazine publisher and owner of price comparison website Go Compare, leapt 17% to 1,016.40 pence in London on Thursday. They earlier traded as high as 1,091.00p. In the half-year to March, Future said pretax profit fell 30% to £46.6 million from £66.4 million a year prior. Profitability was mainly impacted by an adverse revenue mix and investment from the previously announced Growth Acceleration Strategy, Future said. The GAS strategy, announced in December, is a two-year investment programme of £25 million to £30 million aimed at accelerating growth. Revenue fell 3.3% to £391.5 million from £404.7 million. Future said it returned to year-on-year revenue growth in the second quarter with organic revenue growth of 3%. UK revenue grew by 3% on an organic basis with very strong growth in price comparison service Go.Compare, up 30%, and good growth in business to business. US revenue declined by 11% on an organic basis, with an improving trend through the second quarter. Future said it expects to deliver revenue growth in the second half with an adjusted operating margin of 28%. In the first half of the financial year, the adjusted operating margin was 27%. ‘The stabilisation of trends and return to group organic revenue growth in [the second quarter] give us confidence in delivering full year performance in line with expectations,’ the company said. Longer-term, Future is confident that the execution of the GAS investment programme will drive accelerating organic revenue growth of mid-single digit compound annual growth over the next three years with an adjusted margin of 28% to 30%. No dividend was declared, unchanged from a year ago. But Future plans a further return of up to £45 million via a share buyback programme which will start shortly. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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