Future: Investment plan looks set to pay off at publisher
Publishing firm Future said its investment strategy had put it in a strong position for the future despite profit falling in the 2024 financial year.
Adjusted profit in the year-to-September was down 13 per cent to £222.2m, reflecting increased investment on the back of its Growth Acceleration Strategy.
The Growth Acceleration Strategy is a two-year investment programme worth £25m to 30m, launched in December 2023.
The publisher, which owns titles including Country Life, Marie Claire and T3, noted that over 100 new staff members had been added under the plan.
The new staff members will help drive editorial content output and US sales capabilities. The firm has also awarded staff an average five-percent pay rise starting in January.
“We launched our Growth Acceleration Strategy one year ago and have made good strategic progress,” Jon Steinberg, Future’s chief executive, said.
“We have invested in sales and editorial roles, successfully diversified and grown revenue per user, and we have further optimised our portfolio. Importantly, the Group has returned to organic revenue growth during the year, underpinned by a strong H2 performance,” he added.
In the second half of the year, organic revenue growth hit five per cent, largely on the back of strength in the UK market.
Future said the return to revenue growth put it in a good position to achieve market expectations next year. It expects to operate at an adjusted profit margin of 28 per cent.
“Beyond FY 2025, we now expect to deliver accelerating organic revenue growth, in line with current market expectations,” the firm said.
Future announced a new share buyback programme of £55m starting in January on the back of its results. Shares in the company rose over ten per cent in early trade.
Analysts at Peel Hunt said Future had seen a “welcome” improvement in trading, but warned that investors might be put off until there was more certainty about the company’s leadership.
Steinberg announced in October that he would step down, having only joined the company in April 2023. “Until a new CEO is appointed, the uncertainty in leadership will continue to cast a shadow over the business,” the analysts wrote.