The chief executive of Future, the fast-growing Bath specialist media group, has praised the agility of its staff after it defied the publishing sector’s gloom to post an 110% increase in half-year pre-tax profits.
The highly diversified and acquisitive group, whose titles span TechRadar, PC Gamer and Country Life, achieved the £56.9m profits on sales up 89% at £272.6m in the period to March 31.
The performance was in marked contrast with much of the sector, which has struggled with poor sales and lower advertising revenue during the pandemic. One city analyst described the results as “stonking” and said the group appeared futureproof at present.
Future, which last week acquired the US version of fashion and beauty publication Marie Claire just over a year after it snapped up the UK title, has grown exponentially over recent years, largely driven by a string of judicious acquisitions in the UK, US and Australia.
As a result it has transformed itself from a magazine and web publisher to a broader group based on its strategy of becoming what it calls “a global platform for intent-led specialist media underpinned by technology, and enabled by data; with material, scalable, diversified brands”.
During the half-year Future’s Media division achieved organic growth of 30%, with a one-off revenue benefit for its eCommerce business from Covid-19 estimated by managers to be the region of £5m.
Future’s brands reached 419m people a month, including via their social platforms and events, it said, while online users rose by 31% year-on-year to 311m.
Last winter Future gave its staff £1,000 each to work from home and also took on another 150 staff – going against industry trends. While Covid-related restrictions are now being lifted, staff can still work from home two days a week.
Future chief executive Zillah Byng-Thorne, pictured, who ushered in the period of breakneck change at the group following her appointment seven years ago, said the latest results reflected the ongoing successful execution of its strategy with record revenue and profit materially ahead of market expectations.
“Following an exceptional eCommerce and digital advertising performance during Black Friday and Christmas in Q1, we have carried this strong trading momentum through to the end of the first half.
“The progress we continue to make is testament to the diversity of our revenue streams, the agility of our people, and the scalable operating model we have built over time, which generates long-term sustainable growth.”
During the half-year Future acquired GoCo, the firm behind Co Compare insurance, for £594m and fast-growing Australian price comparison website Mozo for A$30m (£16.8m).
Miss Byng-Thorne added: “Content and data sit at the heart of our business; the depth of our market-leading, specialist brands means that today we reach one in three people online in the US and UK.
“Thanks to our expert content, combined with our scalable proprietary technology, we continue to increase our reach; the recent acquisition of Marie Claire US is another enabler of our ongoing focus on vertical leadership.
“We know our audiences increasingly seek intent-driven content and authoritative advice to inform their purchasing decisions. We were therefore delighted to acquire GoCo Group and Mozo during the period, accelerating our strategy by extending our eCommerce proposition beyond products into services, further diversifying our revenue streams.
“Looking ahead, we are well positioned to sustain the growth momentum we have built over recent years. Whilst we remain cautious about the wider macroeconomic uncertainties associated with Covid-19, we are confident in the outlook for the Group and expect the full year to be materially ahead of market expectations, underpinned by an exceptional H1 performance.”
Future’s performance was praised by Hargreaves Lansdown equity analyst Sophie Lund-Yates, who said: “There’s no getting away from the fact these are a stonking set of results and suggest at least for now, the business is futureproof.
“The meteoric rise in revenues has been boosted by acquisitions, but crucially organic growth showed up in a big way too. The group’s being boosted by increased online shopping trends, with the pandemic adding an estimated £5m to eCommerce sales in the first half of the year. Future’s tech platform means the business is enjoying the benefits of scale too, with margins improving.”
