Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineFuture shows resilience to coronavirus crisis
Not too many businesses are currently guiding for their results to come in at the top end of expectations, indeed many are not providing any guidance at all, but media stock Future (FUTR) has bucked the trend.
A strong showing for its digital business through lockdown, progress on the integration of the recently acquired TI Media business, which brought in a number of publications including Marie Claire UK, and tight cost control helped contribute to the winning performance.
Having recovered most of the ground it lost in the initial coronavirus correction, the shares now trade on a price-to-earnings ratio of 17.6.
In theory the bleak outlook for much of the publishing sector should fit neatly with Future’s strategy of acquiring specialist titles cheaply and then monetising the content through an e-commerce and digital advertising platform.
The opportunities will have to be balanced against the need to preserve balance sheet strength as it continues to face into an uncertain backdrop. Berenberg forecasts the company to end the September 2020 financial year with net debt of £80 million.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
