The Small Company Sharewatch

Issue

November 2023

Primary Recommendations

Future - Stage set for good Q4 against soft comps - on a PE of 5.6 one that could double

Signs are mounting that a long, dull period is over for former glamour stock Future. Between 2017-2021, Future caught the imagination spectacularly. The price went from 352p when I first wrote on them in December ‘17 to a post TMT bubble high of £39 by August 21, a gain of over 1000%, raising the price-earnings ratio to more than 50 as investors... ...

The Small Company Sharewatch

Issue

June 2022

Primary Recommendations

Reach - Deep Value in a FIFA World Cup year

The slow steady decline in newspaper and newsstand magazine sales has persuaded many investors that this is a sector to be avoided. But some “dead tree” publishers, often with the help of fresh management, are coping well with the structural decline in print and creating strong platforms for future growth. You only need to look at the transforma... ...

The Small Company Sharewatch

Issue

June 2022

Updates

Future

Future is another advertising share that has been buffeted having fallen 50% in the year to date despite not putting a foot wrong. This month it acquired WhoWhatWear, a digital-only women’s lifestyle publisher based in the US. It has 12m online users and also a strong social media presence, with 10m social followers and makes Future the sixth-la... ...

The Small Company Sharewatch

Issue

November 2021

Updates

Future

Another SCSW share to squeeze out yet another upgrade is Future with operating profit to be at the top end of market expectations (which had been in a range of £183.5m to £193.6m). The company is pointing to “continued momentum in digital advertising with sustained yield growth more than offsetting the impact of strong comparat... ...

The Small Company Sharewatch

Issue

September 2021

Updates

Future - Buys Dennis for £300m

Future has acquired Dennis from Exponent Private Equity for £300m. Dennis is a consumer subscription business, which strengthenes its presence in Wealth in particular and also enhances Future’s US presence, given 56% of the revenues being acquired are in the US.In 2020, Dennis had sales of £104.8m (12% growth year-on-year) and EBITDA of £20m, ma... ...

The Small Company Sharewatch

Issue

June 2021

Updates

Future - Exceptional H1 with forecasts climbing 25%

The shares soared after Future’s blow out H1, which said Q3 has started ahead of management expectations. Full year results are now expected to be “materially ahead of market expectations.” Both big acquisitions, TI Media and GoCo, executed well. TI Media is ahead of target while GoCo, which was in for six weeks, is now expecte... ...

The Small Company Sharewatch

Issue

January 2021

Updates

Future

Following Future’s FY20 prelims, which exceeded market expectations, it has made a surprise recommended offer for GoCo (GOCO; 129p). The offer is composed of 33p cash and 0.05 new Future shares per GoCo share. GoCo is a leading player in the price comparison and consumer saving space through its GoCompare, WeFlip and MyVoucherCodes brands.... ...

The Small Company Sharewatch

Issue

November 2020

Updates

Future - Goes over £20 - gain 512%

Following last month’s strong trading update, Numis has increased its estimates in both FY20 and FY21 with adjusted eps increased to 66.6p/81.1p from 62.5p/76p.   Separately, Future also announced the acquisition of CinemaBlend for an undisclosed amount. Its website, Cinemablend.com, provides a platform for enthusiasts and casual fans to discove... ...

The Small Company Sharewatch

Issue

October 2020

Updates

Future - Hits ball out of the park once again

The shares went up £2 to £16, a new high, after Future’s pre-close update said it expects results for the year to end September to be “materially ahead.” It continues to benefit from the trend in a shift to digital media. In August, organic unique visitors in the UK and US were up 25% and 40%, respectively, over the... ...

The Small Company Sharewatch

Issue

July 2020

Updates

Future

COVID-19 has accelerated the longstanding structural trends in both Media and Magazine segments. With Magazine sales down as large newsagents like WH Smiths went into lockdown, more people sought information online, causing Future's Media side to see sharp audience growth. Overall, sales grew 33% to £144.3m (+11% organic) and adjusted... ...