Future PLC is a publishing company founded in 1985, which is based in Bath.

It publishes content in areas such as tech, games, entertainment, women's lifestyle, real life, music, creative and photography, sports, home interest, and B2B sectors in the United States and the United Kingdom. 

Predicting the future of FUTURE PLC

A 4% year-on-year revenue decline for our December 2022 pick has caused a 50% fall in their share price. We believe this is an over reaction, especially for a company that has spent the last 5 years increasing it's revenue by around 8% per year. It is now valued at around the same amount as 4 years ago, in which time it has made several major acquisitions: 
  • US publisher Purch in September 2018
  • Mobiles Nations in February 2019
  • Barcroft Studios in November 2019
  • TI Media in April 2020
  • A £594m takeover of price comparison website owner GoCo.
  • Another 12 titles as part of a £300m Dennis Publishing buyout in August 2021 
Despite facing challenges, the company, led by CEO Jon Steinberg, is implementing a robust Growth Acceleration Strategy (GAS) and making bold investments to position itself for long-term success.

What did the latest annual report say?
The financial results for FY 2023 indicate a 4% decline in revenue to £788.9 million, impacted by a 10% organic decline, partially offset by favorable foreign exchange and acquisitions. Despite the challenges, Future remains highly cash generative, with adjusted free cash flow of £253.2 million, representing 99% of adjusted operating profit.

What measures are being put in place to turn the tide?

Growth Acceleration Strategy (GAS)
Future's response to market challenges involves the launch of the Growth Acceleration Strategy (GAS), a two-year investment program of £25 million to £30 million. This initiative focuses on key pillars:

Audience Engagement
Future aims to maintain or improve leadership positions in strategic verticals, enhancing revenue per user and resilience.

Revenue Diversification
With a focus on monetization, the company is driving digital revenue per online user, showing a promising +22% year-on-year growth in Savings and Fashion & Beauty.

Portfolio Optimisation: Future is actively reviewing and segmenting its brands, ensuring effective capital allocation for sustained growth.

Strategic Investments and Hiring Initiative
In response to a 20% drop in share prices post-2023 results, Future is pledging a £25 million to £30 million investment program, including the hiring of 150 new editorial staff. CEO Jon Steinberg, known for his successful ventures in "new media," is leveraging his experience to lead Future's strategic initiatives.

Digital Transformation and Monetisation Strategies
Steinberg's vision includes monetizing Future's substantial social media following of 180 million. Plans involve branded content on social platforms, short-form videos, and innovative packages, aligning with the success of WhoWhatWear.

Additionally, Future is eyeing the digital subscription market, recognizing it as a significant opportunity for growth. Steinberg intends to replicate the success seen in print subscriptions, targeting brands with substantial print subscribers to kickstart a digital subscription business.

Mergers and Acquisitions Strategy
Future remains open to strategic acquisitions, focusing on creative and financially sensible opportunities. The current share price limitations have prompted a shift towards smaller, bolt-on acquisitions, with an active pipeline under consideration.

The New CEO himself
As the CEO of Future PLC since April, Jon Steinberg brings a wealth of experience and a proven track record in navigating the evolving landscape of new media. Having played instrumental roles at BuzzFeed and successfully launched and sold another media company called Cheddar (which he sold in 2019 for $200m), Steinberg's leadership is characterized by a focus on innovation, digital transformation, and strategic growth. His commitment to building a scaled internet business aligns with Future's vision, and we think Future PLC is in good hands.

Conclusion

Despite facing challenges in a dynamic media landscape, we believe Future plc, under the leadership of Jon Steinberg, is poised for growth. The GAS initiative, coupled with strategic investments, digital transformation, and a focus on monetisation, reflects a commitment to smart initiatives and innovation. As the company navigates market headwinds, the strategic vision outlined by Steinberg positions Future as a dynamic player in the evolving media landscape. For investors seeking long-term opportunities in the media sector, Future plc's forward-looking approach presents a compelling investment case.

RETURNS TABLE  

Month Company Ticker Symbol Purchase Date Current Stock Price (p) Dividend Yield To Date (%) Re-Invested (£) Regular Monthly Investment (£) Purchase Price (p) Sold? Dividend Income (£) Growth with Dividends Growth without Dividends
February 2023 Cranswick PLC CWK 06/02/23 3569.00 1.79% £0.00 £2,118.78 3082.00 Yes £37.93 17.6% 15.8%
March 2023 Avingtrans PLC AVG 06/03/23 370.00 1.02% £0.00 £2,805.08 435.00 No £28.71 -13.9% -14.9%
April 2023 Vesuvius PLC VSVS 03/04/23 490.40 5.48% £0.00 £1,465.86 410.00 No £80.35 25.1% 19.6%
May 2023 Tyman PLC TYMN 02/05/23 304.50 1.73% £0.00 £1,212.35 249.19 No £20.96 23.9% 22.2%
June 2023 PayPoint PLC PAY 05/06/23 541.75 6.67% £0.00 £1,460.29 407.14 Yes £97.42 39.7% 33.1%
July 2023 Pan African Resources PLC PAF 03/07/23 17.94 2.57% £0.00 £1,255.45 12.88 No £32.23 41.9% 39.3%
August 2023 Hikma Pharmaceuticals PLC HIK 01/08/23 1877.00 0.00% £0.00 £879.21 2089.00 No £0.00 -10.1% -10.1%
September 2023 Castings PLC CGS 04/09/23 360.00 1.20% £6,268.97 £889.28 343.63 No £86.03 6.0% 4.8%
October 2023 Kenmare Resources PLC KMR 02/10/23 306.00 0.00% £4,128.93 £1,086.90 416.00 No £0.00 -26.4% -26.4%
November 2023 Pets at Home PLC PETS 06/11/23 269.40 1.52% £2,904.50 £0.00 299.00 No £44.26 -8.4% -9.9%
December 2023 Serco Group PLC SRP 04/12/23 177.10 0.00% £3,517.95 £677.78 158.76 No £0.00 11.6% 11.6%
January 2024 Avingtrans PLC AVG 08/01/24 370.00 0.00% £0.00 £2,335.92 392.00 No £0.00 -5.6% -5.6%

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