A digital-led recovery at Future (FUTR) explains the return to profitability at the full-year stage - the UK publisher is lining up new revenue streams, too. "FutureFolio, our unique tablet software, opens up partnership possibilities to distribute content from other publishers," says chief executive Mark Wood. "We've already signed deals with Jamie Oliver Magazine and Auto Trader, which paves the way."
In the tablet market, Future's online audience has grown 70 per cent to over 50m unique users a month. Digital revenues grew 30 per cent year on year to £20.6m, boosted by Apple's Newsstand - which Future joined in October 2011. Mr Wood aims to get more UK content into the US market, repeating the success of news and reviews website, TechRadar. Since its launch in April, TechRadar US has more than doubled traffic to 6m unique users. Future has also developed a creative solutions digital agency to manage large-scale advertising campaigns. The UK events business is also being scaled up. The dividend could even be reinstated next year.
Indeed, a shift from print to digital is paying off handsomely and the group's full-year adjusted operating profit jumped 68 per cent year on year to £6.9m. Broker Numis Securities, meanwhile, expects adjusted pre-tax profit of £6.8m for 2013, giving EPS of 1.3p (from £4.8m and 1.1p in 2012).
FUTURE (FUTR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 17p | MARKET VALUE: | £57m | |
| TOUCH: | 17-18.5p | 12-MONTH HIGH: | 18p | LOW: 7p |
| DIVIDEND YIELD: | nil | PE RATIO: | 170 | |
| NET ASSET VALUE: | 19p* | NET DEBT: | 23% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 163 | 9.50 | 2.10 | 1.10 |
| 2009 | 153 | 3.70 | 0.90 | 0.90 |
| 2010 | 152 | 5.60 | 1.70 | 1.10 |
| 2011 | 142 | -18.0 | -5.90 | 0.50 |
| 2012 | 124 | 1.10 | 0.10 | nil |
| % change | -13 | - | - | -100 |
| *Includes intangible assets of £95.3m, or 27p a share | ||||
