Future

LN: FUTR

£479.7m market cap

586p last close

Future is a global platform business for specialist media with diversified revenue streams.

Investment summary

Future has delivered a very good set of FY18 numbers – better than the upgrades put in place with the September update. This came through both the acquisitions and the organic growth as the group leverages its platform, with Media showing organic growth of 40%. There is plenty still to go for and we have again raised our FY19 expectations and published indicative FY20e forecasts. The group now has scale in the important US market, accounting for nearly half of group revenues on a pro-forma basis. In our view, the valuation does not reflect the premium growth or expanding margins.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2017A 84.4 11.0 8.3 17.5 33.5 24.9
2018A 124.6 20.7 17.4 24.0 24.4 34.1
2019E 176.0 33.8 29.3 26.9 21.8 22.1
2020E 179.0 35.4 32.4 30.4 19.3 16.7
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 1.2
Forecast gearing ratio (%) 1
Price performance
%
1m
3m
12m
Actual 25.0 19.6 84.2
Relative* 18.8 17.8 84.0
52-week high/low 586.0p/301.1p
*% relative to local index
Key management
Zillah Byng-Thorne CEO
Penny Ladkin-Brand CFO