Future PLC Share Price Crashed 32.8% Amid Falling FY Revenues

The Future plc (LON: FUTR) share price crashed to a maximum of 32.8% as of 11:12 GMT after releasing its full-year results for the year ending 30 September 2023. The company announced a revenue of £788.9 million for the fiscal year, marking a 4% decrease from the previous year's £825.4 million. 

The decline was attributed to a 10% organic drop, mitigated by favourable foreign exchange impacts, mainly from the USD, and contributions from recent acquisitions. Regionally, UK revenues saw a 4% organic decline despite solid growth in price comparison and digital advertising resilience due to strong market positions. 

In the US, revenues dropped organically by 19%, with media revenues suffering due to a focus on consumer technology verticals and less advanced strategic execution than in the UK.

The company's media revenue organically declined by 13%, impacted by a challenging advertising market and consumer pressure on affiliate product businesses. This was somewhat balanced by solid performance in the price comparison sector. Magazine performance, down 5% organically, remained resilient due to a higher subscription ratio.

Despite inflationary pressures, profitability was stable, with an adjusted operating profit margin of 32%, only a one percentage point decrease from the previous year. The adjusted operating profit fell 6% to £256.4 million, and statutory operating profit decreased 7% to £174.5 million.

The Group maintained strong cash generation with an adjusted free cash flow of £253.2 million, equating to 99% of its adjusted operating profit. Cash generated from operations was £241.0 million. 

Regarding capital allocation, the company completed three acquisitions for approximately £45 million and initiated a £45 million share buyback programme, with £13.1 million completed by September's end.

The company launched its Growth Acceleration Strategy (GAS), aiming to capitalise on market opportunities through a two-year investment programme of £25-£30 million.

Jon Steinberg, Future's Chief Executive, said: “Looking back at the prior year, we have delivered a resilient performance amid a challenging market, with a resilient full-year profit performance and strong cash generation, reflecting the diversified nature of our business and the leadership positions we retain across verticals. Since joining as CEO in April this year, I have worked with the Board and leadership team to review our strategy with the clear aim of ensuring we are optimally positioned for future growth when the macro backdrop improves.”

Future plc share price. 

The Future plc share price crashed 32.83% to trade at 519.8p from Wednesday’s closing price of 773.8p.