What synergies Future Plc has achieved through the acquisition of GoCo and Mozo?

Summary

• Future Plc had reported a revenue surge of 53% during FY20 ended on 30 September 2020.
• FUTR had a net debt of £62.1 million as of 30 September 2020.
• FUTR had completed the acquisition of Mozo for approximately AUD$30 million on 02 February 2021.
• FUTR had paid a final dividend of 1.60 pence per share on 16 February 2021.

Future Plc (LON:FUTR) is the LSE listed media stock. FUTR’s shares have generated a return of approximately 36.83% in the last 12 months. It is listed on the FTSE 250 Index. It was incorporated in 1999.

On 19 May 2021, FUTR will announce interim results for the six months period ending on 31 March 2021.

Business Model

Future is a global media Company engaged in the publishing of websites, magazines and applications. The Company operates across two broader geographic segments – the UK and the U.S. Moreover, it has two broader product segments: the Media division and the Magazine division.

(Source: Company website)

Trading Update (for the four-month period ended 31 January 2021 (4M H1 FY21), as of 19 February 2021)

• The revenue of FUTR had benefitted during Black Friday and the Christmas period.
• The top-line business performance of the media segment remained resilient during the period, primarily driven by eCommerce and digital advertising.
• The Magazine division performed on the expected lines during the period after a successful acquisition of the TI Media business.
• FUTR had completed the acquisition of GoCo Group as it would benefit the price comparison eCommerce capabilities into the services segment. Earlier, it was restricted to products only.
• The Company had completed the acquisition of Mozo for approximately AUD$30 million on 02 February 2021. It would play an important role in FUTR’s revenue diversification strategy.

FY20 Financial Highlights (for twelve months period ended 30 September 2020, as on 25 November 2020)

 (Source: Company result)

• FUTR had reported a 53% jump in its revenue to around £339.6 million during FY20, positively driven by a blend of organic growth and positive contribution from acquisitions.
• However, the organic revenue growth remained at 6% as the diversified strategy offset the adverse Covid-19 impact. The media segment had shown organic revenue growth of 23%, while the magazine segment had witnessed a revenue decline of 29% during the period.
• The adjusted operating profit had surged by 79% to £93.4 million during FY20 compared to FY19. Similarly, the adjusted operating profit grew by 400 basis points to 28%.
• The adjusted free cash flow stood at £96.0 million during FY20, which remained at around 103% of adjusted operating profit.
• The Group had paid the FY20 final dividend of 1.6 pence per share on 16 February 2021.
• FUTR had a net debt of £62.1 million as of 30 September 2020, while it was £40.3 million as of 30 September 2019.

Share Price Performance Analysis of Future Plc

(Source: EODHD/Others, chart created by Kalkine group)

Shares of Future Plc were trading at GBX 1,964.00 and were up by close to 3.26% against the previous closing price as on 19 February 2021, (before the market close at 12:25 PM GMT). FUTR's 52-week Low and High were GBX 489.50 and GBX 2,185.00, respectively. Future Plc had a market capitalization of around £2.29 billion.

Business Outlook

The Company had delivered a strong financial performance in FY21 so far as it had produced a growth during the first four months of FY21. FUTR had accelerated its strategical progress through the acquisition of T1 Media. Furthermore, the Company has a well-placed strategy to develop a leading specialist global media platform driven by technological excellence and diversified brands. FUTR will be widening its geographic footprints and increase its customers through the acquisition of Mozo and GoCo. The Company had anticipated full-year FY21 to remain ahead of expectations, and FUTR is well-positioned to deliver sustainable growth and achieve strategic objectives.