MARKET REPORT: Future is bright for shares in UK publisher

The latest trading update from magazine publisher Future proved compelling reading for investors as shares in the group soared.

The company, whose 250 titles include everything from Marie Claire, Homes and Gardens and Country Life to Four Four Two, Golf Monthly and Yachting World, said it was on course to hit its profit target for the year.

Analysts have pencilled in £254m of profit for the financial year ending today.

Future hailed a ‘resilient performance despite continued macroeconomic volatility’ and said reader numbers have ‘stabilised’ since April. Better still, it said there has been ‘positive month-on-month momentum’ since July.

There was a note of caution, however, with the group warning: ‘Overall trading conditions remained mixed, with challenges in consumer spending and the digital advertising market.’

But with revenues at its Go Compare price comparison website picking up over the past six months, shares jumped 24.4 per cent, or 174.5p, to 889p. The stock remains down around 30 per cent this year, however, and more than 75 per cent since its pandemic peak two years ago.

With revisions to official figures showing the economy fared far better than previously thought since Covid struck – recovering faster than France and Germany – the London stock market ended the month on a high.

The FTSE 100 rose 0.08 per cent, or 6.23 points, to 7608.08 and the FTSE 250 gained 1 per cent, or 180.74 points, to 18279.42.

A bumper set of figures from US sportswear giant Nike on Thursday put a spring in the step of JD Sports, whose shares rose 4.8 per cent, or 6.85p, to 149.7p. Other retailers on the march included Marks & Spencer after an upgrade from analysts at JP Morgan. M&S added 0.6 per cent, or 1.3p, to 236.6p – its highest level since January last year.

Shares in events and conferences firm Ascential, which runs the Cannes Lions advertising festival, rose 5.7 per cent, or 11.2p, to 209p amid reports it is in talks to sell consumer data business WGSN to private equity. According to Sky News, Ascential is holding discussions with private equity advisory firm Apax Partners about a deal, with talks said to be at an advanced stage. A deal could be reached within a fortnight.

Flooring group Victoria, which makes red carpets for the Royal family, reported a tenth consecutive year of rising revenue and profit as it sought to put accounting concerns behind it.

Executive chairman Geoff Wilding hailed a historic achievement as sales surpassed 200m square metres of flooring products and revenues topped £1.45billion. Shares, however, dipped 1.3 per cent, or 7p, to 520p. The update came days after Victoria’s accounts revealed auditors Grant Thornton have flagged concerns about fraud risks at one of its subsidiaries, Hanover Flooring. In yesterday’s update, Wilding said: ‘We had identified the issues at this small subsidiary and allocated additional experienced finance resources who have put appropriate controls in place.’

Asset manager Rathbones appointed Investec Wealth boss Iain Hooley as its chief financial officer as Jennifer Mathias steps down to take the newly created position of group chief of staff.

The company said Mathias will focus on integrating the UK wealth business of Investec following the £839m acquisition announced in April. Rathbones fell 1 per cent, or 18p, to 1738p.

Digital 9 Infrastructure, which invests in everything from underwater fibre cables to data centres, surged 15.5 per cent, or 5.2p, to 38.7p as it clawed back some of the previous session’s losses.

The shares fell nearly 40 per cent on Thursday after it posted half-year losses of £57.4m.