MARKET REPORT: The future looks bright for UK publishing stocks
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 track to meet its profit target for the year.
Analysts have forecast £254 million in profits for the financial year ending today.
Fascinating read: Future said it was on track to meet its profit target for this year
Future praised a “resilient performance despite continued macroeconomic volatility” and said readership numbers have “stabilized” since April. Better yet, there has been ‘positive month-on-month momentum’ since July.
However, there was some caution in the group’s warning: “Overall trading conditions remained mixed, with challenges in consumer spending and the digital advertising market.”
But with revenues on the Go Compare price comparison website rising over the past six months, shares rose 24.4 per cent, or 174.5p, to 889p. However, the stock remains down about 30 percent this year, and down more than 75 percent since the pandemic peak two years ago.
With revisions to official figures showing the economy has done much better than previously thought since Covid struck – and recovered faster than France and Germany – London’s stock market ended the month on a high.
The FTSE 100 rose 0.08 percent, or 6.23 points, to 7608.08 and the FTSE 250 gained 1 percent, or 180.74 points, to 18279.42.
A set of figures from US sportswear giant Nike on Thursday sent the share price of JD Sports surging, with shares rising 4.8 per cent, or 6.85p, to 149.7p. Other retailers joining included Marks & Spencer, after an analyst upgrade at JP Morgan. M&S added 0.6 percent, or 1.3p, to 236.6p – the highest level since January last year.
Shares in events and conferences company Ascential, which runs the Cannes Lions advertising festival, rose 5.7 percent, or 11.2p, to 209p, amid reports that it is in talks to sell consumer data company WGSN to private equity. According to Sky News, Ascential is in discussions with private equity consultancy Apax Partners over a deal, with discussions reportedly at an advanced stage. An agreement could be reached within fourteen days.
Flooring group Victoria, which makes red carpets for the royal family, reported rising sales and profits for the 10th year in a row as it tried to put accounting concerns behind it.
Executive chairman Geoff Wilding hailed a historic achievement as sales exceeded 200 million square meters of flooring products and sales reached £1.45 billion. However, shares fell 1.3 percent, or 7p, to 520p. The update came days after Victoria’s accounts revealed that accountant Grant Thornton raised 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 put the appropriate controls in place.’
Asset manager Rathbones has appointed Investec Wealth boss Iain Hooley as chief financial officer, as Jennifer Mathias steps down to take up the newly created role of group chief executive.
The company said Mathias will focus on integrating Investec’s UK wealth business following the £839 million acquisition announced in April. Rathbones fell 1 percent, or 18p, to 1738p.
Digital 9 Infrastructure, which invests in everything from underwater fiber optic cables to data centers, rose 15.5 percent, or 5.2 cents, to 38.7 cents, recovering some of the previous session’s losses.
Its shares fell almost 40 percent on Thursday after it posted a half-year loss of £57.4 million.