Bright Future: Publisher ups profits forecast as it seals deal with GoCompare

Future publishing boss Zillah Byng-Thorne today rounded off a big week for the Marie Claire and Total Guitar publisher by delivering a big upgrade to City profit forecasts.

The update, which sent shares 10% higher, comes days after the group took ownership of price comparison site GoCompare following a deal unveiled in November.

The GoCo takeover is one of a number overseen by Byng-Thorne, who has been at the helm since 2014. Others include Country Life and Homes & Gardens publisher TI Media in April and this month’s deal to buy Australian price comparison site Mozo.

There’s no sign that the deal making is a distraction after Future revealed that profits for the year to September are currently well ahead of market expectations.

Online audience growth during the pandemic continues to boost the group, with the media division seeing robust digital advertising around Black Friday and Christmas.

The update and completion of the GoCo acquisition triggered some big City upgrades today, with Numis Securities lifting its operating profit forecast by 43% to £148 million.

The broker’s price target also jumped to 2,462p, which compares with the 2088p seen today after shares surged 10%.

The stock had wobbled after the GoCo deal was announced but investors now appear to be warming to the logic of the acquisition, which extends Future’s reach into financial services.

N+1 Singer analyst Caspar Erskine today highlighted the “compelling strategic rationale” and said it boosted Future’s mission to inform consumer purchase decision making. He has a “buy” recommendation and 2,400p price target.

The business has doubled in size since 2018, with the portfolio of more than 200 brands built by Byng-Thorne now generating 70% of revenues outside of print.

Despite the progress, shareholders delivered a bloody nose to the company at its AGM last week when more than 25% of votes went against Future’s remuneration report and policy. This included plans for a bonus scheme with the potential to pay £95 million to its 2,300 staff after a period of three years.