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(Alliance News) - Shares in Future PLC soared on Thursday after it launched a new share buyback and said it returned to revenue growth in the second quarter.
Shares in the Bath, England-based online magazine publisher and owner of price comparison website Go Compare, leapt 17% to 1,016.40 pence in London on Thursday. They earlier traded as high as 1,091.00p.
In the half-year to March, Future said pretax profit fell 30% to GBP46.6 million from GBP66.4 million a year prior.
Profitability was mainly impacted by an adverse revenue mix and investment from the previously announced Growth Acceleration Strategy, Future said.
The GAS strategy, announced in December, is a two-year investment programme of GBP25 million to GBP30 million aimed at accelerating growth.
Revenue fell 3.3% to GBP391.5 million from GBP404.7 million.
Future said it returned to year-on-year revenue growth in the second quarter with organic revenue growth of 3%.
UK revenue grew by 3% on an organic basis with very strong growth in price comparison service Go.Compare, up 30%, and good growth in business to business.
US revenue declined by 11% on an organic basis, with an improving trend through the second quarter.
Future said it expects to deliver revenue growth in the second half with an adjusted operating margin of 28%. In the first half of the financial year, the adjusted operating margin was 27%.
"The stabilisation of trends and return to group organic revenue growth in [the second quarter] give us confidence in delivering full year performance in line with expectations," the company said.
Longer-term, Future is confident that the execution of the GAS investment programme will drive accelerating organic revenue growth of mid-single digit compound annual growth over the next three years with an adjusted margin of 28% to 30%.
No dividend was declared, unchanged from a year ago.
But Future plans a further return of up to GBP45 million via a share buyback programme which will start shortly.
By Jeremy Cutler, Alliance News reporter
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