Future remain confident that COVID-19 will not hurt profit levels

Future plc (LON:FUTR) have remained confident that their annual results will not be impacted by the current epidemic of coronavirus.

The firm noted that it has decided to cancel two of its’ biggest events, which are e Photography Show and Homebuilding & Renovating Show.

Both these events had been scheduled for March however the Photography Show is now expected to take place in September, while the National Homebuilding & Renovating Show is scheduled for July.

Shareholders will remain optimistic – as both these events even with the rescheduling still fall within Future’s current financial year – which ends on September 30.

The firm commented:

“The decision to postpone has been agreed in partnership with the headline sponsors of both events and in anticipation of the requirements of other sponsors and exhibitors. We do not expect any impact on profit as a result of postponing these events, while the decision to delay in a timely manner means we can avoid unrecoverable costs. We have a number of other smaller events, both in the UK and the US, over the coming months, however their impact to the wider group is not material. A decision will be made regarding each event based on the local market dynamics.

Overall, we are seeing limited impact of Coronavirus in our day-to-day business model; our strategy is working well in terms of audience, product and end market diversification. The fundamentals of our business have not changed, our headline audience numbers continue to be strong, and our operating disciplines mean that we are well placed to meet the challenges and opportunities arising from these dynamic market conditions.

Whilst the Board continues to monitor the situation closely, the Group does not expect any impact on profit as a result of postponing these events.”

Future’s annal results still set to beat expectations

In February, Future saw their shares in green as the firm reinstated their confident sentiment in beating Interactive expectations.

The British media firm said that it expects its annual results to be ahead of market expectations, despite both political and economic uncertainties affecting many British businesses.

Following the strong trading form, Future said that they can expect financial year results to be  “materially ahead of current market expectations”.

Interestingly, the firm saw audience members across its media division rise which caused the surge in strong organic revenue.

Future also saw higher conversion off margin revenue in eCommerce and digital display advertising.

For its financial year ended September 30, 2019 the company posted pretax profit of £12.7 million on revenue of £221.5 million.

The magazine and media brand concluded by saying that it had carried strong trading momentum across the four month period, which ended on January 31st.

Shares in Future plc trade at 1,038p (-1.33%). 11/3/20 13:57BST.

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