MARKET REPORT: Future shares plummet after shock exit of boss

Shares in magazine publisher Future crashed to a five-month low after its boss quit just 18 months into the job.

In an update that caught investors by surprise, the FTSE 250 firm said Jon Steinberg plans to step down next year to return to the US with his family.

The publisher of Country Life, Homes & Gardens, FourFourTwo and Marie Claire said it has started the hunt for a successor.

Analysts at Peel Hunt said Steinberg’s departure ‘will cast a shadow over the investment case until a successor is found’.

Shares in Future tumbled 19.3 per cent, or 189.5p, to 794.5p. That was their lowest level since May.

Shock: In an update that caught investors by surprise, Future said Jon Steinberg plans to step down next year to return to the US with his family

Steinberg, the former chief executive of DailyMail.com in North America who has also worked for BuzzFeed and Google, took the helm in April last year following the departure of long-term boss Zillah Byng-Thorne. 

‘Future’s chief executive didn’t last long in the job,’ noted Russ Mould, investment director at broker AJ Bell. ‘Investors have taken this to be a bad sign and will be asking why Steinberg isn’t sticking around. Has he spotted problems down the line or has he simply been offered a better opportunity elsewhere?’

The FTSE 100 slid 0.3 per cent, or 26.88 points, to 8358.25 and the FTSE 250 rose 0.2 per cent, or 48.66 points, to 21,149.58. Chinese-facing stocks made gains despite a slowdown in the world’s second biggest economy. Official figures showed output rose by 4.6 per cent in the third quarter of the year – the slowest pace since early 2023. But investors remain hopeful that Beijing’s efforts to kick-start the economy will bear fruit.

Asia-focused Prudential rose 2.8 per cent, or 18.6p, to 673.4p and luxury goods giant Burberry gained 0.5 per cent, or 3.4p, to 691p.

Miners were also on the rise on hopes of renewed demand for raw materials from China. With gold, iron ore and copper prices higher, Anglo American advanced 1.8 per cent, or 42p, to 2379.5p, Rio Tinto rose 1 per cent, or 49.5p, to 4995.5p, Antofagasta gained 1,5 per cent, or 26.5p, to 1829p, Glencore added 1.4pc, or 5.5p, to 408.7p and Fresnillo closed 2.7 per cent, or 18.5p better off at 703p.

Frasers Group, the retail empire controlled by Sports Direct tycoon Mike Ashley, urged Mulberry to give its 150p a share takeover bid ‘due and proper consideration’. Frasers tabled its £111m offer for the troubled British handbag maker last week but yesterday noted ‘it is still yet to receive formal feedback from the board of Mulberry’ on the proposal.

Frasers also said it ‘has sought to engage’ with investment vehicle Challice, which owns 56 per cent of Mulberry. Challice has said it has ‘no interest’ in selling to Frasers, which is Mulberry’s second-biggest shareholder with 37 per cent.

In a separate takeover situation, Frasers said it will vote in favour of the acquisition of fashion group N Brown by Joshua Alliance.

Frasers owns 20 per cent of N Brown, whose brands include Simply Be and JD Williams.

Frasers shares rose 0.5 per cent, or 4p, to 825.5p, Mulberry added 2 per cent, or 2.5p, to 130p and N Brown inched up 1 per cent, or 0.4p, to 39.1p.