MARKET REPORT: Future soars as outcomes make for good studying

There was some good reading for shareholders of Marie Claire publisher Future, with news of a return to growth and plans for a £55million share buyback.

The firm, which also owns price comparison website GoCompare, expressed confidence in meeting market expectations for the current financial year, even though profit for the year to September slumped by 25 per cent. 

That reflected a hit from investment in Future’s Growth Acceleration Strategy, launched in December 2023, which contributed to a fall in the group’s operating profit margin.

Future’s full-year sales were flat, but organic basis revenue rose by 1 per cent, including second half growth of 5 per cent. 

After this financial year, the company expects to deliver accelerating organic revenue growth, in line with market expectations. In response, Future was a top FTSE 250 gainer, jumping 9.7 per cent, or 95p to 1075p. 

The FTSE 100 index rose 0.16 per cent, or 13.57 points to 8349.38 while the FTSE 250 was flat at 21,001.06.

Shares up: Magazine publisher Future was boosted by news of a return to growth together with plans for a new £55m share buyback 

Diageo was a FTSE 100 gainer as analysts at Jefferies raised their rating for the drinks giant to ‘buy’ on confidence in rising spirit sales and a renewed focus on growth, profit and cash under a new, heavyweight finance chief.

Brokers also boosted insurer Admiral by 3.5 per cent, or 91p to 2715p as Deutsche Bank analysts raised their rating to ‘buy’ as part of an upbeat review of the European sector. 

They also increased their rating for Aviva to ‘buy’, boosting the spurned Direct Line bidder’s stock by 1.9 per cent, or 9p, to 489.4p.

But Taylor Wimpey was among the fallers, losing 1.1 per cent, or 1.4p, to 128p after JPMorgan Cazenove analysts downgraded their rating for the housebuilder to ‘neutral’ warning of earnings risk ahead. 

They said builders had endured a turbulent 2024, but they maintained a positive overall stance on the housing sector and see scope for it to trend higher in 2025.

The analysts also upgraded two FTSE 250-listed builders, with Bellway raised to overweight and Crest Nicholson upped to neutral. Bellway gained 1.6 per cent, or 40p to 2534p, while Crest Nicholson slipped 1.5 per cent, or 2.6p to 169.8p.

Another builder, Vistry – whose demotion from the FTSE 100 was confirmed this week – rose on news that it would build more than 900 homes in East London in a joint venture with London Legacy Development Corporation. 

Vistry rose 0.9 per cent, or 6p, to 664.5p.

Another riser was Wood Group, up 1.3 per cent, or 0.85p, at 65.55p after signing three big deals with BP to provide engineering and project delivery services for their capital projects worldwide.

Among the small caps, Brand Architekts soared 95.6 per cent, or 22.7p, to 46.7p as it agreed to be taken over by AIM-listed cosmetics peer Warpaint in a £13.9million deal. 

The bid has the backing of Peter Gyllenhammar, who owns a quarter of Brand Architekts. Warpaint rose 2.3 per cent, or 12p, to 536p.

But Ebiquity dropped 15.6 per cent, or 3.5p, to 19p as the media and marketing consultancy said that, while its second half had been stronger, the final months of the financial year were not meeting all of its high expectations.