Magazine publisher Future (FUTR) managed solid gains on a down day for the markets as it guided for full year numbers at the top end of expectations. The shares were up 6.8% to £12.92.

The company behind titles like TechRadar and Marie Claire UK reported the integration of its TI Media acquisition was on track with performance also benefiting from tight cost control and a strong audience for its digital content.

On 30 October 2019, when the acquisition of TI Media was announced, Future stated that expected cost synergies of £15 million per year would be achieved within two years.

The group outlined that total restructuring costs of £9 million across both back-office and front-office functions and other overhead costs will be incurred by the end of the September 2021 financial year to deliver these cost savings.

Progress on the delivery of these savings is well underway, with the original synergies being validated, and annual cost synergies of over £9 million already secured, of which £3 million will benefit the current financial year to 30 September 2020.

The company also announced it would pay back the support it received from the Government's furlough scheme. Demonstrating it is a good corporate citizen but also a show of confidence in the outlook.

Future’s model is built on acquiring specialist titles cheaply and then plugging them into an existing platform in order to generate revenue from their content and brands through a mix of digital advertising, e-commerce, getting readers to click through to partnered retailers and events.

Numis analyst Gareth Davies said: ‘Future has released a strong trading update that confirms trading in 2020 to be towards the top end of market expectations, driven by strong audience growth, tight cost control and the acceleration of synergies since the TI Media acquisition.

‘The TI Media integration is going to plan with expected cost synergies and cost of delivery confirmed, with good progress being made against management's three key priorities.’

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Issue Date: 20 Jul 2020