The Motley Fool

Why I’d buy this hot growth stock alongside IGAS Energy plc

Specialist media company Future (LSE: FUTR) delivered pleasing full-year results today driven by organic and acquisitive progress towards what chief executive Zillah Byng-Thorne describes as an ambition to “build a global platform business for specialist media with data at its heart.”

A plan that’s working

She explains that the company aims to focus on enduring content that connects with a substantial and expanding audience base. The figures suggest that the plan is working with revenue 43% higher than a year ago, adjusted operating cash inflow shooting up 160% and adjusted earnings per share following close behind with a 144% rise.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Acquisitions during the period of Imagine, Team Rock and Home Interest serve to increase the size and range of the firm’s offering. Meanwhile, we can see pockets of vibrant growth within the company’s overall revenue performance, such as a 34% organic advance in Media Division revenue, a 107% explosion in eCommerce takings and a 21% uplift from digital displays. Turnover from the magazine division ratcheted up 43% mostly powered by the firm’s acquisitions.

It seems to me that Future is adapting well to the needs of the modern digital media consumer, managing to secure more than 53m monthly online users during the fourth quarter of the trading year. That’s an 18% year-on-year improvement, 12% of which the directors chalk up as organic growth. The share price has responded well to the firm’s progress, up more than 100% since the beginning of 2017. Yet at today’s 385p, the forward price-to-earnings (P/E) ratio works out a little over 18, which looks manageable, suggesting further progress is possible if the company keeps up its strong operational performance.

Financial restructuring boosts growth prospects

I reckon Future could sit well in my portfolio alongside onshore oil & Gas exploration and production company IGAS Energy (LSE: IGAS), which continues to generate exciting potential and is moving closer to profits. After a major financial restructuring and fundraising event earlier in the year, the directors reckon the firm has the capital to deploy on growth projects across its conventional assets and a US$240m carried work programme on its shale acreage. At current oil prices, cash is flowing into the coffers, which bodes well for continuing progress alongside an already well-funded balance sheet.

IGAS claims to be one of the leading producers of hydrocarbons onshore in Britain and in September’s interim report, chief executive Stephen Bowler told us that the capital restructuring has enabled the company to bring forward an active programme of maintenance.”  He also expects incremental projects to boost the firm’s conventional production levels over the medium term.

Mr Bowler reckons that IGAS looks set to contribute “a number” of drilling or flowing wells to what he sees as a “significant level of activity” onshore UK over the coming year or so. Such operational progress could help move the company ever closer to profits, which could result in progress with the share price to reflect the improvement. I think ‘right now’ could be a good time to focus on IGAS and to run your own analysis of the firm’s prospects.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

 
 

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.