Morning folks,

I'm looking at these today:

  • Future (LON:FUTR) - trading update - ahead of expectations 
  • Gfinity (LON:GFIN) - trading update - slightly ahead of expectations 
  • GAN (LON:GAN) - update, sounds positive
  • Science (LON:SAG) bids for Frontier Smart Technologies (LON:FST)
  • If I have time, I will scroll back and look at Creightons (LON:CRL).

Future (LON:FUTR)

  • Share price: 1072p (+11%)
  • No. of shares: 82.5 million
  • Market cap: £884 million

Update on current trading and Board change

This is a short trading update, so let's just briefly confirm what it says:

  • more positive trends, performance tracking ahead of expectations
  • The CFO is becoming "Chief Strategy Officer" from January 1st, 2020. A new CFO will be found before then.

My view - I don't have a strong view on Future's financial prospects, but I can comment on the CFO movement. 

It's worrying when a CFO steps down. And it's more worrying when you have a complicated, acquisition-led strategy which a new CFO will need to take over.

In this particular case, we have a CFO moving into a new, non-Board position. Stepping down from the Board means having less overall influence, I think, even if the new title sounds important. While each case is different, a move like this can sometimes be the prelude to the individual leaving the company.

I understand that shareholders in Future have been extremely active this morning, with possible explanations for what has happened.

In my view, the CFO moving into a non-Board role is net neutral for shareholders. If the CFO was unhappy with her prior work for the company, or could predict bad news in the short-term, she would have resigned and moved on as quickly as possible.

For her to stay around means that she still believes in the company's prospects, at least to some extent. It also means that she could potentially help her successor to deal with particular problems, if it is needed.

It also means that Future has the opportunity to hire someone for the next phase of the company's growth.

Changing CFO every four or five years is not so unusual, after…

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