REG - National World PLC - Acquisition of MNA and PCS

National WorldAnnouncement

29/09/2023 12:00

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RNS Number : 1948O  National World PLC  29 September 2023

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

 

National World plc

 

("National World," or the "Group")

 

 

Acquisition of Midland News Association Limited and Press Computer Systems
Limited

 

Two strong selling titles add 40 per cent to National World's daily
circulation sales

 

National World, (LSE: NWOR) is pleased to announce two acquisitions which will
strengthen its UK national footprint with a significantly enhanced position in
the Midlands.

 

The Group has acquired Midland News Association Limited, ("MNA") publishers of
the Express & Star based in Wolverhampton and the Shropshire Star. The
Group has also acquired Press Computer Systems Limited, ("PCS") the supplier
of publishing platforms for both MNA and certain other major publishers.

 

As a consequence, the Group will see annualised revenues break through the
£100 million threshold in addition to making it a leading content provider in
the Midlands region, equivalent to its strong market positions in Yorkshire
and Scotland.

 

The Express & Star and its sister paper The Shropshire Star have a
combined daily circulation of approximately 23,000 and were the largest
remaining independent regional assets in England.

 

National World's portfolio in Birmingham and the Midlands is expected to
average 20 million page views per month following the transaction, making it
one of the leading news publishers in the UK's second largest media market
outside London. The Group already publishes Birmingham World through its City
World brands and Insider Media has a strong presence in the region with its
business information service and events.

 

The acquired titles include a range of paid and free weeklies in the Midlands,
Shropshire and Wales plus farming and lifestyle magazines.

 

PCS provides Software-as-a-Service technology solutions to publishers,
enabling closer collaboration across editorial, advertising and production
processes. It is widely used in the local news publishing industry and will
support the Group's transition into a fully digitised publishing operation.

 

The consideration for the acquisitions, which excluded certain material real
estate assets, was £11 million paid in cash at completion.

 

Commenting on the acquisitions, National World's Chairman, David Montgomery,
said:

"These iconic and premium brands will strengthen our footprint, improving our
Midlands and national rankings in UK media. Our innovations in TV and video,
specialist content and our move to greater automation, will enhance the future
performance of these new additions to the Group.

 

"The greater scale will help underpin our accelerating transition to a
multi-platform content business, focused on creative talent. We continue to
re-train and re-equip both editorial and commercial staff to serve all
platforms - print, online, TV and video, events, business information and
e-commerce."

 

Post completion the Group has in excess of £10 million of cash with
outstanding debt, (repayable in December 2023) of £1 million. The Group has
paid a total of £14 million for six acquisitions completed in 2023, all
funded from its existing cash resources. In 2024, the combined acquisitions
are expected to contribute revenues of approximately £23 million and EBITDA
of over £4 million, including the benefit of operational efficiencies.

 

The person responsible for arranging for the release of this announcement on
behalf of National World plc for the purposes of UK MAR is David Montgomery,
Executive Chairman.

 

- Ends -

 

Enquiries:

 

 National World plc

 David Montgomery

 c/o Montfort Communications

 Dowgate Capital Limited       +44 (0)20 3903 7715

 David Poutney

 James Serjeant

 Montfort Communications

 Nick Miles                    +44 (0)77 3970 1634

 Olly Scott                    +44 (0)78 1234 5205

 

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