REG - National World PLC - Trading update

National WorldAnnouncement

26/05/2022 07:00

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RNS Number : 8469M  National World PLC  26 May 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU (WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "EUWA")) ("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

 

("the Company" or the Group")

 

 

Trading update for the 21 week period ending 28 May 2022

 

 

National World plc issues the following trading update for the 21 week period
to 28 May 2022 ("the period") ahead of its Annual General meeting on 26 May
2022.

 

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

 

"We have had a robust start to 2022. Despite a more uncertain trading
environment, we are accelerating our transformation into a premium content and
sales business across all platforms. We continue to launch new products,
invest in organic growth, enhance heritage assets and streamline our
infrastructure to create further efficiencies.

 

Management is pursuing acquisition opportunities to build scale and enhance
shareholder value."

 

Trading

Revenue for the period is expected to grow by 4% year on year with 5% growth
in the first quarter and growth of 1% in April and May.

 

Digital revenue is expected to grow by 38% year on year for the period, with
continuing strong growth of 28% in April and May. Whilst the war in Ukraine
has created volatility in audience numbers during the period, the revenue
impact has been mitigated by stronger yields and increased video advertising,
(the latter almost doubling year-on-year).

 

Print revenue is expected to decline by 2% in the period with advertising
revenue increasing by 3% and circulation revenue falling by 7%. A marginal
decline in print revenue in the first quarter has been offset by a decline of
4% in April and May driven by stronger comparatives last year.

 

Our national site, nationalworld.com, continues to deliver strong growth with
monthly page views increasing to 20 million in April 2022, one year after its
launch. As well as establishing this UK wide footprint from a limited regional
presence, National World has launched seven Metro World brands into all major
centres, including London, Birmingham and Manchester. This online-only
portfolio is being further extended by three cities.

 

Careful cost management continues to support the Group's digital investment
and helps it mitigate the impact of newsprint price rises and other
inflationary cost pressures.

 

Financial position

The Group maintains a strong financial position with a cash balance of c.£25
million at the end of May offset by £1.0 million of outstanding loan note
debt and a £2.5 million deferred consideration.

 

Outlook

The trading environment is challenging with market expectations of a
significant slowdown in the UK economy impacting consumer confidence, driven
by rising inflation and interest rates. However, the Board remains confident
that investment in and development of our digital business together with
careful management of the cost base will support profits and cash flow. At
this stage, the Board expects performance for the year to be in line with the
Company's expectations

- Ends -

 

For the purposes of UK MAR the person responsible for arranging for the
release of this announcement on behalf of National World is Vijay Vaghela,
Chief Operating Officer.

 

Enquiries:

 

 National World plc

 David Montgomery

 Vijay Vaghela

 c/o Montfort Communications

 Montfort Communications

 Nick Miles                    +44 (0)77 3970 1634

 Olly Scott                    +44 (0)78 1234 5205

 

Forward-looking statements

 

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will", or "should" or, in each case, their negative or
other variations or comparable terminology. These forward-looking statements
include matters that are not historical facts. They appear in a number of
places throughout this announcement and include statements regarding the
directors' current intentions, beliefs or expectations concerning, among other
things, the Company's results of operations, financial condition, liquidity,
prospects, growth, strategies and the Company's markets. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances. Actual results and developments could differ
materially from those expressed or implied by the forward-looking statements.
Forward-looking statements may and often do differ materially from actual
results. Any forward-looking statements in this announcement are based on
certain factors and assumptions, including the directors' current view with
respect to future events and are subject to risks relating to future events
and other risks, uncertainties and assumptions relating to the Company's
operations, results of operations, growth strategy and liquidity. Whilst the
directors consider these assumptions to be reasonable based upon information
currently available, they may prove to be incorrect. Save as required by
applicable law or regulation, the Company undertakes no obligation to release
publicly the results of any revisions to any forward-looking statements in
this announcement that may occur due to any change in the directors'
expectations or to reflect events or circumstances after the date of this
announcement.

 

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