REG - Connect Group Plc - Interim Management Statement <Origin Href="QuoteRef">CNCTC.L</Origin>

Smiths NewsAnnouncement

06/09/2014 02:41

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RNS Number : 6578L
Connect Group PLC
08 July 2014 
 
Connect Group PLC 
 
('Connect Group' or "the Group") 
 
INTERIM MANAGEMENT STATEMENT 
 
Connect Group PLC ("the Group") a leading specialist distributor operating in
three divisions; News & Media, Books and Education & Care, is today issuing
its Interim Management Statement covering the 44 week period to 5 July 2014. 
 
Total Group revenues increased 0.2% year on year and performance for the Group
remains broadly in line with current market expectations for the full year. 
 
The performance of each division is as follows; 
 
·     Connect News & Media; News revenues increased by 0.1% driven by strong
World Cup sticker sales. Like for like revenues decreased by 2.1% with both
newspaper and magazine performance continuing at recent robust run rates.
Consequently, full year performance will be above previous expectations. Media
revenues decreased by 3.2% and on a like for like basis by 2.8%. 
 
·   Connect Books; revenues increased by 2.6% due to recent acquisitions and
by the continued strong performance of Wordery. Like for like revenues
decreased by 3.2% reflecting increased pressure across other channels. Recent
recovery actions expected to reduce costs and increase margins are being
delivered, although as a result of continued sales pressure particularly in
Library services and Academic markets we expect full year performance will be
below previous expectations. 
 
·   Connect Education & Care; revenues increased by 2.2% and on a like for
like basis by 2.2%. Core revenues were up 4.4% on a like for like basis with
the Education and Early Years channels performing more strongly than the
smaller Care channel. Momentum is building for the key peak trading period
which has started as planned and full year performance remains in line with
previous expectations. 
 
There has been no change in the underlying financial condition of the Group
since the half year ended 28 February 2014 and the Group continues to operate
well within its bank facilities. 
 
The Group will announce its preliminary results for the twelve months ending
31 August 2014 on 15 October 2014. 
 
Note: The following definitions apply consistently throughout Connect Group
PLC results 
 
(1) Like for like revenues exclude the impact of gains and losses, including
contracts, new business and acquisitions reported in the current or prior year
total sales. 
 
Enquiries: 
 
 Connect Group PLC                                          
 Mark Cashmore, Group Chief Executive   Tel: 01793 563641   
 Nick Gresham, Chief Financial Officer                      
                                                            
 Buchanan                                                   
 Jeremy Garcia / Gabriella Clinkard     Tel: 020 7466 5000  
 
 
About Connect Group PLC: 
 
Connect Group PLC is a leading specialist distributor operating in large and
diverse markets. The Group has three separate divisions, connecting suppliers
to customers in an efficient, knowledgeable and service oriented way: 
 
Connect News & Media - Encompassing: Smiths News, the UK's largest news
wholesaling business with an approximate 55% market share, distributing
newspapers and magazines on behalf of all the major national publishers as
well as a large number of regional publishers. Smiths News serves
approximately 30,000 customers across England and Wales, supplying large
general retailers as well as smaller independent newsagents; and Dawson Media
Direct, an international media direct business supplying newspapers, magazines
and inflight entertainment technology and content to over 80 airlines in 50
Countries, 
 
Connect Books - Combining a number of recognised brands in print and digital
bookselling, including Bertram's, Dawson Books and Wordery. A leading
distributor of physical and digital books, the division serves over 8,200
customers in approximately 100 countries, with over 200,000 in stock titles
and access to over a further 7 million consumer and 20 million academic
titles, 
 
Connect Education & Care - A leading independent supplier of consumables
through The Consortium and West Mercia Supplies with an approximate 5% market
share. The division serves over 30,000 customers with an extensive range of
over 40,000 products across a branded, own brand and value range, including
stationery, arts and craft and cleaning. 
 
This information is provided by RNS
The company news service from the London Stock Exchange