REG - Smiths News PLC - Business Update

Smiths NewsAnnouncement

20/01/2022 07:05

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RNS Number : 9990Y  Smiths News PLC  20 January 2022

20 January 2022

 

This announcement contains inside information

 

Smiths News plc

("the Company")

 

Business Update

 

To coincide with its Annual General Meeting (being held today at 1130am),
Smiths News plc is today issuing a business update, confirming trading and
strategic progress in line with expectations and reaffirming priorities for
the remainder of the year.

 

 

Trading update

The Board is pleased to report that overall trading in FY2022 to date is in
line with market expectations, with the key elements of sales, sustainable
efficiency savings, operational cost controls and health and safety
performance all collectively on track. Recent uncertainty over the Omicron
variant and subsequent 'Plan B' restrictions has had only limited impact on
the Company's markets and the Board remains confident in the Company's profit
and cash generation as the wider economic environment improves.

 

 

Strategic progress

The Company continues to make excellent progress with its strategic
priorities: namely, to strengthen the core busines and its underlying
financial metrics, founded on reducing bank net debt, while ensuring the
benefits of strong cash generation meet the needs of all stakeholders.

 

The first strategic priority, to reduce bank net debt to below 1x Adjusted
pre-IFRS16 EBITDA, is expected to be achieved by the half-year, marking a key
milestone.  In recognition of this significant progress, in December 2021 the
Company's banking facilities were favourably amended, extending the term by
1.75 years to August 2025 and allowing for a greater share of free cash to be
distributed to shareholders.

 

 

Strategic priorities for FY2022

Our chief priority for the remainder of the year is to deliver on our
commitments through continued close control of operations and capital
management. We remain alert to the inflationary pressures in our markets and
the wider economy and are planning accordingly. Our stated goals for
sustainability and the gradual recovery of our ancillary businesses, which
were impacted by the pandemic, are on track. Finally, we are pursuing a
structured exploration and review of organic opportunities that can provide
for new and incremental revenue streams in the longer term.

 

 

Jonathan Bunting, Chief Executive Officer of Smiths News, said:

"We start the new calendar year with confidence in our plans, underpinned by
the demonstrable headway we have made over the last two years. The delivery of
our commitments to stakeholders, founded on the sustainable value creation of
our core business, remains our chief strategic and trading priority. In this
regard, our people continue to show exceptional dedication and on behalf of
the Board I would like to express my thanks for their essential contributions
to our progress."

 

 

Enquiries:

 Smiths News PLC                                                   Via Buchanan

 Jonathan Bunting, Chief Executive Officer

 Paul Baker, Chief Financial Officer
 www.corporate.smithsnews.co.uk

 Buchanan

 Richard Oldworth / Jamie Hooper / Toto Berger                     020 7466 5000

 smithsnews (mailto:smithsnews@buchanan.uk.com) @buchanan.uk.com

 www.buchanan.uk.com (http://www.buchanan.uk.com/)

 

About Smiths News PLC

 

Smiths News PLC and its core business, Smiths News, is the UK's largest
newspaper and magazine wholesaler, with an approximate 55 per cent. market
share. It distributes newspapers and magazines on behalf of the major national
and regional publishers, delivering to approximately 24,000 customers across
England and Wales on a daily basis. The speed of turnaround and the density of
Smiths News' coverage is critical to one of the world's fastest physical
supply chains.

 

Ancillary businesses include: Dawson Media Direct (DMD) which supplies
airlines and travel points in the UK; and Instore, which offers field
marketing services to retailers and suppliers across the UK.

 

 

Person responsible for arranging release of this announcement:

Stuart Marriner, General Counsel & Company Secretary

Smiths News plc

Rowan House

Cherry Orchard North

Kembrey Park

Swindon

SN2 8UH

email: cosec@smithsnews.co.uk

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