REG - Smiths News PLC - Post Close Trading Statement

Smiths NewsAnnouncement

04/10/2023 07:15

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RNS Number : 5685O  Smiths News PLC  04 October 2023

This announcement contains inside information

4 October 2023

 

Smiths News plc

("the Company")

 

Post Close Trading Update

 

Smiths News is pleased to report a good trading performance in the second half
of FY2023 ("H2"), with Adjusted Operating Profit for the 52-week period ended
26 August 2023 expected to be at least in line with market expectations of
£38.3m, reflecting year-on-year growth.

 

The Company's overall revenue has increased by 0.2%, driven by strong cover
price rises and additional sales from the World Cup and one-off news events.
Meanwhile, the securing of sustainable operational efficiencies and an
improved contribution from adjacent categories has mitigated the impact of
inflation in line with management's planning assumptions.

 

In the light of this good trading performance, the Board expects to recommend
a final dividend for FY2023 of no less than 2.7p per ordinary share held,
taking the total dividends for the year up to the full distribution
permissible under the Company's current banking facilities (£10m per
financial year), for payment in February 2024.

 

The Company will report further on its performance and strategic progress in
our preliminary results, which are expected to be published on 8 November
2023.

 

Jonathan Bunting, Chief Executive Officer, commented:

 

"In what has been a challenging period for the wider economy, our strategy of
securing operational efficiencies, while enhancing core operations and
developing adjacent revenues, has been central to mitigating the impacts of
inflation. We remain focused on providing an excellent service to our industry
partners and expect to continue delivering a consistent financial
performance."

 

Ends

 

 

Enquiries:

 Smiths News PLC                                                   Via Buchanan

 Jonathan Bunting, Chief Executive Officer

 Paul Baker, Chief Financial Officer
 www.smithsnews.co.uk (http://www.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 approximately 55 per cent. market
share. It distributes newspapers and magazines on behalf of the major national
and regional publishers, delivering to approximately 23,000 retail outlets
across England and Wales. 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: Smiths News Recycle, which collects plastic and
cardboard waste from Smiths News' customers for recycling; Dawson Media Direct
(DMD) which supplies airlines and travel points with news and media; 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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