REG - Smiths News PLC - Post Close Trading Statement

Smiths NewsAnnouncement

02/10/2024 07:00

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RNS Number : 5176G  Smiths News PLC  02 October 2024

This announcement contains inside information

 

2 October 2024

 

 

Smiths News PLC

("Smiths News", "the Company" or "the Group")

 

Post Close Trading Statement

 

Smiths News (LSE: SNWS), the leading distributor of newspapers, magazines and
ancillary services to retailers across the UK, is pleased to report a
resilient trading performance during the second half of the 53-week period
ended 31 August 2024 ("FY2024" or the "Period"). Adjusted Operating Profit for
FY2024 is expected to be at least in line with market expectations* of
£38.2m, reflecting a solid performance.

 

Moderate revenue growth of 1.1% was supported by additional sales volumes
attributed to the men's UEFA European Championships, cover price inflation,
ongoing traction from organic growth initiatives, and the additional week of
trading in FY2024.

 

Management has continued to focus on operational efficiencies, delivering cost
savings of £5.6m in line with budgets, and growth initiatives are delivering
an increasing contribution to profit, in line with expectations.

 

As announced in May 2024, the Group's Refinancing Agreement removed the
previous dividend and distribution cap of £10 million per year, and the Group
will therefore be implementing its revised capital allocation policy in
respect of the dividend, maintaining 2x cover. The final dividend is expected
to be paid in February 2025, further details will be provided in the full year
results announcement.

 

The Company will report further on its performance and strategic progress in
our full year results, which will be published on Tuesday 5 November 2024.

 

*Company compiled analyst consensus can be found on Smiths News'
website: Analyst consensus
(https://www.smithsnews.co.uk/investor-zone/investors/consensus-and-key-metrics/)

 

Jonathan Bunting, Chief Executive Officer, commented:

 

"I am pleased with the Group's performance across the second half of the year
as we continued to deliver on our core strategy, providing our customers and
industry partners with an excellent level of service.

 

"With the business making progress in line with our plans and our growth
initiatives continuing to have positive momentum, I look forward to providing
a more detailed update at the Company's full year results in November."

 

 

For further information, please contact:

 

 Smiths News PLC                                                        via Vigo Consulting

 Jonathan Bunting, Chief Executive Officer

 Paul Baker, Chief Financial Officer

 www.smithsnews.co.uk (http://www.smithsnews.co.uk)

                                                                        Tel: +44 (0) 20 7390 0230

 Vigo Consulting

 Jeremy Garcia / Fiona Hetherington / Verity Snow

 smithsnews@vigoconsulting.com (mailto:smithsnews@vigoconsulting.com)

 

About Smiths News

 

For over 200 years, Smiths News has been delivering newspapers to retailers
across the UK. It distributes newspapers and magazines on behalf of the major
national and regional publishers, delivering to approximately 22,500 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.

 

For more information, please visit: www.smithsnews.co.uk
(http://www.smithsnews.co.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 (mailto:cosec@smithsnews.co.uk)

 

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