REG - Smiths News PLC - Post-Close Trading Update

Smiths NewsAnnouncement

22/09/2022 07:01

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RNS Number : 2196A  Smiths News PLC  22 September 2022

This announcement contains inside information

 

22 September 2022

 

Smiths News plc

("the Company")

 

Post Close Trading Update

 

Smiths News is pleased to report a good trading performance in the second half
of FY2022 (H2), supported by a positive sales mix and focused operational
control.  The Board expects Adjusted EBITDA (ex. IFRS-16 leases) for the 52
week period ended 27 August 2022 to be not less than £40m, ahead of market
expectations.

 

In line with prior forecasts and guidance, sales of newspapers and magazines
returned to historic trends in H2, with higher margin one-shots and ancillary
revenue streams continuing to benefit the overall margin performance for the
full year.

 

Fuel prices and other inflationary pressures continue to be in line with
expectations and prior guidance, with close management of process and
mitigating actions containing the net impact. Cash generation has been strong
in the period resulting in continued de-leveraging to less than 0.5x bank net
debt : Adjusted EBITDA (ex. IFRS-16 leases).

 

As outlined in our announcements on the administration of McColl's Retail
Group in May 2022, the administrators have confirmed that unsecured creditors
can expect to receive estimated distribution prospects of between 20% and 40%.
The Company has provisioned, as an exceptional, for the bad debt risk at
£4.4m, at the lower end of the guided range of distribution prospects, which
will impact statutory profit after tax for the full year.

 

Given the good performance of the business, the Board continues to expect to
be in a position to recommend a final dividend for FY2022 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 2023.

 

Jonathan Bunting, Chief Executive Officer, commented:

 

"In what has been an uncertain period for the wider economy, our signature
attention to delivering our plans has paid dividends. We remain focused on
providing excellent service to our retailers and publishers and expect to
continue to deliver consistent financial performance and shareholder returns.
I look forward to giving further details of our performance at the Company's
preliminary results in November."

 

 

Ends

 

 

Enquiries:

Smiths News PLC
                                              Via
Buchanan

Jonathan Bunting, Chief Executive Officer

Paul Baker, Chief Financial Officer

www.smithsnews.co.uk

 

Buchanan

Richard Oldworth / Jamie Hooper / Toto
Berger
020 7466 5000

smithsnews@buchanan.uk.com

www.buchanan.uk.com

 

 

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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