REG - Smiths News PLC - Trading Statement

Smiths NewsAnnouncement

31/01/2024 07:00

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RNS Number : 3939B  Smiths News PLC  31 January 2024

31 January 2024

Smiths News plc

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

 

Trading Update

 

Smiths News (LSE: SNWS), the leading distributor of newspapers, magazines and
ancillary services to retailers across the UK, today provides shareholders
with an update on trading ahead of its Annual General Meeting taking place
this morning.

 

The Board is pleased to confirm trading for the year ended 31 August 2024
("FY24") remains in line with market expectations*.

 

As previously announced, the Company has secured contract renewals across 74%
of our current publisher revenue streams to at least 2029, underpinning
revenues in the medium-term, alongside continuing to secure additional
national and regional contract awards.  In October 2023, the Group announced
it had secured contracts for the distribution of the Midlands News Association
regional press titles, and for newspaper distribution of News UK titles in the
Group's existing London territories. All new contracts have commenced and are
fully integrated into the Group's established UK footprint.

 

The six months to 25 February 2023 ("H1 23") benefitted from a number of
one-off events that had a positive impact on sales, including the 2022 FIFA
World Cup and the State Funeral of Her Majesty the Queen. We remain confident
that revenues for FY24 will be in line with market expectations, but we do not
envisage repeat events of this quantum falling in the six months to 24
February 2024 ("H1 24").

 

In line with the Group's strategy, management continues to explore and
progress growth initiatives that are complementary to existing operations and
leverage Smiths News' existing capabilities and expertise.

 

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

 

"I am pleased to confirm that 2024 has started positively, and the Group
remains on track to deliver financial results in line with market expectations
for the year. Whilst we are cognisant of the ongoing financial pressure on
consumers and the broader macro-economic outlook, our focus remains on
securing and maximising revenue opportunities in our core newspaper and
magazine distribution business, whilst exploring growth initiatives in
adjacent areas that leverage on our existing capabilities and market
presence."

 

 

*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/)

 

 

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)

 Vigo Consulting                                                        Tel: +44 (0) 20 7390 0230

 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 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.

 

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

 

 

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