REG - Smiths News PLC - Update on McColl's Retail Group's Administration

Smiths NewsAnnouncement

30/05/2022 07:15

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RNS Number : 1605N  Smiths News PLC  30 May 2022

This document contains inside information

 

Smiths News plc

("the Company")

 

Update on McColl's Retail Group's Administration

 

The Company is issuing this announcement as an update following the
administration of McColl's Retail Group ("McColl's") (see the Company's RNS
No. 6621K issued on 6 May 2022) and the subsequent confirmation from the
administrators that unsecured creditors of Martin McColl Limited can expect to
receive estimated distribution prospects of between 20% and 40%.

 

Immediately following McColl's administration, the Company took steps to
mitigate McColl's bad debt risk and has reduced the debt to £5.6m, a claim of
which is being filed with the administrator. In light of the administrator's
latest guidance, the Company expects the overall bad debt risk to further
reduce and to be in the region of £3.4m to £4.5m, which will impact
statutory profit after tax for the full year. The Company continues to supply
McColl's under its new ownership on improved payment terms, which provides
partial mitigation to the impact on cash flow.

 

The Board confirms its intention to maintain payment of the planned interim
dividend of 1.4p per share, as announced as part of the Company's interim
financial results on 4 May 2022. Beyond the impact of the McColl's
administration, underlying trading continues to be in line with expectations
and, given the Company's on-going cash generation and strong net debt
reduction, the Board continues to expect to be in a position to recommend a
final dividend for FY2022 up to the full distribution permissible under the
Company's current banking facilities (£10m per financial year), for payment
in February 2023.

 

 

Enquiries:

 

 Smiths News PLC

 Jonathan Bunting, Chief Executive Officer                         Via Buchanan

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

 Buchanan

 Richard Oldworth / Jamie Hooper / Toto Berger                     020 7466 5000

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

LEI: 2138004O33ONVOOQXB02

 

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