Post Close Trading Statement
Updated : 07:01
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
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 Jonathan Bunting, Chief Executive Officer Paul Baker, Chief Financial Officer
| via Vigo Consulting |
Vigo Consulting Jeremy Garcia / Fiona Hetherington / Verity Snow
| Tel: +44 (0) 20 7390 0230 |
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
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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