Connect Group revenue and profit ahead for full-year

Specialist distributor Connect Group announced its preliminary results for the year to 31 August on Tuesday, with total revenue of £1.9bn, up 1.7%.

The London-listed firm said revenue in Smiths News was down 2.4%, which was slightly better than expected.

Adjusted profit before tax was £60.7m, up 7.4%, benefitting from a full year of Tuffnells, and underpinned by solid performances from both the News & Media and Education & Care divisions.

It also reported “another year” of strong cash generation, with free cash flow of £49.6m, up 24.6%.

Connect group declared a final dividend of 6.5p, up 3.2%, making a full year dividend of 9.5p, up 3.3%.

“This has been a year of both strategic and operational progress for Connect Group,” said group chief executive Mark Cashmore.

“Tuffnells has delivered another strong performance, underpinning solid financial results for the Group.”

Cashmore said the board’s confidence in the opportunity for the company to succeed in the click-and-collect market had been reinforced by the growing scale and capability of Pass My Parcel.

“In 2017, a particular focus will be on accelerating the collaboration between Smiths News and Tuffnells, whilst investing in our organic initiatives to support long-term sustainable profit growth.”