Smiths News to meet full-year market expectations

Smiths News said on Wednesday that it continues to expect full-year results to be in line with market expectations following a "robust" operational and financial performance in the 26 weeks to 27 February.

The company said the "flexibility and resilience" of the business model in its core newspaper and magazine wholesaling operations helped to ensure it traded to plan throughout the period.

Smiths maintained a full service over both the second lockdown in England and the current UK wide restrictions. Its markets are not experiencing the large reductions and fluctuations that occurred during the first months of the pandemic, it said.

The company expects adjusted earnings before interest, tax, depreciation and amortisation of £20.5m for the first half of 2021, and for its bank net debt to be £71m at 27 February. This would would result in a bank net debt to adjusted EBITDA ratio of 1.9x.

"Given the stable performance of the business in H1 2021, the board continues to expect that full year financial performance will be in line with market expectations," it said.

Chief executive Jonathan Bunting: "Working together to mitigate the impacts of the pandemic and associated lockdowns, we have delivered a strong performance that is founded on supporting the long term sustainability of our markets and supply chain."

At 1215 GMT, the shares were up 3.2% at 29.11p.