Connect Group's H1 profit, revenue slip as dividend rises

Connect Group's shares fell more than 3% as a rise in interim dividend failed to impress investors disgruntled by slips in first-half revenue and pre-tax profit.

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"In line with our plans to focus the Group's investment on the two larger divisions, the proposed sale of Education & Care is an important milestone in our strategy," said CEO Mark Cashmore.

"The resilience of News & Media and revenue growth in Tuffnells has underpinned our overall performance, allowing for continued investments to drive growth opportunities."

Connect Group reported statutory pre-tax profit for the peirod of £18.1m, down 5.3% on the year. Statutory revenue was £940.5m, down 0.8%. Interim dividend was up 3.3% to 3.1p a share.

Looking ahead, the company was focusing its resources and investment on the News & Media and Parcel Freight divisions, developing the capabilities of these businesses to secure further efficiencies and generate organic growth opportunities.

"The proceeds from the disposal of Education & Care will materially reduce the Group's debt, providing greater flexibility in the pursuit of these goals," the company said.

Connect Group said it remained committed to providing strong returns for shareholders.

At 12:52 BST, shares in Connect were down 3.32% to 131.25p each.