Connect Group sales slow but forecasts remain despite Brexit

The newspaper, books and freight distribution group said it was too early to make a medium-term forecast after the UK's vote to leave the European Union, but it stressed that the group as a whole is predominantly focused on " large and resilient markets" in the UK.

"Despite market volatility and uncertainty, forecasts remain in line with market expectations," the company said in a statement.

Revenues grew 2.1% in the period, down from the 4.2% growth in the first six months of the year.

Like-for-like sales also declined 0.9%, the distributor confirmed, which makes account for the current year to date including ten more weeks from the acquisition of business of mixed parcel freight specialist Tuffnells.

By division, the news and media arm saw revenues slow 2.3%, a deceleration from the 2.1% rate seen in the first half, while like-for-like revenues decreased 3.8%.

Both newspaper and magazine performance was said to be "continuing broadly in line" with recent run rates, with the media section's revenue growth accelerating to 5% from the 4% in the first half.

Revenues in the bookselling division increased by 1.1%, up from 0.1% in the first half, though like-for-like revenues increased by 4.8% as continuing tough conditions in libraries were partially offset by the continuing growth via the Wordery.com consumer site and a good performance in wholesale.

Education & Care saw total and like for like revenues decreased by 3.3%, a deterioration from the first half of the year where total sales were just above flat. Core revenues decreased by 2.4% with a good performance in Early Years being more than offset by tough conditions in secondary education.

The Tuffnells parcel freight division increased revenues by 10.2% on a comparable 44 week basis, driven by a continuation of strong market growth and new customer wins.