This announcement contains inside information

4 October 2023

 

Smiths News plc

("the Company")

 

Post Close Trading Update

 

Smiths News is pleased to report a good trading performance in the second half of FY2023 ("H2"), with Adjusted Operating Profit for the 52-week period ended 26 August 2023 expected to be at least in line with market expectations of £38.3m, reflecting year-on-year growth.

 

The Company's overall revenue has increased by 0.2%, driven by strong cover price rises and additional sales from the World Cup and one-off news events. Meanwhile, the securing of sustainable operational efficiencies and an improved contribution from adjacent categories has mitigated the impact of inflation in line with management's planning assumptions.

 

In the light of this good trading performance, the Board expects to recommend a final dividend for FY2023 of no less than 2.7p per ordinary share held, taking the total dividends for the year up to the full distribution permissible under the Company's current banking facilities (£10m per financial year), for payment in February 2024.

 

The Company will report further on its performance and strategic progress in our preliminary results, which are expected to be published on 8 November 2023. 

 

Jonathan Bunting, Chief Executive Officer, commented:

 

"In what has been a challenging period for the wider economy, our strategy of securing operational efficiencies, while enhancing core operations and developing adjacent revenues, has been central to mitigating the impacts of inflation. We remain focused on providing an excellent service to our industry partners and expect to continue delivering a consistent financial performance."

 

Ends

 

 

Enquiries:

 

 

About Smiths News PLC

 

Smiths News PLC and its core business, Smiths News, is the UK's largest newspaper and magazine wholesaler, with approximately 55 per cent. market share. It distributes newspapers and magazines on behalf of the major national and regional publishers, delivering to approximately 23,000 retail outlets across England and Wales. The speed of turnaround and the density of Smiths News' coverage is critical to one of the world's fastest physical supply chains.

 

Ancillary businesses include: Smiths News Recycle, which collects plastic and cardboard waste from Smiths News' customers for recycling; Dawson Media Direct (DMD) which supplies airlines and travel points with news and media; and Instore, which offers field marketing services to retailers and suppliers across the 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