Smiths News reports “solid performance” for H2
Smiths News, the distributor of newspapers, magazines and ancillary services to retailers across the UK, is pleased to report a resilient trading performance during the second half of the 53-week period ended 31 August 2024 . Adjusted Operating Profit for FY 2024 is expected to be at least in line with market expectations of £38.2 million, reflecting a solid performance.
Moderate revenue growth of 1.1% was supported by additional sales volumes attributed to the men’s UEFA European Championships, cover price inflation, ongoing traction from organic growth initiatives, and the additional week of trading in FY 2024.
Management has continued to focus on operational efficiencies, delivering cost savings of £5.6m in line with budgets, and growth initiatives are delivering an increasing contribution to profit, in line with expectations.
As announced in May 2024, the Group’s Refinancing Agreement removed the previous dividend and distribution cap of £10 million per year, and the Group will be implementing the revised capital allocation policy in respect of the dividend, maintaining 2x cover. The final dividend is expected to be paid in February 2025 and further detail will be provided in the full year results announcement.
The Company will report further on its performance and strategic progress in its full year results, which will be published on Tuesday 5 November 2024.
Jonathan Bunting, Chief Executive Officer, commented: “I am pleased with the Group’s performance across the second half of the year as we continued to deliver on our core strategy, providing our customers and industry partners with an excellent level of service.
“With the business making progress in line with our plans and our growth initiatives continuing to have positive momentum, I look forward to providing a more detailed update at the Company’s full year results in November.”
