Trading Statement
FY24 trading remains in line with market expectations; 74% of publisher revenue secured to 2029.
vs expectations: in line
- Publisher revenue contracts secured to at least 2029 74% of current revenue streams
- H1 23 one-off benefit events 2022 FIFA World Cup, State Funeral of Her Majesty the Queen
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Smiths News (LSE: SNWS), the leading distributor of newspapers, magazines and ancillary services to retailers across the UK, today provides shareholders with an update on trading ahead of its Annual General Meeting taking place this morning.
The Board is pleased to confirm trading for the year ended 31 August 2024 ("FY24") remains in line with market expectations*.
As previously announced, the Company has secured contract renewals across 74% of our current publisher revenue streams to at least 2029, underpinning revenues in the medium-term, alongside continuing to secure additional national and regional contract awards. In October 2023, the Group announced it had secured contracts for the distribution of the Midlands News Association regional press titles, and for newspaper distribution of News UK titles in the Group's existing London territories. All new contracts have commenced and are fully integrated into the Group's established UK footprint.
The six months to 25 February 2023 ("H1 23") benefitted from a number of one-off events that had a positive impact on sales, including the 2022 FIFA World Cup and the State Funeral of Her Majesty the Queen. We remain confident that revenues for FY24 will be in line with market expectations, but we do not envisage repeat events of this quantum falling in the six months to 24 February 2024 ("H1 24").
In line with the Group's strategy, management continues to explore and progress growth initiatives that are complementary to existing operations and leverage Smiths News' existing capabilities and expertise.
Jonathan Bunting, Chief Executive Officer of Smiths News, commented:
"I am pleased to confirm that 2024 has started positively, and the Group remains on track to deliver financial results in line with market expectations for the year. Whilst we are cognisant of the ongoing financial pressure on consumers and the broader macro-economic outlook, our focus remains on securing and maximising revenue opportunities in our core newspaper and magazine distribution business, whilst exploring growth initiatives in adjacent areas that leverage on our existing capabilities and market presence."
*Company compiled analyst consensus can be found on Smiths News' website: Analyst consensus
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