Post Close Trading Statement
FY2024 adjusted operating profit expected at least in line with £38.2m market expectations; revenue grew 1.1%.
vs expectations: in line
- Adjusted Operating Profit FY2024 at least £38.2m
- Revenue growth 1.1%
- Cost savings delivered £5.6m
Select text to share a quote on X · sign in to keep highlights & notes in your SNWS notes
Smiths News (LSE: SNWS), the leading 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 ("FY2024" or the "Period"). Adjusted Operating Profit for FY2024 is expected to be at least in line with market expectations* of £38.2m, 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 FY2024.
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 therefore be implementing its revised capital allocation policy in respect of the dividend, maintaining 2x cover. The final dividend is expected to be paid in February 2025, further details will be provided in the full year results announcement.
The Company will report further on its performance and strategic progress in our full year results, which will be published on Tuesday 5 November 2024.
*Company compiled analyst consensus can be found on Smiths News' website: Analyst consensus
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."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.