31 January 2024
Smiths News plc
("Smiths News" or
the "Group" or the "Company")
Trading Update
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
For further
information, please contact:
|
Smiths News
plc
Jonathan Bunting, Chief Executive
Officer
Paul Baker, Chief Financial Officer
www.smithsnews.co.uk
|
via Vigo
Consulting
|
|
Vigo
Consulting
Jeremy Garcia / Fiona Hetherington / Verity
Snow
smithsnews@vigoconsulting.com
|
Tel: +44 (0) 20 7390
0230
|
About Smiths
News
For over 200 years, Smiths News has been
delivering newspapers to retailers across the UK. It distributes
newspapers and magazines on behalf of the major national and
regional publishers, delivering to approximately 24,000 customers
across England and Wales on a daily basis. The speed of turnaround
and the density of Smiths News' coverage is critical to one of the
world's fastest physical supply chains.
For more information, please visit: www.smithsnews.co.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