LONDON (Alliance News) - Distribution company Connect Group PLC posted a sharp rise in annual pretax profit on Tuesday, boosted by the acquisition of Tuffnells Parcels Express, and said trading had been solid for the period.
Connect said its pretax profit for the year to August 31 was GBP41.9 million, a 45% year-on-year rise on the GBP29.0 million made a year before. Stripping out all exceptional items, including restructuring costs for the group, Connect's adjusted pretax profit for the year rose 7.4% to GBP60.7 million from GBP56.5 million.
Group revenue rose 1.7% to GBP1.91 billion from GBP1.88 billion. Revenue for the company's News & Media division, which delivers newspapers and magazines, was down 2.4%, slightly better than anticipated within a structurally declining market.
Revenue for the Parcel Freight arm grew, driven by the contribution from the Tufnells business, but revenue in its Education & Care and Books businesses declined amid tough market backdrops for both businesses.
The company declared a final dividend of 6.50 pence per share, up 3.2%, meaning its total payout rises 3.3% year-on-year to 9.50p.
"This has been a year of both strategic and operational progress for Connect Group. Tuffnells has delivered another strong performance, underpinning solid financial results for the Group. In addition, our confidence in the opportunity for us to succeed in the Click & Collect market has been reinforced by the growing scale and capability of Pass My Parcel," said Connect Chief Executive Mark Cashmore.
"In 2017, a particular focus will be on accelerating the collaboration between Smiths News and Tuffnells, whilst investing in our organic initiatives to support long-term sustainable profit growth," he added.
Shares in Connect were up 3.6% to 146.00p early Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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