LONDON (Alliance News) - Connect Group PLC on Tuesday reported a dip in year to-date revenue despite describing its overall performance "in line with management's views".
For the 19 weeks to January 12, total group revenue decreased to GBP516.7 million from GBP538.1 million a year ago.
Revenue in Smiths News, the firm's newspaper and magazines wholesale business, was down 3.4% to GBP458.5 million from GBP474.2 million, while Tuffnells revenue dropped to GBP58.2 million from GBP63.9 million, Tuffnells is the company's freight distribution unit.
Connect Group is looking to sell and leaseback 16 freehold and long-lease Tuffnells properties generating GBP35 million of net proceeds. It has invited bids from interested third parties.
"This performance is in line with our expectations, with the decline in Smiths News and DMD being a consequence of well-established trends in the newspaper and magazine markets," Connect Group said.
Lastly, the company said it will suspend its interim dividend for the 2019 financial year. A year ago it paid an interim dividend of 3.1 pence per share.
However, the company expects to propose a dividend of not less than 1.0 pence per share for financial 2019, "subject to meeting our cash and profit expectations and the continuation of a positive trading outlook". For financial 2018, Connect Group paid 3.1p in dividend.
The company will announce its interim financial results on May 1.
Connect Group shares were trading down 3.4% at 42.13p each.
