Sign In
17 Jul 2008 07:00
Smiths News PLC
Interim Management Statement
Smiths News PLC ("the Group") is today publishing its Interim Management Statement relating to the 19-week period ("the period") from 1 March 2008 to 12 July 2008.
Total revenues in the period increased by 1.1% year on year. In the year to date, revenues are up 0.8%. Newspaper revenues increased during the period, continuing the trend of price increases offsetting the impact of volume declines. There was a small decline in Magazine revenues over the period, with Partworks proving particularly difficult.
The Group has recently been successful in winning circa £85m of additional newspaper and magazine business from News International. The new contract will take effect from July 2009.
In the period, the Group acquired a 50% stake in Rascal Solutions Limited, a company that provides store level services to a number of major retailers in the newspaper and magazine category. The total consideration was £3m of which £1m is deferred until 30 October 2008.
The Group also entered into sale and leaseback transactions over five freehold properties for a combined consideration of £2.3m. This will provide a profit on sale of around £1.4m.
The restructuring of the Group's network is progressing well. As part of our plan for the East Midlands a major new depot was opened in Nottingham on 19 May. The new building will enable the Nottingham depot to accommodate some recently acquired newspaper and magazine business in the Derby area.
In spite of increasingly difficult economic conditions, trading remains in line with the Board's expectations, and we continue to explore the wider opportunities for growth that exist adjacent to our core business.
There has been no significant change in the financial position of the Company since 29 February 2008.
Smiths News PLC will announce its preliminary results for the year ending 31 August 2008 on 16 October 2008.
Enquiries:
Smiths News PLC
Alan Humphrey, Investor Relations 01793 563641
Brunswick Group LLP
Kate Holgate, Media Relations 020 7404 5959
Follow the stocks
