10 Jan 2012 07:00
Smiths News PLC
Interim Management Statement
Smiths News PLC ("the Group"), the largest UK newspaper and magazine wholesaler and a leading UK book wholesaler, is today issuing its Interim Management Statement covering the 18 week period ("the period") to 7 January 2012.
The Group remains on track to deliver strong growth in pre-tax profits for the year to 31 August 2012, in line with market consensus.
Total Group revenues increased 1.9% year on year, boosted by contributions from the newly acquired Dawson Books, Dawson Media Direct and Dawson Marketing Services divisions.
Trading performance of the Dawson businesses are in line with expectations and integration is progressing well. Full year synergy benefits of £2.5m are on track.
Smiths News' revenues declined 3.2% on a like for like basis, an improvement on recent run rates and compares with a decline of 3.5% for the second half 2010/11. Newspaper performance has been stronger in the period as a result of cover price increases, with magazine performance broadly in line.
Bertrams' revenues declined 0.6% on a like for like basis, also an improvement on the most recent run rate decline of 1.4% for the second half 2010/11. A good start to the trading period was softened by more difficult Christmas trading.
There has been no change in the underlying financial condition of the Group since the year ended 31 August 2011 and the Group continues to operate well within its bank facilities.
The Group will announce its interim results for the six months ending 29 February 2012 on 24 April 2012.
Enquiries:
Smiths News PLC Mark Cashmore, Group Chief Executive Nick Gresham, Chief Financial Officer | 01793 563641
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Buchanan Communications Jeremy Garcia / Mark Edwards | 020 7466 5000
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About Smiths News PLC:
Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines, and Bertrams, a leading UK book wholesaler.
Smiths News distributes newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. The business serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents. Smiths News has an approximate 55% share of the newspaper and magazine wholesaling market in the UK. In addition to its distribution activities, Smiths News collects and processes returns, supplies sales information to publishers and provides a range of services for its retail customers.
Bertrams, which was acquired on 20 March 2009, supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams has an approximate 45% share of the wholesale book market.
In August 2011 the company acquired Dawson Holdings plc and is currently integrating its businesses into the Smiths News Group. The principal asset, Dawson Books is a leading supplier of academic books in the UK and internationally.