CNCT.L Regulatory News (CNCT)

7 Feb 2007 07:01

Smiths News PLC07 February 2007 7 February 2007 SMITHS NEWS PLC TRADING UPDATE Ahead of its AGM this morning, Smiths News PLC is providing an update on itstrading performance for the five months to 31 January 2007. Trading in the current year is in line with the Board's expectations. Total sales for the first 5 months are 6% above last year, driven mainly bycontract gains with the magazine distributor Frontline secured in April 2006,and by Regional Press gains from Northcliffe and Johnson Press secured inSeptember 2006. Underlying sales, excluding new business gains, are in line with last year. The trend of newspaper cover price increases more than offsetting volumedeclines has continued. There was significant price activity from a number ofnewspaper publishers in the early months of our financial year. As expected, the magazine market has been more demanding, with declining volumesin monthly magazines and reduced Partwork launches more than offsetting growthin weekly magazines. Management continue to drive service and efficiency at pace, with costsavings being delivered ahead of plan. Looking forward, the Board expects the current trading conditions to continuefor the remainder of the year and is managing the business on that basis. TheCompany is positioned to deliver a performance in line with expectations. Smiths News PLC will announce its interim results for the 6 months ending 28February 2007 on 26 April 2007. ContactsFor more information please call: Kate Holgate or Tom Williams, Brunswick Group LLP 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange