Last checked at 9 Feb 2018 07:00
9 February 2018
Trinity Mirror plc
Trading Update for the 52 weeks ended 31 December 2017
Trinity Mirror is today issuing a trading update in respect of the unaudited results for the 52 weeks ended 31 December 2017 ahead of announcing the audited results for 2017 on 5 March 2018.
The figures quoted in this announcement are unaudited and are subject to final approval by the Board and completion of the audit.
2017 results
The Board anticipates adjusted* results for 2017 to be marginally ahead of consensus** forecasts.
Group revenue*** for 2017 on a like for like basis is expected to fall by 9% year on year, broadly in line with the 9% decline in the first half.
| H1 | Q3 | Q4 | H2 | FY |
Publishing | (10)% | (8)% | (8)% | (8)% | (9)% |
(12)% | (10)% | (11)% | (11)% | (11)% | |
Digital | 6% | 4% | 12% | 8% | 7% |
Total Group Revenue | (9)% | (8)% | (9)% | (8)% | (9)% |
Publishing revenue is expected to fall by 9% with an improvement in the rate of decline in the second half to 8% compared to a decline of 10% in the first half. Publishing digital revenue growth of 7% reflects improved growth of 8% in the second half compared to 6% growth in the first half. The improvement in the rate of growth in Publishing digital is driven by a strong fourth quarter growth of 12% with display and transactional growth of 22%.
Net debt
Strong cash generation continued throughout the year which enabled net debt to fall to circa £10 million at the end of 2017.
Pensions
The IAS 19 pension deficit at 31 December 2017 is expected to be £378 million, a reduction of £88 million from the 2016 year end. The fall in the deficit has been driven by strong asset returns and a change in mortality assumptions which has been partially offset by a further reduction in discount rates.
Dividends
The Board expects to propose a final dividend of 3.55 pence per share for 2017, which together with the interim dividend of 2.25 pence per share represents a full year dividend of 5.80 pence per share, a year on year increase of 6.4%.
Historical legal issues
The costs associated with the settlement of civil claims in relation to phone hacking have been higher than expected, in particular the legal fees of the claimants' lawyers and the general court process. Therefore, we have increased the provision for settling these historical claims by a further £3.0 million. This is in addition to the £7.5 million increase in the provision at the half year resulting in a total charge of £10.5 million for the full year.
Although there remains uncertainty as to how these matters will progress, the Board remains confident that the exposures arising from these historical events are manageable and do not undermine the delivery of the Group's strategy.
Outlook for 2018
At this early stage in the year, performance for 2018 is expected to be in line with market expectations.
Enquiries
Trinity Mirror |
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Simon Fox, Chief Executive Vijay Vaghela, Group Finance Director and Company Secretary | 020 7293 3553 | |
Brunswick |
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Nick Cosgrove, Partner | 020 7404 5959 | |
Will Medvei, Director |
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The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.
* On an adjusted basis excluding non-recurring items, restructuring charges in respect of cost reduction measures, the amortisation of intangible assets, the pension administrative expenses, the retranslation of foreign currency borrowings, the impact of fair value changes on derivative financial instruments, the pension finance charge and the impact of tax legislation changes.
** Market expectation for adjusted operating profit and adjusted earnings per share are £121 million and 34.6 pence per share respectively. This profit estimate for 2017 has been compiled on the basis of accounting consistent with accounting policies of Trinity Mirror. The Directors have assumed for this purpose that the audit of Trinity Mirror's financial information for the 52 weeks ended 31 December 2017 will not require any material adjustments or reveal any unforeseen matters that would have a material impact on adjusted operating profit and adjusted earnings per share. The assumptions used in making this profit estimate are within the control of the Directors.
*** The like for like trends for 2017 exclude from 2017 the portfolio changes made in the year and excludes from the 2016 comparative: the extra week of trading in 2016, the Independent print and distribution contract which ceased in April 2016, Rippleffect which was sold in August 2016, the four Metros handed back to DMGT in December 2016 and other portfolio changes in 2016 and 2017.