Last checked at 22 Sep 2022 07:00
This announcement contains inside information
22 September 2022
Smiths News plc
("the Company")
Post Close Trading Update
Smiths News is pleased to report a good trading performance in the second half of FY2022 (H2), supported by a positive sales mix and focused operational control. The Board expects Adjusted EBITDA (ex. IFRS-16 leases) for the 52 week period ended 27 August 2022 to be not less than £40m, ahead of market expectations.
In line with prior forecasts and guidance, sales of newspapers and magazines returned to historic trends in H2, with higher margin one-shots and ancillary revenue streams continuing to benefit the overall margin performance for the full year.
Fuel prices and other inflationary pressures continue to be in line with expectations and prior guidance, with close management of process and mitigating actions containing the net impact. Cash generation has been strong in the period resulting in continued de-leveraging to less than 0.5x bank net debt : Adjusted EBITDA (ex. IFRS-16 leases).
As outlined in our announcements on the administration of McColl's Retail Group in May 2022, the administrators have confirmed that unsecured creditors can expect to receive estimated distribution prospects of between 20% and 40%. The Company has provisioned, as an exceptional, for the bad debt risk at £4.4m, at the lower end of the guided range of distribution prospects, which will impact statutory profit after tax for the full year.
Given the good performance of the business, the Board continues to expect to be in a position to recommend a final dividend for FY2022 of no less than 2.7p per ordinary share held, taking the total dividends for the year up to the full distribution permissible under the Company's current banking facilities (£10m per financial year), for payment in February 2023.
Jonathan Bunting, Chief Executive Officer, commented:
"In what has been an uncertain period for the wider economy, our signature attention to delivering our plans has paid dividends. We remain focused on providing excellent service to our retailers and publishers and expect to continue to deliver consistent financial performance and shareholder returns. I look forward to giving further details of our performance at the Company's preliminary results in November."
Ends
Enquiries:
Smiths News PLC Via Buchanan
Jonathan Bunting, Chief Executive Officer
Paul Baker, Chief Financial Officer
www.smithsnews.co.uk
Buchanan
Richard Oldworth / Jamie Hooper / Toto Berger 020 7466 5000
smithsnews@buchanan.uk.com
www.buchanan.uk.com
Person responsible for arranging release of this announcement:
Stuart Marriner
General Counsel & Company Secretary
Smiths News plc
Rowan House
Cherry Orchard North
Kembrey Park
Swindon
SN2 8UH
email: cosec@smithsnews.co.uk