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Connect Group operates a diverse portfolio of businesses leading distribution specialists in carefully chosen markets. With a combined revenue of £1.8bn, we employ 4,500 staff and operate in the UK and worldwide.

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Connect Group Fundamentals

This has been looking very soggy of late. No reason that I can fathom. Nothing adverse has been announced. Another 'buying opportunity' by any chance? Certainly in the bargain basement category at these levels.

It is frustrating - I've also taken out a S/B on Tuesday @139.54.

Hopefully the Interims on 7th July will give some upside.

Trading Update

Total Group revenues for the 44 week period increased 3.1% on the same period last year, with overall performance marginally ahead of management expectations.

The performance of each division has been as follows:

· Connect News & Media:
o News revenues decreased by 3.4% compared with the same period last year with the benefit of new regional business offset by the absence of last year's World Cup sticker sales.
o Like for like revenues decreased by 3.5% for the 44 week period, comfortably within our medium term forecasts with newspaper cover price inflation strengthening and magazine performance continuing to improve.
o Pass my Parcel recruitment continues as planned with over 2,400 parcel shops recruited to date, up from c.700 at the time of interim results in April and keeping us on track to achieve our ambition of c.3,000 by the financial year end. We are continuing dialogue with potential new clients and the launch of further services.
o Media revenues increased by 1.9% as a result of new contract wins with like for like revenues decreasing 2.3%.

· Connect Books:
o Revenues decreased by 1.1% as we continue to focus on profitable sales. Like for like revenues increased by 2.3% for the 44 week period, showing improving momentum since the interim results.
o Performance has been driven by the ongoing recovery in Trade sales as management actions from the stabilisation plan take effect, alongside Wordery's continued impressive growth.

· Connect Education & Care:
o Revenues increased by 1.9% with like for like revenues increasing by 1.8% for the 44 week period, showing a stronger run rate since the interim results.
o Core revenues were up by 2.9% and growth continues to be driven by strength in Primary Education and Early Years.
o Momentum is building for the key peak trading period which has started in line with expectations supported by recent and ongoing investments in our new Warehouse Management System.

· Connect Parcel Freight:
o The division has continued its strong start within the Group and is ahead of management expectations, with total revenues increasing by 20.6% driven by market growth and new customers.
o Planned operational synergies identified at the time of the acquisition remain on track.
o As announced on 28 May 2015, Chris Ward was appointed Managing Director of the division, with effect from 29 June 2015.

There has been no change in the underlying financial condition of the Group since the interim results announcement on 22 April 2015.

The Group will announce its preliminary results for the twelve months ending 31 August 2015 on 14 October 2015.

Interesting buys

09:52:14 145.00 276,000 O 141.50 145.75 Buy 593,347 24,946
09:52:07 145.00 276,429 O 141.25 145.75 Buy 317,347 24,946
09:46:22 145.75 455 AT 142.25 145.75 Buy 40,918 24,946
08:40:41 144.50 1,174 AT 142.25 144.50 Buy 40,463 24,946
08:40:41 144.50 600 AT 142.25 144.50 Buy 39,289 24,946
08:40:41 144.50 726 AT 142.25 144.50 Buy 38,689 24,946
08:34:52 144.50 1,994 AT 142.25 144.75 Buy 37,963 24,946
08:34:46 144.50 1,994 AT 142.25 144.75 Buy 35,969 24,946
08:34:22 144.50 1,994 AT 141.25 144.75 Buy 33,975 24,946
08:34:15 144.75 1,494 AT 141.25 145.25 Buy 31,981 24,946
08:34:15 144.75 1 AT 141.25 144.75 Buy 30,487 24,946
08:34:15 144.75 947 AT 141.25 144.75 Buy 30,486 24,946
08:27:02 145.10 5,000 O 143.25 145.75 Buy 29,539 24,946
08:26:57 145.00 1,362 O 143.25 145.75 Buy 24,539 24,946



Compared with "normal volumes".

An upgrade to buy from N+1 Singer - TP unchanged @150p.

Good volume today, but most of it accounted for by a 'put through' of 2x276,000 shares. Very disappointing price performance even considering the state of the wider market.

7 month high @166.50p - albeit on low volume.

Connect Group PLC, a leading specialist distributor operating in four divisions: News & Media, Books, Education & Care and Parcel Freight, will be announcing its Preliminary results for the year ended 31 August 2015 on Wednesday 14 October 2015.

A meeting for analysts will be held at 9.30am at the offices of Buchanan, 107 Cheapside, London EC2V 6DN on Wednesday 14 October 2015, with an audio webcast of the results presentation available thereafter.

This has gone nowhere all year. I'm hoping that the upcoming results will spark a bit of positive action. A return to 180 should be achievable if there are no nasties.

Preliminary Results year ended 31 August 2015

HIGHLIGHTS:

Strong performance with Adjusted profit ahead of expectations
· Revenue of £1,875.1m up 3.7% and Adjusted profit before tax up 13.0% to £56.5m, benefitting from the post-acquisition contribution from Tuffnells
· Adjusted earnings per share of 19.7p up 0.5%, reflecting post-acquisition profits from Tuffnells and impact of rights issue shares
· Free cash flow of £39.8m, up 7.0%; Net debt £153.4m; Net debt/Adjusted EBITDA (3) 1.9x, starting paydown from peak post acquisition debt level
· Final dividend of 6.3p up 5.0%, making a full year dividend of 9.2p, up 4.5%

Transformational year for the Group
· Scale acquisition of Tuffnells completed in December 2014
o Excellent early performance under Connect Group ownership
o Integration and synergies on track and creating new growth opportunities
· Launch of Click & Collect delivery service: Pass My Parcel
o Successfully accelerated rollout to over 3,000 stores
o Agreement in principle to launch new mobile enabled returns service with new client

Foundations in place for continuing growth
· Strategy on track with clear opportunities across the Group

Liberum Capital Buy 158.63 180.00 180.00 Reiterates

TRADING UPDATE & ASOS RETURN SERVICE LAUNCH

Connect Group PLC, a leading specialist distributor operating in four divisions; News & Media, Books, Education & Care and Parcel Freight, is today issuing its Trading Update covering the 19 week period to 9 January 2016. It is also pleased to announce ASOS, a leading online fashion retailer, as the second customer for Pass My Parcel, the Group's Click & Collect service.

Overall performance continues in line with management expectations with total Group revenues increasing 6.4% compared to the same period last year, including the benefit of a full period's strong contribution from the Parcel Freight division following the acquisition of Tuffnells in December 2014. Total Group like for like revenues decreased 2.3%.

The Group continues to make good progress with its growth initiatives. Pass My Parcel delivered an excellent operational performance over the peak Christmas period remaining on track with its current expansion plans. The launch of a mobile enabled returns collection service, with a QR (Quick Response) code sent to customers' mobile phones, is the next step in the Group's strategy to grow Pass My Parcel, having originally launched the Click & Collect service in October 2014 with Amazon as its first client. The Group today names ASOS as its second customer with an initial trial in 20 retail outlets to be rolled out across the remaining 3,000 outlets over the coming months.

The performance of each division was as follows:
· Connect News & Media: News total revenues decreased by 2.7% and like for like revenues decreased by 3.7%, with newspaper performance in line with recent run rates and magazine run rates continuing to improve. Media total revenues increased by 2.5% while like for like revenues increased by 1.8%.

· Connect Books: total revenues declined by 0.8%, while like for like revenues increased by 1.2%, through a sustained focus on more profitable contracts as part of the efforts to reduce costs and increase margins. Ongoing significant growth in Wordery and a good performance in Wholesale were offset by continuing tough conditions in UK Libraries and International markets.

· Connect Education & Care: total and like for like revenues both increased by 0.1%. Core revenues increased by 1.7% underpinned by strong growth in Early Years partly offset by performance in Secondary Education, with the division remaining focused on maintaining a strong gross margin.

· Connect Parcel Freight: total and like for like revenues both increased by 12.1% with continued positive market growth and new customer wins. The division's performance remains in line with management expectations, with strong growth under the Group's ownership.

There has been no change in the underlying financial condition of the Group since the preliminary financial results announcement on 14 October 2015.

The Group will announce its interim results for the six months ending 29 February 2016 on 19 April 2016.

Peel Hunt Buy 167.88 174.00 174.00 Reiterates

Liberum Capital Buy 167.88 190.00 190.00 Reiterates

Unaudited Interim Results for 6mths ended 29/2/16

Highlights:

· Group performance in line with management expectations

· Adjusted revenue up 4.2%
· Adjusted profit before tax up 13.0%, driven by post acquisition profits and growth in Parcel Freight
· Adjusted EPS of 8.9p, up 3.5%
· Strong free cash flow generating £18.0m, up 12.5%

· The Group continues to make good progress on its strategic priorities
- Impressive revenue and profit growth in Parcel Freight
- Continued resilience in core News business
- Pass My Parcel growing customers, services and brand awareness
- E-commerce initiatives in Books and Education helping to offset currently challenging markets

· Ongoing confidence in Group prospects reflected in DPS of 3.0p up 3.4%

5yr contract extension with Northern & Shell

Regrets, I’ve got a few, but . . .

Trading Update

Connect Group PLC, a leading specialist distributor operating in four divisions; News & Media, Parcel Freight, Education & Care and Books, is today issuing its Trading Update covering the 20 week period to 21 January 2017.

Total Group revenues increased 0.2% compared to the same period last year, whilst total Group like for like revenues increased 0.6%.

The performance of each division was as follows:

· Connect News & Media: News total revenues decreased by 2.6%, and like for like revenues decreased by 2.3%. Newspaper and magazine revenues were both in line with our medium term expectations. Our ongoing cost efficiency programme facilitates continued investment in Pass My Parcel. Media total revenues increased by 8.7% while like for like revenues increased by 6.0%.

· Connect Parcel Freight: total and like for like revenues both increased by 5.2% in the period. The Group continues to make a sizeable investment in the Parcel Freight division, to establish a platform for growth through sales leadership, customer service and operational excellence. We anticipate a greater percentage of Tuffnells' full year profit to be generated in the second half than was the case last year.

· Connect Education & Care: total and like for like revenues both decreased by 4.6%. Core revenues decreased by 4.4% with increased revenues in Early Years being offset by difficult trading conditions in our other markets.

· Connect Books: total revenues increased by 14.3%, while like for like revenues increased by 15.1%. Strong growth in Wholesale and Wordery was offset by continued difficult trading conditions in our higher margin library markets.

The Group will announce its interim results for the six months ending 28 February 2017 on 25 April 2017.

26 Jan Peel Hunt Add 143.88 167.00 167.00 Reiterates

26 Jan finnCap Buy 143.88 196.00 196.00 Reiterates

26 Jan Liberum Capital Buy 143.88 170.00 170.00 Reiterates

Unaudited Interim Results for the six months ended 28 February 2017

Highlights:

· Proposed sale of Education & Care, a significant milestone in the Group's strategy
· Robust continuing Adjusted profit, driven by a resilient performance in News distribution
· News distribution, on track to achieve £10m of efficiencies by FY2018
· Pass My Parcel - new returns services with Amazon and French Connection, and a contract with UK Mail for returns and 'failed household deliveries', expected to go live in the second half
· Parcel Freight revenue growth of 5.1%, helping support £1.5m of planned investment
· Good free cash flow generation after allowing for increased capital expenditure
· Leverage reduced to 1.8x with a further reduction to circa 1.2x on completion of the sale of Education & Care
· Interim dividend of 3.1p reflects confidence in the ongoing strength of the Group
· No change in management expectations for the full year performance