Link to Old company thread

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.

Company Website

Financial Calendar

Recent Broker notes

BarChart Indicators

Recent Market news

Connect Group Fundamentals

SMITHS NEWS AGREES NEW FIVE YEAR CONTRACT EXTENSION WITH FRONTLINE AND SEYMOUR

Smiths News PLC ('Smiths News'), the largest UK newspaper and magazine wholesaler, a leading UK book supplier and a leading distributor of consumable products to the education market, is pleased to announce it has reached agreement with Frontline and Seymour to extend their magazine wholesaling agreement until April 2020.

This new agreement secures 42% share of the magazine market for an additional five years. The contract is valued at c.£215m pa (at FY14 values) equating to 15% of the total national newspaper and magazine distribution market. Frontline distribute titles from publishers H Bauer, Immediate Media and Haymarket, while Seymour distribute magazines on behalf of many publishers including Future Publishing and Dennis Publishing.

Smiths News has now secured c.£1.1billion per annum of revenues through to at least 2019, and in some cases beyond, equating to 77% of total sales.

SMITHS NEWS PLC CHANGES NAME TO CONNECT GROUP PLC


In line with its strategy to become a more broadly diversified specialist distribution business and as previously announced on 17 March 2014, Smiths News confirms it has today changed its name to Connect Group PLC.

Trading in the Company's shares on the Main Market of the London Stock Exchange under the new name of Connect Group PLC will take effect from 23 April 2014. The Company's stock exchange ticker will change to CNCT.

The Company's corporate website will change to www.connectgroupplc.com

Unaudited Interim Results for the six months ended 28 February 2014


Highlights:

· Rebranding to 'Connect Group PLC' complete

· Robust Group financial performance; 24% profits outside newspaper and magazine wholesaling activities

· Continued strategic progress across the Group
- News & Media:
§ Secured over £1.1bn of total annualised revenues through to 2019 and beyond, representing over 77% of contracted revenues
§ Newspaper sales up 0.9% driven by new business wins, cover price inflation, strong promotions and continued progress on cost efficiencies with £3.2m achieved in first half
- Books:
§ Margin pressure and slower than expected return on investments impacted first half profit performance
§ Wordery continues to drive sales growth, now 11% of total Book sales
- Education & Care:
§ Strong sales momentum in core categories up 5.0%
Range alignment and expansion in new catalogues

· Trading in line with current market expectations

Thanks for new thread skinny, appreciated.

NWS/CNCT Combined chart.

175p touched.

Aberforth Partners LLP > 5%

175p broken atm.

180 on the bid - 190 and the 'gap' beckons.

Closed +24.

LGEN < 3%

Gap closed!

Interim Management Statement

Connect Group PLC ("the Group") a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today issuing its Interim Management Statement covering the 44 week period to 5 July 2014.

Total Group revenues increased 0.2% year on year and performance for the Group remains broadly in line with current market expectations for the full year.

The performance of each division is as follows;

· Connect News & Media; News revenues increased by 0.1% driven by strong World Cup sticker sales. Like for like revenues decreased by 2.1% with both newspaper and magazine performance continuing at recent robust run rates. Consequently, full year performance will be above previous expectations. Media revenues decreased by 3.2% and on a like for like basis by 2.8%.

· Connect Books; revenues increased by 2.6% due to recent acquisitions and by the continued strong performance of Wordery. Like for like revenues decreased by 3.2% reflecting increased pressure across other channels. Recent recovery actions expected to reduce costs and increase margins are being delivered, although as a result of continued sales pressure particularly in Library services and Academic markets we expect full year performance will be below previous expectations.

· Connect Education & Care; revenues increased by 2.2% and on a like for like basis by 2.2%. Core revenues were up 4.4% on a like for like basis with the Education and Early Years channels performing more strongly than the smaller Care channel. Momentum is building for the key peak trading period which has started as planned and full year performance remains in line with previous expectations.

There has been no change in the underlying financial condition of the Group since the half year ended 28 February 2014 and the Group continues to operate well within its bank facilities.

The Group will announce its preliminary results for the twelve months ending 31 August 2014 on 15 October 2014.

N+1 Singer Hold 173.50 184.00 184.00 Reiterates

Oriel Securities Buy 173.50 - 225.00 Reiterates

Pre Close Statement

Connect Group PLC ("the Group")a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today issuing its pre close statement for the twelve months ending 31 August 2014.

Since the previous update on 8 July 2014, the Group and each of its divisions have performed in line with management expectations and, as a result, Group underlying profit before tax is expected to be in line with recent guidance. Group basic underlying EPS is expected to be slightly ahead of recent guidance as a result of prior year tax credits being higher than previous management expectations. With respect to each division:

· Connect News & Media: Newspaper and magazine performance has continued at recent robust run rates. Media has performed in line with expectations.

· Connect Books: management actions are taking effect, and recent performance has stabilised in line with management expectations.

· Connect Education & Care: performance has been in line with management expectations through the peak trading period.

There has been no change in the underlying financial condition of the Group since the half year ended 28 February 2014 and the Group continues to operate well within its new bank facilities.

The Group will announce its prelim results for the twelve months ending 31 August 2014 on 15 October 2014. An analyst briefing will be held at 9.30am on 15 October 2014 at the offices of Buchanan, 107 Cheapside, EC2V 6DN.

5yr contract extension with Guardian News & Media

Connect Group PLC ("the Group") a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today delighted to announce Smiths News, the UK's leading newspaper and magazine wholesaler, has reached an agreement with Guardian News and Media to extend their newspaper wholesaling agreement until February 2021.

The new agreement secures the existing 60% market share of Guardian News and Media's distribution business for an additional five years.

The contract is valued at £63m pa (at FY14 values) equating to 7% of the national newspaper distribution market. Guardian News and Media publishes both The Guardian and The Observer which sell 180,000 and 200,000 papers per day respectively.

Following this extension, Smiths News has now secured c.£1.2bn of revenues per annum (at FY14 values) through to 2019 equating to 84% of total sales.

Preliminary Results Announcement for the year ended 31 August 2014

2014 HIGHLIGHTS:

· Solid financial performance
o Group Underlying Revenue and Underlying PBT marginally ahead of last year
o Free cash flow of £37.2m, up 14.1%
o Net Debt reduced to £93.0m, 1.4x net debt / adjusted EBITDA

· Increased shareholder returns
o Underlying EPS 21.7p, up 2.8%
o Final dividend of 6.6p, making a full year dividend of 9.7p, up 4.3%

· Stronger than forecast Newspaper and Magazine sales
o Impressive World Cup sales
o Positive impact of Supermarket promotions

· Books division performance now stabilised with management actions continuing to take effect

· Education & Care division growing core categories and delivered good peak trading

· Launch of two new organic opportunities supporting ongoing diversification
o Pass My Parcel, a click and collect delivery service with Amazon, live in over 500 independent retailers
o Jack's Beans, a premium vended coffee service, live in 120 independent retailers

LAUNCH OF PASS MY PARCEL DELIVERY SERVICE WITH AMAZON

New click and collect delivery service with Amazon

Connect Group PLC ("the Group") a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today delighted to announce the launch of Pass My Parcel, a new and wholly owned 'click and collect' delivery service. Pass My Parcel is a solution developed by the News and Media division ("the Division") which over time has the potential to be part of the long term diversification strategy for the Division. Pass My Parcel has secured Amazon, the UKs leading on-line retailer to launch the service.

Pass My Parcel is a highly innovative new parcel collection service utilising the current Smiths News' specialist time sensitive distribution capability, physical network, and its daily relationship with thousands of local retailers across the UK, enabling the development and rollout to be achieved in a more cost effective way than other companies. Pass My Parcel will offer a unique twice daily distribution to participating independent retail outlets, 7 days a week, 364 days a year.

When selecting Pass My Parcel as a delivery option, customers ordering on-line by 7.45pm will be able to collect their parcel from 6.30am the next morning, or, if ordered by 11.45am will be able to collect from 4pm the same day. This service of two time sensitive deliveries per day, (once on a Sunday), offers customers a convenient and secure way to pick up their parcels, with a level of service and flexibility unlike any other offer in the market today.

Customers selecting Pass My Parcel delivery to their local independent retailer will be electronically sent a specially generated pin code in order to securely collect their parcel. This new service will allow customers more control over when and where they choose to pick up their items.

Pass My Parcel will utilise Smiths News' information systems, invoicing and communication facilities and provide access to over 500 independent retail outlets being serviced by 12 Smiths News' depots.

Ex-divi 8th Jan 2015 (6.6p)

Liberum Capital repeated its 'buy' call on the stock, with a 200 pence per share target price.

PROPOSED ACQUISITION OF TUFFNELLS PARCELS EXPRESS AND UNDERWRITTEN CIRCA £55 MILLION RIGHTS ISSUE

· Connect Group to acquire Tuffnells Parcels Express ("Tuffnells") a leading provider of next day Business to Business ("B2B") of mixed freight / parcel consignments, specialising in items of irregular dimension and weight;
· Leverages Connect Group's core capabilities in time sensitive and efficient delivery in specialist markets;
· A strong standalone business with proven track record underpinned by a large, fragmented and growing market;
· Provides the Group with a national distribution network with potential opportunities to enhance the Group's existing operations in the medium term, such as Pass my Parcel;
· The Acquisition is a significant strategic opportunity and a key step in the Group's medium term diversification ambitions;
· Initial consideration of £113.4m on a multiple of 6.3x LTM Adjusted EBITDA1, funded through recently extended debt facilities and circa £55m Rights Issue. Additional £15.3m deferred consideration subject to performance and retention conditions over a three year period;
· Run rate cost synergies of £2.0m per annum expected by year three and opportunity for additional revenue synergies through shared network and distribution capabilities;
· Strong financial effects of the transaction, being earnings enhancing in Year 1 and substantially enhancing in Year 3, with return on invested capital ahead of the Group's cost of capital in first full year2; and
· Strong cash generation supports continuation of the Group's progressive dividend policy