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Smiths News PLC on Tuesday said its overall trading in financial 2023 is in line with market expectation, as the company makes headway on renewing contracts and optimising operations.
The Swindon, England-based newspaper and magazine wholesale distributor said core business revenue for the financial year ending in late August are ahead of historical trends, supported by increases in publication cover prices.
The company’s last financial year ended on August 27. Pretax profit that year was £27.9 million on £1.09 billion in revenue.
Smiths News said it is continuing to manage inflation, as sustainable efficiency savings and operational cost controls remain on target.
Smiths News said 46% of its newspaper and magazine revenue has been secured through to 2029, with significant progress having been made with long-term publisher contract renewals.
The company is confident in its profit and cash generation, Smiths News noted, as it continues ‘enhancing core operations while developing adjacent opportunities and moving up the value chain’.
Chief Executive Officer Jonathan Bunting commented: ‘We have entered 2023 with confidence that our plans will deliver sustained profit and cash generation. The proposed final dividend of 2.75p payable in February 2023 will reward our shareholders and demonstrate the strong cash flow generation of the business’.
The company final dividend of 2.75p per share for financial 2022, declared in December, more than doubled from 1.15p per share in 2021.
Smiths News shares were down 7.58% trading at 51.25 pence per share on Tuesday morning in London.
By Harvey Dorset, Alliance News reporter
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