Smiths News PLC Post-Close Trading Update (2196A)
September 22 2022 - 1:01AM
UK Regulatory
TIDMSNWS
RNS Number : 2196A
Smiths News PLC
22 September 2022
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 GBP40m, 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 GBP4.4m,
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 (GBP10m
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
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END
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