TIDMNWOR
RNS Number : 4231A
National World PLC
24 May 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF REGULATION 2014/596/EU (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018 (THE "EUWA")) ("UK MAR"). UPON THE PUBLICATION OF THIS
ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.
National World plc
("National World," "the Company" or "the Group")
Trading update for the 21 weeks to 27 May 2023
National World plc issues the following trading update for the
21 weeks to 27 May 2023, ("the period") ahead of its Annual General
meeting on 24 May 2023.
Highlights
-- 7% digital growth in challenging economic conditions
-- Overall revenue decline mitigated by digital growth and acquisitions
-- Continued pivoting towards more diverse and sustainable revenue streams
-- Maintaining profit expectations for the full year
-- Maiden dividend proposed, payable 5 July to shareholders on the register on 2 June
National World's Chairman, David Montgomery, said:
"We have continued to reposition the business towards our new,
digital-only operating model - meaning full automation of all
content resourcing and production processes across all platforms,
including print. We already lead the local publishing sector in
video exploitation and are in the process of relaunching the
majority of our brands deploying the new model.
"Our five recent acquisitions focus on original content serving
key communities, by sector and locality, and expected to add
further acquisitions in the coming months.
"These acquisitions, combined with the accelerated
implementation of the new operating model, we expect to compensate
for the recent downturn in advertising sales impacting the
sector."
Trading
Against a difficult background for advertising, total Revenue
for the period has declined by just 5% year-on-year, benefiting
from both continuing growth in digital and recent acquisitions. In
April and May revenue is down 1% year-on-year following an 8%
decline in the first quarter.
Digital revenue is expected to grow by 7% year-on-year for the
period. Video revenues have more than doubled compared to the same
period last year, driven by a 15% increase in video views.
Overall audience for the period increased by 20% year-on-year
with page views reaching a peak of 167 million in the January
football transfer month. Audience increased by 9% year-on-year,
excluding the benefit of the Scoopdragon and Newschain
acquisitions. Although continuing to grow, digital revenue momentum
has been impacted by lower yields reflecting the sector-wide
cooling of advertising demand.
Print revenue decline of 13% in the first quarter has been
reduced to a 3% decline in April and May, again helped by
acquisitions, including the addition of the Rotherham Advertiser,
which is now the Group's highest circulation weekly newspaper.
Acquisitions
For the five acquisitions completed in the period, the Group
paid a total consideration of GBP3.0 million, (GBP1.9 million
consideration net of cash acquired) funded from its existing cash
resources. Revenue of GBP2.0 million and EBITDA contribution of
GBP0.4 million are expected in the first half, with the bulk of
this flowing from 1 May. For the full year, revenues of
approximately GBP7.0 million are expected with an EBITDA
contribution of more than GBP1.0 million.
Management is continuing to look at further potential
value-creating acquisitions that align with the Group's strategy as
it repositions the business towards the new operating model,
underpinned by greater productivity in specialist and original
content.
The acquisition of Insider Media, with its regional B2B
audience, indicates the route to sustainable revenues and growth as
this business focuses on expert coverage of its sectors through
daily online reporting, digital newsletters, events and, soon,
exclusive video content.
Management has accelerated plans to integrate the recent
acquisitions and to adopt the new operating model. We are confident
these actions will deliver the required operating cost savings from
June onwards, rather than rely solely on the more optimistic
forecasts of an advertising pick-up.
Financial position
The Group maintains a strong financial position with a cash
balance of at least GBP21.0 million at the end of May, offset by
GBP1.0 million of outstanding loan note debt. Since the year-end,
National World has made the final deferred instalment of GBP2.5
million in respect of the purchase of JPIMedia Group acquired in
2021.
The Board has recommended the payment of a maiden dividend on 5
July to shareholders on the register at 2 June in recognition of
the Company's significant progress over the last two years, during
which time it has generated Adjusted EBITDA of GBP19.8 million on
the assets acquired at the start of 2021 for GBP10.2 million.
Outlook
The Company remains confident that investment and development of
its digital business, together with the adoption of our new
operating model and careful cost management, will continue to
support profits and cash flow despite challenging economic
conditions. Performance for the year is forecast to be in line with
the Company's expectations.
- Ends -
For the purposes of UK MAR the person responsible for arranging
for the release of this announcement on behalf of National World is
David Montgomery, Executive Chairman.
Enquiries:
National World plc
David Montgomery
c/o Montfort Communications
Dowgate Capital Limited - Financial Advisers
and Brokers
David Poutney
James Serjeant +44 (0)20 3903 7715
Montfort Communications
Nick Miles +44 (0)77 3970 1634
Olly Scott +44 (0)78 1234 5205
Forward-looking statements
This announcement may include statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will", or
"should" or, in each case, their negative or other variations or
comparable terminology. These forward-looking statements include
matters that are not historical facts. They appear in a number of
places throughout this announcement and include statements
regarding the directors' current intentions, beliefs or
expectations concerning, among other things, the Company's results
of operations, financial condition, liquidity, prospects, growth,
strategies and the Company's markets. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. Actual results and
developments could differ materially from those expressed or
implied by the forward-looking statements. Forward-looking
statements may and often do differ materially from actual results.
Any forward-looking statements in this announcement are based on
certain factors and assumptions, including the directors' current
view with respect to future events and are subject to risks
relating to future events and other risks, uncertainties and
assumptions relating to the Company's operations, results of
operations, growth strategy and liquidity. Whilst the directors
consider these assumptions to be reasonable based upon information
currently available, they may prove to be incorrect. Save as
required by applicable law or regulation, the Company undertakes no
obligation to release publicly the results of any revisions to any
forward-looking statements in this announcement that may occur due
to any change in the directors' expectations or to reflect events
or circumstances after the date of this announcement.
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END
TSTFFFVIESIVFIV
(END) Dow Jones Newswires
May 24, 2023 02:00 ET (06:00 GMT)
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