Connect Group PLC Trading Update (5432G)
March 18 2020 - 2:00AM
UK Regulatory
TIDMCNCT
RNS Number : 5432G
Connect Group PLC
18 March 2020
This announcement contains inside information
Connect Group PLC
("Connect Group" or "the Group")
Trading Update
Connect Group PLC is today issuing a trading update in light of
the actions being taken around the World to contain the Coronavirus
pandemic.
Given the Group's critical role in the UK's news supply chain,
and as an essential supply partner for many of our freight
customers, we are fully committed to taking every possible step to
maintain service to our customers and to the general public at this
difficult time. Our priority at this time remains the health and
safety of our colleagues, customers and supply partners.
Core Trading
Core trading across the Group remains relatively robust despite
the considerable disruption to the UK economy at present. Both
Smiths News and Tuffnells are currently trading in line with
expectations, with cost savings dampening marginal softening of
demand in Smiths News.
While the nature of the Group's businesses provides a degree of
resilience, we remain vigilant to events and the need for flexible
contingency planning. The Group has taken appropriate measures, so
far as is possible, to ensure business continuity and we remain
alert to the general impact that the Coronavirus pandemic may have
on trading in the Group's core businesses.
Postponement of UEFA Football Championship
The announcement made by UEFA on 17 March 2020 postponing the
European Football Championship to June 2021 will impact the timing
for associated football magazines and trading card sales. The Board
expects the impact on profit in H2 2020 to be in the region of
GBP1.0m to GBP1.5m.
DMD
As a consequence of the international measures to contain the
Coronavirus pandemic, the Group's airline and travel supply
business (Dawson Media Direct / DMD) has seen a marked softening of
demand from its clients. Whilst it is too early to determine the
precise impact, our current expectations are that DMD will be at or
around breakeven in H2 2020, representing a reduction in full year
profit of around GBP1m.
Reduced Full Year Expectations for the Group
Taken together, the impact of these events on the Group gives
rise to a reduction in the Board's expectations for FY2020 full
year adjusted Profit Before Tax of between GBP2m and GBP2.5m.
While it is not possible to determine the impact of any further
measures to contain the spread of Coronavirus, the Group continues
to monitor the situation carefully and will update the market in
due course.
Enquiries:
Connect Group PLC
Jonathan Bunting, Interim Chief Executive Officer
Tony Grace, Chief Financial Officer
Investor.relations@connectgroupplc.com
www.connectgroupplc.com
Buchanan (Financial PR)
Richard Oldworth / Jamie Hooper
connect@buchanan.uk.com
www.buchanan.uk.com
Person responsible for arranging release of this
announcement:
Stuart Marriner, General Counsel & Company Secretary
Connect Group PLC
Rowan House
Cherry Orchard North
Kembrey Park
Swindon
SN2 8UH
email: cosec@connectgroupplc.com
LEI: 2138004O33ONVOOQXB02
About Connect Group
Connect Group PLC is a UK based specialist distributor and a
leading provider of distribution solutions in complex and
fragmented markets. The Group's networks are focused on serving
high density early morning deliveries and the demands of mixed and
irregular sized freight.
The Group's core businesses are each leading players in their
markets:
Smiths News
Smiths News is the UK's largest newspaper and magazine
wholesaling business with an approximate 55 per cent. market share.
It distributes newspapers and magazines on behalf of the major
national and regional publishers, delivering to approximately
25,500 customers across England and Wales on a daily basis. The
speed of turnaround in the UK and density of Smiths News' coverage
is critical to one of the world's fastest physical supply
chains.
Dawson Media Direct (DMD) supplies newspapers, magazines and
inflight entertainment technology and content to over 80 airlines
in 50 countries. Delivering to strict time windows with security
accreditation, DMD serves the specialist needs of airlines and
travel points in the UK and worldwide with printed and digital
media.
Tuffnells
Tuffnells is a leading distributor of mixed and irregular
freight, serving approximately 5,000 small and medium sized
enterprises across the UK. Its network of 36 depots collects and
delivers mixed parcel freight consignments, specialising in items
of irregular dimension and weight ("IDW"), examples of which
include bulky items, building materials and automotive parts. With
a mix of local and national clients, Tuffnells completes up to
45,000 daily deliveries, offering a range of timed services that
are responsive to customer demand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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