Smiths News trading to meet expectations

NEWSPAPER and magazine distributor Smiths News says it expects to deliver its full-year results in line with expectations despite a fall in revenues and profits over the half year.

The Swindon-headquartered company saw operating profit drop 7.8% to £18.8m for the 26 weeks ending February 24, while revenues fell 1.9% to £539.8m on the year before.

The business said it had made cost savings of £3.1m in line with its plans, however, and had renewed major contracts with 74% of existing publishers until 2029. It also said it had reduced its bank net debt by 56% to £10.0m while average net debt decreased by 53% to £12.5m. The company will pay an interim dividend of 1.75 pence per share – up 25% on the same period last year – which will be paid on July 4.

Smiths News said trading in the second half of the financial year would be boosted by England and Scotland’s upcoming participation in the men’s UEFA European Championships.

Jonathan Bunting, chief executive, said: “I am pleased to report solid performance across the first half of 2024. It has been another period of strong cash generation, scale cost savings, and further momentum on the contribution from our growth strategy.”

Yesterday, Smiths News confirmed it had also agreed a new financing deal to replace its current agreement, which was due to end on August 31, 2025. The agreement is with two of the company’s existing lenders – Santander and HSBC – and comprises a £40m revolving credit facility, with an additional £10m uncommitted accordion facility. The agreement is over a three-year term.