13th Aug 2019 08:43
(Alliance News) - Newspaper and magazines distributor Connect Group PLC on Tuesday said overall trading in the second half is "slightly below" market estimates due to a slower turnaround performance in Tuffnells parcels unit, offsetting stronger performance in Smiths News division.
The company, which was formerly called WHSmith News, also said a potential sale and leaseback of up to 16 freehold and long-lease properties within the Tuffnells estate is unlikely to conclude before end of its current financial year due to current market conditions and outlook.
"The proposals received did not meet the board's expectations in respect of value, economic return and timings," Connect said. The sale was expected to raise up to GBP35 million for the company.
Connect expects second half net debt to remain flat on first half at GBP77.5 million. It plans to release its results for the year ending August 31 on November 6.
Shares in the company were down 5.9% at 35.40 pence each in London on Tuesday morning.
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