2nd Oct 2024 12:14
(Alliance News) - Smiths News PLC on Wednesday said it anticipates full-year results in line with market guidance, as growth initiatives have boosted annual cost savings.
The Swindon, England-based newspaper and magazine distributor said it expects to report adjusted operating profit of GBP38.2 million for the 53 weeks to August 31, in line with company-compiled market expectations.
The cited market consensus also predicts pretax profit of GBP32.7 million for the full year.
The company said moderate revenue growth of 1.1% was supported by additional sales volumes, specifically attributed to the men's UEFA European Championships, cover price inflation, ongoing traction from ongoing growth initiatives, and an additional week of trading during the financial year.
It has reportedly delivered cost savings of GBP5.6 million for the year, as its growth initiatives have delivered an increasing contribution to profit, in line with expectations.
The group will declare its final dividend after its distribution cap of GBP10 million per year has been removed. Final dividends are expected to be paid in February 2025.
Chief Executive Officer Jonathan Bunting said: "I am pleased with the group's performance across the second half of the year as we continued to deliver on our core strategy, providing our customers and industry partners with an excellent level of service. The business is making progress in line with our plans and our growth initiatives are continuing to have positive momentum."
Smiths News will publish its full-year results on November 5.
Shares in Smiths News were up 1.4% at 58.00 pence each in London on Wednesday afternoon.
By Emily Parsons, Alliance News reporter
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