Business
Interim Management Statement & Contract Renewals
Interim Management Statement & Contract Renewals.
About this update from Smiths News Plc
[{"type":"text","content":"\n \nRNS Number : 8590I Smiths News PLC 09 July 2013 \n \n\nSmiths News PLC\n('Smiths News' or \"the Group\")\n \nINTERIM MANAGEMENT STATEMENT AND CONTRACT RENEWALS\n \nSmiths News PLC, the largest UK newspaper and magazine wholesaler, a leading UK book supplier and a leading specialist distributor of consumable products to the education market, is today issuing its Interim Management Statement covering the 44 week period to 6 July 2013.\n \nThe Group remains on track to deliver strong growth in profit before tax for the year to 31 August 2013, in line with market consensus.\n \nTotal Group revenues increased 0.7% year on year, boosted by the contribution from the acquisition of The Consortium in April 2012.\n \nThe sales performance of each business unit is as follows;\n \n· Smiths News total revenues declined by 3.2% and by 4.6% on a like for like basis which remains consistent with previous medium term projections.\nBoth newspaper and magazine performance is also in line with recent run rates and with expectations.\n \n· Bertrams total revenues increased by 11.2% and by 2.0% on a like for like basis.\nNew additional revenue from the recently launched direct to consumer offer, Wordery, continue to grow, accounting for the majority of the positive total sales increase.\n \n· The Consortium total revenues declined 1.5% and increased by 1.4% on a like for like basis.\nCare sales continue to grow strongly off-set by a weak quarter in Education. The profit of the business unit remains in line with expectations.\n \n· Due to the disposal of MMC on 30 April 2013, Media and Marketing total revenues declined by 6.9%. DMD continues to trade in line with expectations.\n \nThe Group is also pleased to announce today it has reached agreement with Associated Newspapers Ltd to extend their newspaper wholesaling agreement until October 2021 and separately it has also reached agreement with COMAG to extend their magazine wholesaling agreement until December 2020.\n \nThese new agreements secure the current market share of both Associated Newspapers' newspaper distribution business and COMAG's magazine distribution business for an additional five years.\n \nThe Associated Newspapers Lt...