Business
Trading Update
Trading Update.
About this update from Smiths News Plc
[{"type":"text","content":"\n \n \n RNS Number : 8721S\n Connect Group PLC\n 14 July 2020\n \n \n \n \n This announcement contains inside information\n \n \n \n \n \n 14 July 2020\n \n \n Connect Group PLC\n \n \n (\"the Company\" or \"the Group\")\n \n \n \n \n \n Trading Update \n \n \n \n \n \n \n \n \n Connect Group is pleased to present a year-to-date trading update for the 44 week period to 4 July 2020. \n \n \n \n \n \n Trading Update \n \n \n \n \n \n Core trading remains resilient despite the considerable disruption to the UK economy at present. Thanks to the outstanding efforts of our colleagues we have successfully maintained service levels to our customers and to the general public, whilst continuing at all times to safeguard the health, safety and wellbeing of colleagues and customers.\n \n \n \n \n \n As previously reported in our interim financial results published on 13 May 2020, during the first six weeks following the UK Government's introduction of restrictions on social movement on 23 March 2020, demand for newspapers and magazines was adversely impacted by 25%, as a consequence of restrictions on movement and the temporary closure of approximately 10% of the retailers we supply (including high street and travel outlets). \n \n \n \n \n \n Since then, with the consistent and gradual reduction in the Covid-19 lockdown restrictions and as consumer shopping behaviours have adjusted, we have seen a marked increase in retail store outlets re-opening, such that, at this time, less than 5% of our customers' stores, predominantly travel and leisure locations, remain closed. As a result, newspaper sales in the 15 week period to 4 July 2020 have been 12% lower than the equivalent period pre-lockdown. Magazine sales have similarly recovered, albeit more gradually, due in part to the continuing closure until mid-June 2020 of the majority of our largest magazine retailer's stores. Magazine sales in the same 15 week period to 4 July 2020 consequently are 18% lower to the equivalent period pre lockdown. We expect continued improvement in magazine sales during July and August 2020 as retailers re-stock to current content and copy. \n \n \n \n \n \n Sales at Smiths News for the period 1 September 2019 to 4 July 2020 were £927m (2019: £1,012m) a decrease of 8.4%. During the sam...