Newspaper wholesaler starts year full of confidence
Newspaper and magazine wholesaler Smiths News said trading is in line with market expectations in a short update.
The Swindon business issued the statement ahead of its annual general meeting.
The company said overall trading in the year to date is in line with market expectations.
Revenues in the core business are ahead of historical trends thanks in part to cover price increases.
The company said inflation continues to be managed in line with its business plan and sustainable efficiency savings and operational cost controls are all on track.
The board said it remains confident in the company’s profit and cash generation.
Significant progress has been made to progress long-term publisher contract renewals, with 46 per cent of newspaper and magazine revenues now secured through to 2029.
Management continues to execute a strategy of enhancing core operations while developing adjacent opportunities and moving up the value chain.
Chief executive Jonathan Bunting, said: “We have entered 2023 with confidence that our plans will deliver sustained profit and cash generation.
“The proposed final dividend of 2.75p payable in February 2023 will reward our shareholders and demonstrate the strong cash flow generation of the business.
“I am grateful to our people who continue to show exceptional dedication and capability. On behalf of the Board, I would like to express my thanks for their essential contributions to our progress.”
Smiths News, is the UK’s largest newspaper and magazine wholesaler, with an approximate 55 per cent. market share.
It distributes newspapers and magazines on behalf of the major national and regional publishers, delivering to approximately 24,000 customers across England and Wales on a daily basis.
The speed of turnaround and the density of Smiths News’ coverage is critical to one of the world’s fastest physical supply chains.