Leading UK newspaper distributor Smiths News has reported a “resilient” trading performance despite the long-term decline of demand for newspapers.
Revenue at the company grew by 1.1 per cent in the 53 weeks to 31 August.
The full-year result was despite a revenue drop of two per cent in the first half of the year.
Its performance was boosted by additional sales volumes attributed to the men’s UEFA European Championships, it said, as well as “cover price inflation [and] ongoing traction from organic growth initiatives”.
Smiths said it expects operating profit in 2024 to be “at least in line” with market expectations of £38.2m.
The company, which delivers newspapers and magazines for national and regional publishers to around 23,000 customers across England and Wales daily, said it delivered cost savings of £5.6m during the year.
In May this year, Smith announced a new deal to replace its old loan agreement that was due to expire in 2025.
The new agreement, arranged with two banks the company already works with, Santander and HSBC, will give Smiths News access to a £40m revolving credit facility.
Under the deal, Smiths also removed its previous dividend and distribution cap of £10m per year in a revision of its capital allocation policy. The higher dividend is expected to be paid in February 2025.
Jonathan Bunting, Chief Executive Officer, 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.
“With the business making progress in line with our plans and our growth initiatives continuing to have positive momentum, I look forward to providing a more detailed update at the Company’s full year results in November.”