TIDMSNWS

RNS Number : 1605N

Smiths News PLC

30 May 2022

This document contains inside information

Smiths News plc

("the Company")

Update on McColl's Retail Group's Administration

The Company is issuing this announcement as an update following the administration of McColl's Retail Group ("McColl's") (see the Company's RNS No. 6621K issued on 6 May 2022) and the subsequent confirmation from the administrators that unsecured creditors of Martin McColl Limited can expect to receive estimated distribution prospects of between 20% and 40%.

Immediately following McColl's administration, the Company took steps to mitigate McColl's bad debt risk and has reduced the debt to GBP5.6m, a claim of which is being filed with the administrator. In light of the administrator's latest guidance, the Company expects the overall bad debt risk to further reduce and to be in the region of GBP3.4m to GBP4.5m, which will impact statutory profit after tax for the full year. The Company continues to supply McColl's under its new ownership on improved payment terms, which provides partial mitigation to the impact on cash flow.

The Board confirms its intention to maintain payment of the planned interim dividend of 1.4p per share, as announced as part of the Company's interim financial results on 4 May 2022. Beyond the impact of the McColl's administration, underlying trading continues to be in line with expectations and, given the Company's on-going cash generation and strong net debt reduction, the Board continues to expect to be in a position to recommend a final dividend for FY2022 up to the full distribution permissible under the Company's current banking facilities (GBP10m per financial year), for payment in February 2023.

Enquiries:

 
 Smiths News PLC 
  Jonathan Bunting, Chief Executive        Via Buchanan 
  Officer 
  Paul Baker, Chief Financial Officer 
 www.smithsnews.co.uk 
 Buchanan 
  Richard Oldworth / Jamie Hooper 
  / Toto Berger 
  smithsnews @buchanan.uk.com 
  www.buchanan.uk.com                      020 7466 5000

About Smiths News PLC

Smiths News PLC and its core business, 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.

Ancillary businesses include: Dawson Media Direct (DMD) which supplies airlines and travel points in the UK; and Instore, which offers field marketing services to retailers and suppliers across the UK.

Person responsible for arranging release of this announcement:

Stuart Marriner, General Counsel & Company Secretary

Smiths News plc

Rowan House

Cherry Orchard North

Kembrey Park

Swindon

SN2 8UH

email: cosec@smithsnews.co.uk

LEI: 2138004O33ONVOOQXB02

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

MSCSEWFMUEESEEI

(END) Dow Jones Newswires

May 30, 2022 02:01 ET (06:01 GMT)

Smiths News (AQSE:SNWS.GB)
Historical Stock Chart
From Nov 2024 to Dec 2024 Click Here for more Smiths News Charts.
Smiths News (AQSE:SNWS.GB)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Smiths News Charts.