Reach PLC Trading Update (8670X)
02 May 2019 - 4:00PM
UK Regulatory
TIDMRCH
RNS Number : 8670X
Reach PLC
02 May 2019
2 May 2019
Reach plc
Trading Update
Solid start to 2019
Reach plc ('the Group') is issuing a trading update for the 4
month period from 31 December 2018 to 28 April 2019 ('the period'),
ahead of its 2019 Annual General Meeting later today.
Outlook in line with market expectations (1)
The Board anticipates performance for the year to be in line
with market expectations.
Like for like (2) revenue trends improved on prior year
Group revenue in the period grew by 4.4%, reflecting the benefit
of the inclusion of the Express & Star acquisition for four
months in the current period versus two months in the comparative
period.
On a like for like basis Group revenue in the period fell by
6.4%, an improvement on the 7.8% like for like fall in the first
four months of 2018. Within like for like revenue, print (3) fell
by 7.9% and digital (3) grew by 8.4%. There are a series of digital
initiatives underway, which are expected to further accelerate this
growth.
Integration of Express & Star continues to progress well
We remain on track to deliver synergy savings of at least GBP20
million per annum by 2020.
Strong cash flows and further reduction in net debt
Net debt at the end of April of GBP22.2 million comprised
drawings on the Acquisition Term Loan of GBP39.7 million (reduced
from GBP60.0 million at the year end following early repayment of
GBP20.3 million due in December 2019) less cash balances of GBP17.5
million.
Simon Fox, Chief Executive, commented:
"I am pleased with the solid start to the year and the positive
improvement in revenue trends. Our early term loan repayment
demonstrates the continued success of the Express & Star
acquisition and the strong cash generation of the Group. We also
continue to make good strategic progress, most importantly with a
range of digital projects to drive both page views and revenue, the
effects of which we expect to see in the second half of the
year."
Enquiries
Reach
Simon Fox, Chief Executive
Simon Fuller, Chief Financial Officer & Company
Secretary 020 7293 3553
Brunswick
Nick Cosgrove, Partner 020 7404 5959
Will Medvei, Director
The statement on future performance is given as at the date of
this announcement and is subject to a number of risks and
uncertainties and actual results and events could differ materially
from those currently being anticipated as reflected in the
statement. The Company undertakes no obligation to update this
forward-looking statement.
(1) The market consensus range for adjusted PBT for the 52 weeks
ended 29 December 2019 is GBP140.6 million to GBP145.1 million.
This range includes estimates from the analysts that have issued
notes since our annual results announcement on 25 February 2019.
Adjusted PBT excludes operating adjusted items (restructuring
charges in respect of cost reduction measures, pension
administrative expenses and amortisation of intangible assets) and
the pension finance charge.
(2) The like for like trends for 2019 include Express & Star
as if it had been owned from the beginning of 2018 and exclude from
the 2018 comparative the impact of portfolio changes and the
disposal of Communicator Corporation.
(3) Print revenue comprises circulation, advertising (including
digital classified which is predominantly upsold from print) and
other (including third party printing contracts). Digital revenue
comprises the combined display and transactional revenue
streams.
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.
END
TSTSSASIEFUSELI
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