Smith News sees PTP growth

Smiths News, the largest UK newspaper and magazine wholesaler, remains on track to deliver strong growth in pre-tax profits for the year to 31 August 2012, in line with market consensus.

During the 18 week period to 7 January 2012 revenues increased 1.9% year on year, boosted by contributions from the newly acquired Dawson Books, Dawson Media Direct and Dawson Marketing Services divisions.

Trading performance of the Dawson businesses are in line with expectations and integration is progressing well, the firm said. Full year synergy benefits of £2.5m are on track.

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However, Smiths News' revenues declined 3.2% on a like-for-like (LFL) basis, although this is an improvement on recent run rates and compares with a decline of 3.5% for the second half 2010/11. Newspaper performance has been stronger in the period as a result of cover price increases, with magazine performance broadly in line.

Bertrams' revenues declined 0.6% on a LFL basis, also an improvement on the most recent run rate decline of 1.4% for the second half 2010/11. A good start to the period in question was softened by more difficult Christmas trading, the firm added.

The share price rose 3.25% to 79.5p by 13:06.

NR