Smiths News looking beyond newspapers
Smiths News, the largest UK newspaper and magazine wholesaler, saw flat profits in the first half but said it was on track for 2012.
Smiths News, the largest UK newspaper and magazine wholesaler, saw flat profits in the first half but said it was on track for 2012.
In the six months to the end of February, the firm posted pre-tax profits of £18.8m, up 0.5% on the year before.
Earnings per share came in at 7.6%, the same as last year, but the firm pushed up its dividend 7.7% to 2.8p.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It also announced it will splash out £38m on Hedgelane Limited, whose principal subsidiary trades as The Consortium for Purchasing and Distribution.
The Consortium distributes products such as stationery, art and craft, janitorial and curriculum products to the educational market.
Smiths said it was looking to expand beyond its core magazine and newspaper markets and become a leading specialist distributor.
"The Consortium is a profitable, cash generative business that is expected to add an additional £64m sales and £7m EBITDA to Smiths News on a pro forma full year 2012 basis," the firm said.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
Water bills set to rise by 21% a year – how to cut costs
Households could see their water bills soar by roughly 21% annually, but suppliers warn it’s not enough to address essential repairs.
By Oojal Dhanjal Published
-
Should you invest in Canada?
Canada presents a compelling opportunity for investors who want to look beyond the US. Greg Eckel of Canadian General Investments highlights four favourites
By Greg Eckel Published