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.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
