Pre Close Statement

RNS Number : 1608Q

Connect Group PLC

28 August 2014

 



Connect Group PLC

('Connect Group' or "the Group")

PRE CLOSE STATEMENT

Connect Group PLC ("the Group")a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today issuing its pre close statement for the twelve months ending 31 August 2014.

Since the previous update on 8 July 2014, the Group and each of its divisions have performed in line with management expectations and, as a result, Group underlying profit before tax is expected to be in line with recent guidance. Group basic underlying EPS is expected to be slightly ahead of recent guidance as a result of prior year tax credits being higher than previous management expectations. With respect to each division:

·   Connect News & Media: Newspaper and magazine performance has continued at recent robust run rates.  Media has performed in line with expectations.

·   Connect Books: management actions are taking effect, and recent performance has stabilised in line with management expectations.

·   Connect Education & Care: performance has been in line with management expectations through the peak trading period.

There has been no change in the underlying financial condition of the Group since the half year ended 28 February 2014 and the Group continues to operate well within its new bank facilities.

The Group will announce its prelim results for the twelve months ending 31 August 2014 on 15 October 2014. An analyst briefing will be held at 9.30am on 15 October 2014 at the offices of Buchanan, 107 Cheapside, EC2V 6DN.

Note: The following definitions have applied consistently throughout Connect Group PLC results for FY13 and will continue to apply for FY14:

(1) Underlying results exclude non-recurring items and amortisation of acquired intangibles and include the results of acquired businesses from the date of acquisition and excludes results from businesses disposed in the prior period.

Enquiries:

Connect Group PLC
Mark Cashmore, Group Chief Executive	Tel: [phone]
Nick Gresham, Chief Financial Officer
Buchanan
Jeremy Garcia / Gabriella Clinkard	Tel: [phone]

About Connect Group PLC:

Connect Group PLC is a leading specialist distributor operating in large and diverse markets. The Group has three separate divisions, connecting suppliers to customers in an efficient, knowledgeable and service oriented way:

Connect News & Media - Encompassing: Smiths News, the UK's largest news wholesaling business with an approximate 55% market share, distributing newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. Smiths News serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents; and Dawson Media Direct, an international media direct business supplying newspapers, magazines and inflight entertainment technology and content to over 80 airlines in 50 Countries,

Connect Books - Combining a number of recognised brands in print and digital bookselling, including Bertram's, Dawson Books and Wordery. A leading distributor of physical and digital books, the division serves over 8,200 customers in approximately 100 countries, with over 200,000 in stock titles and access to over a further 7 million consumer and 20 million academic titles,

Connect Education & Care - A leading independent supplier of consumables through The Consortium and West Mercia Supplies with an approximate 5% market share. The division serves over 30,000 customers with an extensive range of over 40,000 products across a branded, own brand and value range, including stationery, arts and craft and cleaning.

 

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