Smiths News increases 2013 full year dividend by 8.1%

DividendMax Ltd.

Smiths News increases 2013 full year dividend by 8.1%


Strong financial performance:

- Revenue growth despite challenging market conditions

- Underlying PBT £53.0m, up 11.6%

- Free cash flow £32.6m, up 19.8%

Strategic targets progressing:

- Smiths News: 53% of revenues secured, £800m per annum,

£6.2bn total to 2019 and beyond

- Bertrams: diversifying sales mix, international sales +30.2%, digital sales +38.0%, Wordery annualised sales of £15m

- The Consortium: delivering above expected acquisition returns, pro forma(7) profits +15.3%, new management team in place

- Group: 29% of profits outside of newspaper and magazine wholesaling,

on track to achieve 50% by 2016

Strong shareholder returns:

- Underlying EPS of 22.4p, up 12.6%

- Final dividend of 6.3p, making a full year dividend of 9.3p, up 8.1%

Mark Cashmore, Group Chief Executive commented:

"We continue to make good progress against our medium term strategic objectives. We have grown Group revenue and increased profits in all four of our divisions with 29% of profit now coming from outside newspaper and magazine wholesaling, up from 24% in 2012.

Looking ahead, we remain focussed on achieving 50% of profits outside of newspapers and magazines by 2016 and believe our ability to generate significant free cash will support a progressive dividend policy."

Companies mentioned