Connect Group Revenue Falls, cites weaker news distribution, media sales
Source - SMW
Connect Group PLC, a UK based specialist distributor, reported revenue for continuing operations decreased by 3.5% year to date to £564.5 million and said it expects full year adjusted profit before tax for the continuing operations to be in the range of £42 million to £45 million.
Total revenue in news distribution and media fell by 4.1% to £500.4 million year-to-date from £521.7 million reported for the full year of 2017, in line with the company's expectations. The subdued revenue in news distribution and media offset revenue growth in Mixed Freight and Pass My Parcel.
'Volumes in Pass My Parcel of 1.3 million units have grown 347% year to date, and we start the new calendar year with a run rate up 740% on January 2017,' Connect said in a trading update. 'Year to date revenue of £2.5m is up 222%, representing strong growth.'
The company warned, however, that 'ongoing delays to the implementation of new contracts and the roll out of new B2B services means that the margin mix is unlikely to improve in the near term,' and added that it does not expect 'full year losses from PMP to reduce from those incurred in the full year 2017.'
Mixed freight external revenue rose 1.3% to £63.9 million compared to full-year 2017 revenue of £63.1 million while the volume of consignments rose by 3.6% on last year, Connect said.
The company also said it revisited its time frames for realising initial savings: 'Our £15 million targeted efficiencies over two years, we now expect the weighting to be greater in year two of the plan.
The Group will announce its interim results for the six months ending 28 February 2018 on 1 May 2018.
At 9:41am: (LON:CNCT) Connect Group PLC share price was -29.15p at 76.45p