(Alliance News) - Smiths News PLC on Wednesday said it continued to progress with its growth strategy as it reported a higher annual profit.
The Swindon, England-based newspaper and magazine distributor said pretax profit in the financial year that ended on August 26 rose 14% to GBP31.8 million from GBP27.9 million a year prior.
Revenue grew a mild 0.2% to GBP1.091 billion from GBP1.089 billion. "By accelerating our contract renewals, we have secured favourable agreements representing 65% of our current revenues through to at least 2029," the firm said.
The company declared an unchanged dividend of 4.15 pence per share.
Smiths News cited uncertainty in the wider economy and continued inflation, but emphasised that it performed well as it remained focused on its strategic priorities.
It said: "We have exceeded market expectations for the full year by ensuring the benefit of stronger revenue was able to flow through to profitability. While top line sales were boosted by the FIFA World Cup, the royal succession and sustained price rises above historic norms, our performance was also driven by the mitigation of volume declines and inflationary impacts as a result of management actions and our ongoing programme of operational cost savings across the network."
Looking ahead, Smiths News said cost reduction initiatives are "well underway" as it continues to make progress with its growth strategy.
Smiths News shares fell 3.1% to 47.38 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News reporter
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Smiths News (SNWS)