Interim Management Statement 2014

Tuesday 8th July 2014

Connect Group PLC (“the Group”) a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today issuing its Interim Management Statement covering the 44 week period to 5 July 2014.

Total Group revenues increased 0.2% year on year and performance for the Group remains broadly in line with current market expectations for the full year.
The performance of each division is as follows;

  • Connect News & Media; News revenues increased by 0.1% driven by strong World Cup sticker sales. Like for like revenues decreased by 2.1% with both newspaper and magazine performance continuing at recent robust run rates. Consequently, full year performance will be above previous expectations. Media revenues decreased by 3.2% and on a like for like basis by 2.8%.
  • Connect Books; revenues increased by 2.6% due to recent acquisitions and by the continued strong performance of Wordery. Like for like revenues decreased by 3.2% reflecting increased pressure across other channels. Recent recovery actions expected to reduce costs and increase margins are being delivered, although as a result of continued sales pressure particularly in Library services and Academic markets we expect full year performance will be below previous expectations.
  • Connect Education & Care; revenues increased by 2.2% and on a like for like basis by 2.2%. Core revenues were up 4.4% on a like for like basis with the Education and Early Years channels performing more strongly than the smaller Care channel. Momentum is building for the key peak trading period which has started as planned and full year performance remains in line with previous expectations.

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 bank facilities.

The Group will announce its preliminary results for the twelve months ending 31 August 2014 on 15 October 2014.

Note: The following definitions apply consistently throughout Connect Group PLC results
(1) Like for like revenues exclude the impact of gains and losses, including contracts, new business and acquisitions reported in the current or prior year total sales.

Enquiries:

Connect Group PLC    
Mark Cashmore, Group Chief Executive    Tel: 01793 563641
Nick Gresham, Chief Financial Officer

Buchanan
Jeremy Garcia / Gabriella Clinkard   Tel: 020 74665000

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Press Contact

For all enquiries concerning press information, please contact:

Kerrie Colford
Group Communications & PR Manager
Phone: 01793 563516
Email: media@connectgroupplc.com

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