Smiths News has suffered a drop in full-year revenues of more than 5%, as newspaper and magazine sales continue to fall.
However, while group sales dropped from £1.8bn to £1.7bn in the year to 31 August, pre-tax profits rose 10% to £38.6m.
“Operational efficiency underpins this result, having exceeded our three-year cost savings target of £20m in one year,” said chief executive Mark Cashmore.
Newspaper like-for-like sales fell 2.5% during the period. That represented an improvement on the previous year, when the decline was more than 4%, with declining volumes partially offset by cover price increases.
Core weekly and monthly magazine like-for-like sales were down 6.7%.
Cashmore insisted the figures were in line with the company’s strategy, adding: “We are driving base business revenues, having successfully acquired Dawson Holdings, giving greater access to international and digital books markets.”
Smiths stands up for carriage charge hike (2 July 2011)
Smiths News seals buyout of Dawson books business (7 June 2011)
Smiths News hunts takeover targets to diversify business (13 April 2011)