REG - National World PLC - Trading update

National WorldAnnouncement

30/05/2024 07:00

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RNS Number : 3608Q  National World PLC  30 May 2024

National World plc

 

("National World," the "Company" or the "Group")

 

 

Trading update for the 21 week period to 25 May 2024

 

 

National World plc issues the following trading update for the 21 week period
to 25 May 2024, ("the period") ahead of its Annual General meeting on 30 May
2024.

 

Highlights

                      May '24  May '23  YOY

                      YTD      YTD
                      £m       £m

 Total Group revenue  39.5     33.6     +18%

 Digital              8.2      7.3      +11%
 Circulation          13.5     12.1     +12%
 Print advertising    14.0     11.5     +22%
 Events               2.0      0.9      +120%
 Other^               1.8      1.8      +2%

 

^ - Other revenue comprises third party editorial funding and non-advertising
related print revenues.

 

Chairman, David Montgomery, said:

"National World continues to make strong progress on three fronts - growing
revenue in the face of a general sector decline, driving organic development
with innovative product and platform launches and finally through a targeted
acquisitions strategy.

 

"Our transition towards full automation of content production processes has
accelerated in the first half. There is greater focus on pivoting the
workforce towards highly monetisable specialist content across all platforms,
particularly higher yielding video, business information and events.
Consequently, we are differentiating the Company as a leading innovator with a
continually expanding reach.

 

"Subject to shareholder approval, we confirm the intention to pay an increased
final dividend of 0.55p on 10 July."

 

Trading

Total revenue for the period has improved by 18% year-on-year, benefiting from
both growth in print advertising and acquisitions completed in 2023 that were
not in most of the comparative period. Total revenue was up 19% in Q1,
followed by 16% growth across April and May.

 

Digital revenue is trending at +11% year-on-year for the period, despite the
general audience malaise across the sector.

 

Print advertising revenue growth of 20% in the first quarter has continued in
April and May, with signs of improvement in certain areas of the advertising
market and helped by acquisitions.

 

Events revenue growth of 120% includes Insider Media events revenue, which the
Group acquired in April 2023.

 

Acquisitions

Management continues to look at potential value-creating acquisitions that
align with the Group's strategy as it repositions the business towards its new
operating model, underpinned by greater productivity in specialist and
original content.

 

Financial position

The Group maintains a strong financial position with a cash balance of at
least £10.0 million at the end of May and no debt (May '23: £24.4
million).

 

The Board has recommended the payment of a final dividend of 0.55p per share
in respect of the 2023 financial performance. If approved the dividend will be
paid on 10 July 2024 to shareholders on the register at 7 June 2024. Payment
of the final dividend will cost the Company approximately £1.5 million.

 

Outlook

The Company remains confident that investment in and development of its
products across all platforms, together with the adoption of its new operating
model and ongoing cost initiatives, will continue to support profitability and
cash flow. Management expects performance for the full year to be in line with
the Company's expectations.

 

- Ends -

 

For the purposes of UK MAR the person responsible for arranging for the
release of this announcement on behalf of National World is David Montgomery,
Executive Chairman.

 

Enquiries:

 

 National World plc

 David Montgomery                                          c/o Montfort Communications
 Dowgate Capital Limited - Financial Advisers and Brokers  +44 (0)20 3903 7715

 David Poutney

 James Serjeant
 Montfort Communications

 Nick Miles                                                +44 (0)77 3970 1634

 Olly Scott                                                +44 (0)78 1234 5205

 

Forward-looking statements

 

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will", or "should" or, in each case, their negative or
other variations or comparable terminology. These forward-looking statements
include matters that are not historical facts. They appear in a number of
places throughout this announcement and include statements regarding the
directors' current intentions, beliefs or expectations concerning, among other
things, the Company's results of operations, financial condition, liquidity,
prospects, growth, strategies and the Company's markets. By their nature,
forward-looking statements involve risk and uncertainty because they relate to
future events and circumstances. Actual results and developments could differ
materially from those expressed or implied by the forward-looking statements.
Forward-looking statements may and often do differ materially from actual
results. Any forward-looking statements in this announcement are based on
certain factors and assumptions, including the directors' current view with
respect to future events and are subject to risks relating to future events
and other risks, uncertainties and assumptions relating to the Company's
operations, results of operations, growth strategy and liquidity. Whilst the
directors consider these assumptions to be reasonable based upon information
currently available, they may prove to be incorrect. Save as required by
applicable law or regulation, the Company undertakes no obligation to release
publicly the results of any revisions to any forward-looking statements in
this announcement that may occur due to any change in the directors'
expectations or to reflect events or circumstances after the date of this
announcement.

 

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