Connect Share Discussion Threads

[blueliner] 08/10/2017 08:53

CNCT featured in current Master Investor Magazine [free] under High Yield Stock Bargains written by John Kingham. I receive the pdf link via email.

[speedsgh] 06/10/2017 16:11

100p just about holding support at the mo, but if that goes, gawd knows! The chart is ugly.

[nick rubens] 06/10/2017 15:52

Full year results October 26th. Market seems apprehensive of them at the moment.

[edmundshaw] 22/9/2017 09:26

Doesn't look like an exit, more a struggling on.

I have had a feeling (hope?) that Connect's long experience would put them in a better position than some of the competition. We shall see...

[neilyb675] 22/9/2017 09:16

Essential restructuring ✔

[fenners66] 22/9/2017 08:56

Marked up this morning - on the back of the troubles at DX group?
They are running out of cash - sale and leaseback , emergency loan from a shareholder, declining profitability .... a competitor to exit the market?

[edmundshaw] 10/8/2017 13:57

Helpful to see the wider picture too, kazoom.

Quarto by the way is a different kind of animal. Also had a change of very long term and successful management not too long ago (I had it on my watch list for ages, never bought).

[kazoom] 10/8/2017 09:17

Why do we need a read across here?
3 weeks ago we were told OUR books division was trading up 12% and renewed a framework agreement.

That not positive enough for books?

[fenners66] 10/8/2017 09:03

But the reverse side of that coin was Quarto results the other day that said they were sinking fast - also a book publisher.

[edmundshaw] 10/8/2017 08:06

From St Ives results today:

"Within our Books business, revenue for the second half was approximately 8% ahead of the equivalent period last year".

Any read-across would be good news.

[edmundshaw] 31/7/2017 22:33

News division's inevitable decline and also its costs have been controlled very well, from what we are told each year. Happy to see JB extending his responsibilities if he can also extend his success!

[skinny] 31/7/2017 13:02

finnCap Buy 111.88 187.00 154.00 Reiterates

[skinny] 31/7/2017 13:01

Connect Group PLC is pleased to announce that Jonathan Bunting, previously Managing Director of the Group's News & Media division, will assume the role of Chief Operating Officer, with responsibility for operations across the Smiths News and Tuffnells businesses. This announcement follows the Group's recent confirmation of its strategy to bring together its News & Media and Parcel Freight divisions, together with supporting Group functions, into one integrated structure. The change will take effect from 1 September 2017.

[edmundshaw] 25/7/2017 10:00

Retail or professional investor is an irrelevant distinction. Either this will produce returns or it will not. Each individual (pro or retail) will have to decide for him/herself.

[morgank] 25/7/2017 08:40

I'm happy to Hold @ 9% yield if it can be maintained

[morgank] 25/7/2017 08:38

Today - JPMorgan Cazenove Overweight target 144p

[speedsgh] 25/7/2017 08:27

Connect, which is the former Smiths News papers and magazines distributor, has been in a state of transition for some years and is taking a long time getting there. The latest change is the sale of education and care, a potential growth market that never really worked out, for a decent return last month.

It retains the Smiths News operation, which is in long-term decline, with sales down another 4 per cent in the 45 weeks to July 15. The question is how fast this can be integrated into Parcel Freight, which delivers unsually shaped packages, and how long it will take Pass My Parcel, the “click and connect” delivery service for the likes of Amazon and Asos, to get into profit.

The shares have fallen from 150p at the start of the year to 107¾p, up 2½p, last night, not helped by the departure of a long-term investor last month. They have a number of retail investors because of the good yield. That fall in the share price has raised this to above 9 per cent; the company insists that this can be maintained. They are attractive to those seeking yield, then, although they may take time to rise again.

MY ADVICE Hold
WHY Yield is good, but progress still looks slow

[skinny] 25/7/2017 08:05

JP Morgan Cazenove Overweight 116.25 152.00 144.00 Reiterates

[skinny] 24/7/2017 09:16

Peel Hunt Add 106.00 135.00 135.00 Reiterates

[morgank] 24/7/2017 08:35

I bought late Friday, I think the low has been reached and there seems to be good buying this morning

[fenners66] 24/7/2017 08:21

Well for better or worse I have got some more this morning , no skeletons released from the cupboard , this time....

[skinny] 24/7/2017 08:11

finnCap Buy 105.50 187.00 187.00 Reiterates

[skinny] 24/7/2017 07:47

"There has been no change in the underlying financial condition of the Group since the interim financial results announcement on 25 April 2017."

[edmundshaw] 24/7/2017 07:47

Considering recent price falls to a silly rating, and with these results are pretty much in line with expectations, this update should surely reassure Mr Market (assuming our seller has finished).

I am hopeful of some bounce. With no reason to see a change in dividend policy, surely a 9% yield is too much. If the dividend remains and the yield is too high there, is only one way to correct the yield - a price rise.

[skinny] 24/7/2017 07:46

The link :-

Connect Group PLC is today issuing its Trading Update covering the 45 week period to 15 July 2017.

Overall performance continues to be in line with expectations with a stronger second half from News & Media offsetting softer trading in Parcel Freight.

Total Group revenue for continuing operations of £1,497.5m (2016: £1,517.6m) has decreased by 1.3% year to date, a consequence of the anticipated decline of newspaper and magazine sales, offsetting revenue growth in our other markets.

The sale of the Group's Education & Care division to RM plc completed on 30 June 2017, for a cash consideration of £56.5m, delivering an Internal Rate of Return of 10% over the lifetime of our ownership. The disposal is a milestone in the Group's strategy to focus future investment on core operations, facilitating the transition to becoming an integrated specialist distribution business.

The Group has also maintained progress with key initiatives in its core markets:

News & Media

Sales in Smiths News remain in line with our strategic forecast; total revenue of £1,125.8m (2016: £1,173.7m) decreased by 4.1% with newspapers continuing to perform more strongly than magazines. Media total revenue of £24.7m (2016: £23.2m) has increased by 6.1%. Planned efficiencies of £5m in the year will be fully delivered, and a robust operational performance with ongoing cost control, is contributing to a strong second half. The new regional hub at Hemel Hempstead is operational and making good progress.

Parcel Freight

Total revenue of £157.3m (2016: £151.3m) has increased by 4.0% driven largely by price increases. Despite a successful spring peak for consignment volumes, market competition is limiting revenue growth, and the efficiency benefits from our investments in the business are coming through more slowly than anticipated. As a consequence, overall performance has followed the same trend as the first half of the year.

Pass My Parcel

Pass My Parcel's volume run rate has continued to increase, driven by a combination of core growth, new client partnerships and the development of additional services. Total parcels handled in June 2017 averaged 23,400 per week, up 149% on the same period last year. Customer service and operational performance has remained strong throughout.

Good progress is being made in leveraging the Group's capabilities in B2B final mile and early-morning delivery, attracting a growing client pipeline with a range of service propositions. We expect our contract with UK Mail to handle returns and failed household deliveries to commence in 2018, following the implementation of supporting IT.

Books

Total revenue of £189.7m (2016: £169.4m) has increased 12.0% with continued strong sales in UK Wholesale and Wordery, offset by weaker sales in Libraries. The recent announcement of the Joint National Consortia framework agreement saw Dawson Books re-listed as a leading supplier, a strong result reflecting the quality of our offer; the framework agreement takes effect from 1 August 2017 for a minimum of two years. The first phase of new automated packing technology is now installed at the Norwich hub and contributing to efficiency savings that will help to mitigate future increases in the National Living Wage.

Integration

The Group's strategy for integration is focused on the delivery of cost synergies between News & Media and Parcel Freight, group overhead and structure, as well as providing a broader customer proposition leveraging the combined strengths of our two specialist distribution networks, creating additional growth opportunities. We will update the market on progress at the preliminary results.


There has been no change in the underlying financial condition of the Group since the interim financial results announcement on 25 April 2017.

The Group will announce its preliminary results for the full year ending 31 August on 26 October 2017.