Smiths News Share Discussion Threads

[philanderer] 28/4/2012 00:06

Bertrams promo video on the website with the mighty Cream performing 'I Feel Free'

Marvellous :-)

[edmundshaw] 27/4/2012 18:04

Immediately eps enhancing, and a growth side to the group. Shrewd is a good description.

[beaufort1] 27/4/2012 16:28

Books and papers only half the story. Growth element in new acquisition of distributor of educational supplies - v shrewd.
B1

[jon827] 25/4/2012 16:07

Whotcha guys :) looks like books and news papers aren't dead yet then! Looking get long here on a dip, got to consult the chart to find out where tho!

[hvs] 25/4/2012 15:50

Very cheap by any measure.

Cash flow should improve from here on.

[skinny] 25/4/2012 09:29

Oriel Securities Upgrade Buy TP increased from 80p to 120p

JP Morgan Cazenove reiterates it's Overweight


Still not holding :-(

[felix99] 25/4/2012 09:22

tipped by Tempus apparently

from digital look

Tempus has also analysed newspaper and magazine group Smiths News and yesterday's decision to push into the distribution-to-schools market with the purchase of Hedgelane for up to £38m in cash and shares. The shares trade at five times expected 2012 earnings and yield 9% - "That's the measure of how seriously investors regard the move online of newspapers and magazines," Hosking writes. "Smiths is demonstrating that it can prosper for a few years yet in an environment in which physical sales of newspapers, magazines and books are all declining. Diversification is the long-term answer and the schools foray looks a good bet." Tempus says buy

[this_is_me] 25/4/2012 08:29

Thisw has been one of my largest ho.ldings for a while. I am happy to collect the huge dividend and watch profits grow.

[beaufort1] 24/4/2012 16:39

Nice quiet sensible thread with no timewasters. Have bought in today - cracking good company, great recovery story, huge divi. what's not to like?
B1

[edmundshaw] 24/4/2012 13:09

Still very cheap - forward PE no more than 5 if the mgt projections are right, and forward yield still maybe 9% if the final divi is upped in the same ratio as the interim.

Gven the excellent interims, I cannot see why anyone waiting before would not buy today (I did), but everyone must DTOR of course...

OK I am excited with this one. Please excuse the rampy overtones :-)

[edmundshaw] 24/4/2012 12:59

The Consortium seems a good business buy (again).

Bought from existing facilities on a pro forma EV/EBITDA multiple of 6.3x and 5.5x including annualised synergies.

"Immediately earnings enhancing adding 1.3p or 7% on a pro forma basis to EPS", and "The Consortium is a cash generative business with low investment intensity" and with further opportunities both to extend the new business & make it more efficient as per usual for NWS.

NWS management have done it again! :-)

[edmundshaw] 24/4/2012 11:39

Must say I missed my target for adding too Skinny, but seeing the results I thought it OK to ignore my target of 86-88p and add anyway.

Still very cheap IMO.

[cockneyrebel] 24/4/2012 11:34

Has just broken out though a strong resistance level here this am.

CR

[skinny] 24/4/2012 08:43

Having sold in February - I've been watching and waiting to buy back, it looks like I may have missed it this time!

[edmundshaw] 24/4/2012 08:37

Still in the dip from 97p - just! :-)

Added some this morning. Yield nearly 9% for a cheap, growing company. Hard to resist!

[cestnous] 24/4/2012 08:34

Been watching for a while for a dip that didn't come.Bought For my ISA as soon as I read the news. Looks like we can expect growth now as well as an excellent divi.

Edit; In profit already. That makes a nice change.

[this_is_me] 24/4/2012 07:49

Very happy to hold after these results.

[skinny] 24/4/2012 07:39

Operating highlights:
· Delivered another strong financial performance
o Underlying PBT of £21.5m, up 12.0%
o Generated free cash flow of £6.0m
· Continued resilience in the core business
o Smiths News underlying operating profit up 5%
o Bertram Group operating profit up 33% benefiting from Dawson's initial contribution
· Dawson integration delivering synergy and cost savings targets
o Profitability of acquired businesses on track
o On track to deliver £2.5m integration efficiencies in FY2012
· Strong shareholder returns:
o Underlying EPS(2) of 8.9p, up 14%
o Declared interim dividend of 2.8p up 8%
· On track to meet full year market expectations
· Acquisition of The Consortium for enterprise value ("EV") of £44m
o A leading distributor of education and care products
o Adding £64m of revenue and £7.0m EBITDA to the Group
o Immediately earnings enhancing.

[edmundshaw] 24/4/2012 07:38

Yes, very pleased here.

Free cash flow rocketing to £6.0m from £2.5m. More integration efficiencies to come, too.

[lord gnome] 24/4/2012 07:36

I agree entirely. Whilst the acquisition is not exactly a game changer for NWS, it does make a lot of sense as a 'bolt-on' drawing upon NWS core distribution skills. Well priced and earnings accretive.Perhaps the only negative is the additional debt, but I think NWS is generating more than enough cash to service it. I am already wondering just what operational synergies might be achieved given our network of regional distribution centres and delivery systems. I like it.

[18bt] 24/4/2012 07:12

Interim results strong and a well priced acquisition in a growth sector. Of course the dividend was raised as well. great stuff

[n3tleylucas] 21/4/2012 06:00

that's just in case I forget it ... lol ... bizarrely good ... and of good use :)

[n3tleylucas] 21/4/2012 05:58

sobering up now ... better sort me Yahoo! team out now! ... lol

[jack ladd] 20/4/2012 23:13

I'm with Ron Jeremy on that!