Connect Group PLC (LON:CNCT) upped its final dividend as it said recent heavy restructuring would see it return to growth in 2018.
Connect owns Smith News, the UK’s largest magazine and newspaper distributor, as well as airline content specialist Dawson Media Direct and logistics group Tuffnells.
Connect said in a statement revenue in the year to August fell 3% to £1.59bn, while profits dipped by a similar amount to £34.2mln.
News distribution had been resilient despite the ongoing switch to digital content, which offset a weaker performance at Tuffnells and in the fledgling Click & Collect business.
Integration
Connect's plan now is to integrate Tuffnells with Smith News to streamline both operations and save about £15mln per year.
The education & care business was sold for cash proceeds of £58.2mln during the year, while a sale of its books division is expected in the current twelve months.
As a result, debt fell to £82mln from £142mln.
The dividend for the year is 9.8p, a 3% rise, which puts the shares on a yield of 10.3% at 95p.