Shares in Reach PLC (LON:RCH) zipped higher on Monday morning after the Daily Mirror owner’s annual profits came in ahead of forecasts.
The publisher said back in December that its 2018 results would be “marginally” better than expected, with its performance boosted by the acquisition of the Daily Express and Daily Star titles earlier in the year.
READ: Reach expects 2018 results to be “marginally ahead” of expectations
That led to the handful of analysts which cover the stock to lift their forecasts for adjusted operating profit to around £140.3mln for the year ended 31 December.
But Reach surprised the market when it posted an adjusted operating profit of £145.6mln this morning – a 16.8% year-on-year rise.
Revenue climbed by a similar percentage to £723.9mln (2017: £623.2mln). Excluding the impact of the Express & Star acquisition, like-for-like revenue fell almost 7%.
“I am pleased with the performance we have delivered in 2018 and encouraged by the stronger finish to the year,” said chief executive Simon Fox.
“We have begun 2019 in a strong financial position with good momentum on the integration of Express & Star and with clear plans for digital growth.”
Reach shares rose 3.8% to 59.6p on Monday morning.