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Connect Group warns trading below expectations as Tuffnells turnaround drags on performance

The group also said a sale and leaseback deal for 16 Tuffnells properties was "unlikely" to conclude by year-end, depriving it of £35mln

Connect Group - Connect Group warns trading below expectations as Tuffnells turnaround drags on performance
Tuffnells specialises in irregular parcels and freight

News wholesaler and parcels delivery firm Connect Group PLC (LON:CNCT) has warned trading in its second half is “slightly below” market expectations.

The company said in a brief trading update on Tuesday that a strong performance in its Smiths News arm had only partially offset a “slower turnaround” at its Tuffnells business, which handles irregular parcels and freight.

The group also said that as a result of “current market conditions and outlook” proposals for the sale and leaseback of 16 properties in the Tuffnells estate had failed to meet its expectations and as a result, a deal was “unlikely” to conclude a deal before the end of its current financial year.

The delay will deprive Connect of around £35mln in net proceeds which it is expected to gain from the sale while also keeping its net debt flat at £77.5mln.

Connect’s shares tumbled 5.9% to 35.4p in early deals.

Quick facts: Connect Group

Price: 30.4 GBX

LSE:CNCT
Market: LSE
Market Cap: £75.3 m
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