Smith News PLC said it expects to face a slightly lower charge than originally expected from the administration of convenience store group McColl’s.
In the light of the latest guidance from the administrator, newspaper wholesaler Smiths said the cost will be between £3.4mln and £4.5mln compared to the £5.6mln for which it originally filed.
McColl’s was rescued from the administrator by Morrisons, one of its major customers, in a pre-pack deal three weeks ago and Smiths said it continues to supply the convenience chain under its new ownership on improved payment terms.
Smiths, the UK’s largest newspaper and magazine wholesaler, added it intends to pay a planned interim dividend of 1.4p per share with trading elsewhere as expected with strong net debt reduction and decent cash flow thanks to the new arrangements with Morrisons.
As a result, it said it expects to recommend the maximum final dividend possible for the 2022 fiscal year under the limits of its current banking facilities.