In preliminary results for the year ended 31 December 2024 group sales slipped by 5.3% to £538.6m, while operating profit was up 6% to £102.3m.
Reach said print revenues of £406.7m, down 7.3% or 6% on a like-for-like basis, had “importantly outperformed market trends”.
Contract printing was down 14.5% at £17.3m.
Reach Printing Services has print sites at Watford, Oldham and Cardonald near Glasgow.
The group’s digital revenues were back in growth and nudged up 2.1% to £130m. However, page views were down 14% although Q4 was brighter with a 6% increase.
Headcount was down 13% as part of ongoing cost cutting measures.
Euros and Taylor Swift Eras tour boost print sales
“Our print business performed particularly well during big events this year, including the Euros and Taylor Swift Eras tour. The teams took this opportunity to maximise print sales with popular souvenir specials, maximising valuable advertising opportunities,” the group stated.
“We also continue to provide our print customers with value for money, balancing carefully managed cover price increases with enhanced content and partner offers, for example a recurring offering from the National Trust which remains very popular.”
The group said that print advertising continued to be a “valuable and effective channel”, especially for retailers such as Tesco and Boots.
Print advertising was down 13.5%, but outperformed the 17% decline in volumes.
Reach said it had reduced overall newsprint costs by nearly 30% to £42.2m, mainly due to a 17% volume decline but also by negotiating longer-term contracts for materials. This has also provided stability for its cost base.
Mullen described the overall 2024 performance as “robust”.
“While we have seen a challenging macro environment and the ongoing dominance of the tech platforms, our strategy, and the plans we put in place for the year, have continued to create value and further our transition to a more resilient digital business,” Mullen said.
“We have continued to expertly manage print, and our early but necessary actions on costs meant we exceeded our cost-saving target of 5-6% and delivered a strong operating margin of 19%.”
Beauty boost
The group, which also publishes OK! Magazine, said its e-commerce business had grown strongly, with sales up nearly 40%.
The OK! Beauty Box has more than 15,000 monthly subscribers alongside ad hoc purchasers of special edition boxes, with sales up 42% year-on-year.
The OK! Beauty advent calendar also sold out before December.
Payments of £9.1m were made during the year to resolve civil claims related to the historical phone hacking scandal. A provision of £9.1m remains with the timetable for resolution likely to extend into 2026.
Outlook
Regarding the outlook, CFO Darren Fisher commented: “We remain alive to the uncertain macro environment and dynamic media backdrop”, but the group was confident about delivering on current market expectations in 2025.
He said the changes to National Insurance contributions would increase labour costs by approximately 2% on an annualised basis.
“The broader impact of these policy changes on the macro environment including consumer sentiment and discretionary spend such as advertising is less clear.”
Commitments for this year include an additional £5m payment into the West Ferry Printers Pension Scheme.
Reach’s share price slipped from 86.99p to 79.10p in early trading, but then recovered to 88.16p (52-week high: 112.80p, low: 58.47p).
