In the statement for the year ended 30 December 2023, released today (18 January), the publisher said its full-year revenue is expected to be “not less than” £88m (compared to £84.1m in 2022), while its adjusted EBITDA for 2023 is expected to exceed £9m and will be above expectations.
The company said it has a strong, debt-free balance sheet with a cash balance of £10.7m as at 30 December 2023.
Despite the digital revenue growth, which includes growth of 20% in the second half of the year benefitting from acquisitions, stronger yields, and increased video advertising, print revenue slipped by 2% compared with the previous year.
Print advertising revenue fell by 1%, with circulation revenue dropping by 3%, reflecting the continued subdued consumer confidence in the UK economy because of higher inflation and interest rates.
Events revenue will be reported separately in the 2023 annual results, National World said, having previously been reported across both print advertising and other print revenues.
The group said it has managed costs carefully throughout the year enabling it to support digital investments, mitigate the impact of inflationary cost pressures, and also moderate the decline of heritage print revenue.
Targeted annualised cost savings of £6m were achieved. Non-recurring costs for the period were £5.5m, including £3.9m restructuring costs and £1.6m incurred on advisory costs for completed and potential acquisitions.
National World chairman David Montgomery said: “In 2023 the group completed seven acquisitions of iconic and premium brands strengthening our portfolio, particularly in the events and business information sector.
“Our greater scale, combined with significant investment in innovation and automation, underpins our accelerating transition to a multi-platform content business, focused on creative and expert talent.
"We continue to re-train and re-equip both editorial and commercial staff to serve all platforms, including TV and video. Our sector consolidation of heritage brands has strengthened our expertise both geographically and by content genre, helping to distinguish us in news provision but also in the areas of information and entertainment.
“The short-term augmentation of revenues will help propel a new sustainable model that will be evidenced during 2024 with the launch of a number of key initiatives now at an advanced stage of development.
“Given our scalable infrastructure the company will continue to seek to take advantage of further acquisitions that release significant synergies. Absent that, the 2024 trajectory is for revenues in excess of £100m and an increased EBITDA margin.”
For the seven acquisitions completed in the period, National World paid a total consideration of £14.4m, (£13m consideration net of cash acquired) funded from its existing cash resources. These contributed revenues of £10.6m and adjusted EBITDA of £1.7m in the period, with the bulk of this flowing in the second half.
The board is expecting to recommend a final dividend in conjunction with the release of its audited results for the year ended 30 December 2023 on 21 March 2024.
For 2024, it is expecting to deliver revenues in excess of £100m and improved EBITDA margin.
The company’s management said it continues to pursue acquisition opportunities, primarily targeting businesses that will enhance the group’s digital capability.
National World’s share price was up by nearly 14% on yesterday’s close to 17.64p at the time of writing at lunchtime today.
