In an update released yesterday (20 January), the publisher of newspapers including the Mirror, Express, Daily Record and Daily Star noted that market expectations compiled by the company are an average of analyst published forecasts, and the consensus adjusted operating profit for FY24 was £97.8m.
Despite the optimistic outlook, the business also said that as part of the due diligence to prepare its West Ferry Printers Pension Scheme buyout, “a historical error” was discovered resulting in an estimated £5m additional funding requirement, which Reach said it expected to pay in 2025.
The West Ferry Printers Pension Scheme was a legacy scheme inherited in Reach’s 2018 acquisition of Express Newspapers.
“We have reviewed our other schemes for the same error, and we have not identified any material items,” the business stated.
“This is unrelated to the 2022 triennial pension valuations for our remaining schemes which remain unchanged.”
The company meanwhile said it has completed the refinancing of its banking facilities. The facility comprises a £145m Revolving Credit Facility (RCF), with a four-year maturity to December 2028 including an option to extend by up to one year.
The RCF also includes a £72.5m uncommitted accordion facility, Reach added. The financial covenants are unchanged.
Reach is scheduled to report its full-year results on 4 March 2025.
In October, Reach said its print revenue dropped by 3.9% year-on-year in its Q3 period – although print advertising revenue continued to outperform volume declines. Digital revenue grew by 2.5% over the quarter, however, as a result of strong digital trading. Overall group revenue was down 2.5% in that period.
Following the release of the Q4 trading update yesterday, Reach’s shares jumped by around 25% to over 90p. The share price had since dropped back to 86.50p at the time of writing just before lunchtime today (52-week high: 112.80p; low: 58.47p).
