Connect Group warned Friday that full year trading would fall short of expectation amid challenging conditions in the parcel freight market, while the World Cup buzz failed to boost magazine sales at its Smiths News division.
The group expects its full year trading performance to be below expectations as performance continued to be weighed down by a continuation of the challenging trends experienced throughout the year, the company said.
Newspapers sales were in line with management forecasts, but magazine sales weakening a little further in the final quarter as the World Cup delivered lower sales of stickers and albums than in previous tournaments, though was consistent with revised expectations, the company said.
The company said Tuffnells' second half performance is expected to be worse than that in the first of the year amid ongoing challenging in the parcel freight market.
The downbeat performance was exacerbated additional operating losses by the swifter than anticipated exit from onerous contracts as the group's closed its 'Pass My Parcel' divisions.
The group said it would set aside capital next year to complete a further organisation restructure that was already underway as part of a plan to improved process and efficiency across both the operating businesses and supporting central services.
At 9:21am: (LON:CNCT) Connect Group PLC share price was -2.8p at 34.2p