Updates

Reach - Operating margins soar 4% to 16.8%

September 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

England’s run to the Euro finals, the UK General Election and Taylor Swift’s Eras tour galvanised trading for newspaper group Reach in the first half. Although revenue fell 5% to £265m (digital -1.3%, print -6.1%), digital revenues improved in Q2 by 6.7%. Aided by cost reduction ahead of the 5-6% previously guided (14% lower headcount, newsprint down a third) operating profit rose 23% to £44.5m. Impressively, operating margins jumped from 12.9% to 16.8%, while net debt was lower than expected at £12.3m thanks to two property disposals and favourable working capital movements. Some encouraging trends to note: first, high yielding data-driven revenues increased 13% year-on-year in Q2 and now represent 45% of digital revenue; second ...

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Cranswick - Shares heading towards £50!

Bloomsbury - Shares soar 250p in just six weeks!

Reach - Deutsche says “forecast risk firmly to the upside” (December 2024)

Reach (June 2024)

Reach - Shares bounce 22% after results (April 2024)

Reach (December 2023)

Reach (September 2023)

Reach - Comparables to get easier in H2 (June 2023)

Reach - Data driven revenues up 56% (April 2023)

Reach (February 2023)

Reach - Q3 shows impressive print sales resilience (November 2022)

Reach - Plus products now over 30% of Digital (September 2022)

Reach - CEO and chairman buy shares (June 2022)

Reach - High margin digital side could be 50% turnover by FY’25 (April 2022)

Reach - Recruits another 400 writers (January 2022)

Reach - Gain in two months: 69%! (September 2021)

Reach - Direct advertising set for exponential growth; DIRT CHEAP on PE of 6.5 (July 2021)

Reach - Newspaper group could double profits through digital advertising explosion (February 2021)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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