22 October 2020

 

Daily Mail and General Trust plc ('DMGT')

Trading update for the Full Year to 30 September 2020

 

Full Year 2020 profit expected to be above current market forecasts¹

 

DMGT today issues an update on its results for the Full Year ended 30 September 2020.  DMGT formally suspended guidance in March 2020, during the onset of the Covid-19 pandemic.

 

DMGT notes the unusually wide range of current market expectations¹.  At this stage, the Board estimates the Group's adjusted revenue will be in the range of £1,205-1,215m and adjusted operating profit in the range of £85-90m.  The performance was achieved without any government support, including furlough schemes.  The effective tax rate for the year is expected to be less than 30%². 

 

The performance has been helped by stronger than expected September profit from:

• Consumer Media, which benefitted from advertising revenue being above expectations; and
• Landmark, our UK Property Information business, which benefitted from an increase in property market transactions.  This was aided by pent up demand, following some easing of lockdown restrictions, and the temporary reduction in UK stamp duty. 

 

The severity and duration of the Covid-19 pandemic and its economic repercussions remain uncertain as we enter the new financial year.  The Board has limited visibility of the impact on DMGT's UK Property Information, Events & Exhibitions and Consumer Media businesses for FY 2021 and remains cautious.

 

The FY 2020 financial statements are in the process of being prepared and remain subject to audit.  DMGT will release results for the Full Year on 23 November 2020.

 

 

Enquiries

Investors:
Tim Collier, Group CFO	+44 20 3615 2902
Adam Webster, Head of Investor Relations	+44 20 3615 2903
Media: Doug Campbell / Paul Durman, Teneo	+44 20 7260 2700

 

Next trading update

The Group's next scheduled announcement of financial information will be its results for the Full Year ended 30 September 2020, which will be released on 23 November 2020.

 

Market Abuse Regulation

The information communicated in this announcement includes inside information.

 

About DMGT

DMGT manages a portfolio of companies that provide businesses and consumers with compelling information, analysis, insight, events, news and entertainment.  The Group takes a long-term approach to investment and has market-leading positions in consumer media, insurance risk, property information, education technology and events & exhibitions.  In total, DMGT generates revenues of around £1.2bn.

 

Person responsible for arranging the release of this announcement:

Fran Sallas, Company Secretary

+44 20 3615 2904

 

 

Notes

 

1 Current City analyst expectations for DMGT for FY 2020, as published on DMGT's website (www.dmgt.com), are based on ten analysts that have updated their projections since DMGT's Half Year results were announced on 28 May 2020.  Expectations range from £1,168m to £1,275m for revenue, from £59m to £80m for adjusted operating profit, from £37m to £56m for adjusted profit before tax (PBT) and from 10.3p to 19.2p for adjusted basic earnings per share (EPS).  The mean averages of analysts' expectations are £1,222m, £68m, £46m and 13.1p for revenue, adjusted operating profit, adjusted PBT and adjusted EPS respectively. Consensus includes an average of £46m adjusted operating profit from Consumer Media, with a range from £37m to £55m.  It also includes an average of £18m adjusted operating profit from Property Information, with a range from £10m to £33m.

 

Current City analyst expectations for DMGT for FY 2021 range from £46m to £96m for adjusted PBT and from 15.4p to 32.6p for adjusted EPS.

 

Adjusted results are stated before exceptional items, other gains and losses, impairment of goodwill and intangible assets, amortisation of intangible assets arising on business combinations, pension finance credits and fair value adjustments.

 

2 As highlighted in DMGT's Half Year results release on 28 May 2020, the effective tax is affected by the significance of tax-adjusting items relative to the Group's adjusted profit before tax (PBT).  Most notably, the share of unrelieved losses from early-stage associates as a proportion of PBT.  The effective tax rate is now expected to be less than 30%, below current market forecasts, consistent with PBT being higher than current market forecasts.

 

 

This trading update is prepared for and addressed only to the Company's shareholders as a whole and to no other person. The Company, its Directors, employees, agents and advisers accept and assume no liability to any person in respect of this trading update save as would arise under English law.  Statements contained in this trading update are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore facts stated and views expressed may change after that date.

 

This document and any materials distributed in connection with it may include forward-looking statements, beliefs, opinions or statements concerning risks and uncertainties, including statements with respect to the Group's business, financial condition and results of operations. Those statements and statements which contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning, reflect the Group's Directors' beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and which may cause results and developments to differ materially from those expressed or implied by those statements and forecasts. No representation is made that any of those statements or forecasts will come to pass or that any forecast results will be achieved. You are cautioned not to place any reliance on such statements or forecasts. Those forward-looking and other statements speak only as at the date of this trading update. The Group undertakes no obligation to release any update of, or revisions to, any forward-looking statements, opinions (which are subject to change without notice) or any other information or statement contained in this trading update. Furthermore, past performance of the Group cannot be relied on as a guide to future performance. 

 

No statement in this document is intended as a profit forecast or a profit estimate and no statement in this document should be interpreted to mean that earnings per DMGT share for the current or future financial years would necessarily match or exceed the historical published earnings per DMGT share.

 

Nothing in this document is intended to constitute an invitation or inducement to engage in investment activity. This document does not constitute or form part of any offer for sale or subscription of, or any solicitation of any offer to purchase or subscribe for, any securities nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. This document does not constitute a recommendation regarding any securities.

 

 

 

Daily Mail and General Trust plc

Northcliffe House, 2 Derry Street,

London, W8 5TT

 

www.dmgt.com

Registered in England and Wales No. 184594