Newspaper and online publisher Reach (LON: RCH) is the best performer in the FTSE Small Cap index with a 23.9% jump to 89.2p. That more than claws back the previous loss this year. Fourth quarter trading was stronger than anticipated.
The Daily Mirror owner benefited from a stronger digital advertising market. Black Friday was positive this year. Fourth quarter growth was around 7% and that improved the second half growth rate to 5%. Digital is still less than one-quarter of revenues, but that will change as it continues to grow and print revenues decline.
Newspaper trading was in line with expectations. There have also been additional cost savings. Net debt is £22m.
There will be a one-off pension cost of £5m in 2025 due to a past error. There has been refinancing with a £145m revolving credit facility lasting four years.
Panmure Liberum has increased its 2024 pre-tax profit forecast from £94.6m to £98.1m. However, it is maintaining its 2025 figure at £93.2m, which reflects the added costs of the National Insurance rises. The dividend is expected to continue at 7.34p/share. The shares are trading on four times prospective earnings and yield 8.2%.