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Connect Group first-half sales and profits slide
Specialist distributor Connect Group saw pre-tax profits drop 30% across the first half of its trading year, as the firm was dragged down by a combination of cost and margin pressures in a "period of challenging trading".
Pre-tax profits for the six months leading to 28 February dropped to £15.1m as revenues retreated 3.4% to £766.5m.
A "challenging period" for Tuffnells on revenue and costs, with profit further impacted by operational inefficiencies, offset much of the good news reported over at Smiths News.
However, after reducing net debt 44.2% to £83.6m, the Swindon-based group maintained its interim dividend per share of 3.1p. Earnings per share fell 28.6% to 5p.
Mark Cashmore, chief executive officer, said, "In a period of challenging trading, our profit was impacted by a combination of cost and margin pressures compounded by the extent of change across the group. The priorities for the second half are clear with action underway to improve the performance of Tuffnells and re-engineer our Click & Collect proposition."
As of 1120 BST, shares had lost 4.67% to 57.20p.