National World delivers 'significantly increased profits' following integration of acquired businesses

In the 26 weeks ended June 29 2024, the group’s total revenue increased by 17 per cent to £48.8m while digital revenue rose by 12 per cent year-on-year to £10m.

The adjusted operating profit was up by 62 per cent to £4.7m.

The group also confirmed it had a strong balance sheet with significant financial flexibility.

Commenting on the results, Executive Chairman, David Montgomery, said: "The enhanced performance and significantly increased profits are the result of expert integration of acquired businesses and also an energetic restructure of the operating model based around original, monetisable content, re-skilling of the talent base and greater engagement with registered customers.

"We are investing in both automated processes combined with the development of a social media platform that deepens the relationship with communities and interest groups to win back key marketplaces.

"At the same time our expert and specialist content, in areas such as business and sport, is exploiting a national footprint that in future will be better represented by the group to promote data and sales.

"National World is also alive to the attractiveness of consolidation, extracting immediate significant synergies and equipping acquired businesses with the innovative tools to grow exponentially."

The group’s events revenues of £2.5m represents a 92 per cent improvement year-on-year. National World said this figure was boosted by the acquisition of Insider Media in April 2023.

The statement added: “The group will run 100 events throughout the year across the UK and 50 sector specific networking breakfasts. The sector specialisms include finance, property, manufacturing, community and apprenticeships. This business is in a highly rated marketplace and our 2024 growth makes it a meaningful diversification for the group.”

The group has completed two acquisitions in 2024, with Athletics Weekly acquired in May and Serious About Rugby League in July. Both acquisitions were funded from existing cash resources.

A maiden interim dividend of 0.2 pence per share has been approved and declared by the board and will be paid in September.

Commenting on outlook, the statement said: “The company's primary focus is to build a sustainable and monetisable content business, embracing its news provision tradition but with a wider agenda across all platforms. This pivoting of the business has continued unabated despite the economic headwinds in the first half.

"Revenues in July have increased by 13 per cent year on year.

"The company will continue to benefit in the second half from three key drivers - the acquired businesses, new launches and relaunches of heritage brands. Tight cost management remains a critical factor as in the whole sector.

“The board confirms its view that the business will perform in line with market expectation for the full year.”