Profits Jump 10% At Daily Mail and General Trust Plc

Daily Mail and General Trust plc (LON:DMGT) releases strong full-year results.

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NYX

The shares of Daily Mail & General Trust (LSE: DMGT) climbed 3% to 870p this morning after the media giant revealed a double-digit expansion in its full-year profits.

Boasting pre-tax profits of £282m, DMGT smashed analyst earnings expectations of £270m for the year. The company used its strong cash generation to slash its net debt position by £40m to £573m.

The Mail On Sunday publisher — which has exploited an impressive growth opportunity with its Mail Online website — was boosted by its business-to-business and consumer divisions.

Giving its outlook for the rest of the year, Daily Mail & General Trust added:

“We have entered the new financial year with our businesses performing well and in line with our expectations  …  First quarter consumer trading to date has been satisfactory but we remain cautious about the medium term outlook, given continuing external uncertainties, particularly for UK advertising.  A continued focus on cost efficiencies should provide margin stability.”

With a market cap of £3.1bn, DMGT’s shares trade at 16 times expected earnings, and offer a prospective dividend yield of 2.4%.

Of course, whether that valuation, today’s announcement and the future prospects for the media industry all combine to make shares of Daily Mail General Trust a ‘buy’ remains your decision.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

> Mark does not own any share mentioned in this article.

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