Smiths News beats forecasts as collectables growth offsets newspaper weakness
By Benjamin Chiou
Date: Tuesday 04 Nov 2025
(Sharecast News) - Shares in Smiths News rose on Tuesday after the newspaper and magazine distributor beat profit and cash estimates with its results for the 12 months to 30 August, driven by a strong performance in its collectables business.
Adjusted operating profit was flat on last year at £39.1m, despite revenues slipping 3.6% to £1.06bn, but that was still 5% ahead of the consensus forecast of £37.2m.
Cash generation was also strong, with free cash flow rising to £36.1m from £23.0m the year before, helped by £6.9m of one-off items, including £5.4m from the administrators of convenience chain McColl's Retail, which it supplied with newspapers and magazines.
"The profit beat has been accompanied by strong cash generation which sees the group move to a net bank cash position at year end, highlighting significant deleveraging in recent years," said analysts at Canaccord Genuity in a research note.
Newspaper revenues were down 3.1%, reflecting the "long-term volume decline in the newspaper and magazines market", the company said. However, this was partially offset by increased sales of trading card and sticker collectables and increased revenue from new verticals. Overall, collectables revenues were up 17% over last year.
The company announced a 3.8p final dividend, taking the total full-year payout to 5.55p, up from 5.15p previously. In additional, it proposed a special dividend of 3.0p per share.
Looking forward, Smiths News said it anticipates "resilience" in the news and magazines market, along with continued strength in the collectables market, driven by one-off events like the Men's Football World Cup and Pokémon's 30th anniversary.
Trading over the current financial year remains in line with current market expectations, it added.
"I am delighted Smiths News has delivered such a strong financial and operational performance across the year, reinforcing the ongoing confidence we have in our business. Our strategic priorities remain steadfast as we seek to both leverage and expand our unique UK operating footprint," said chief executive Jonathan Bunting.
The stock was up 4.4% at 66p by 0931 GMT.
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