Smiths News reports solid first-half trading performance
By Josh White
Date: Wednesday 06 May 2026
(Sharecast News) - Smiths News reported a solid first-half trading performance on Wednesday, and said full-year results were expected to be in line with market expectations, supported by growth verticals, collectables and upcoming football-related demand.
The London-listed news wholesaler and early-morning supply chain specialist said revenue fell 3.9% to £515.7m in the 26 weeks ended 28 February, from £536.4m a year earlier, in line with broader print market trends and historic norms.
Adjusted operating profit declined 5.7% to £18.3m from £19.4m, while adjusted profit after tax fell 3.1% to £12.7m.
Adjusted earnings per share were 5.2p, down from 5.4p.
Smiths News said the profit movement reflected the annualisation of National Insurance contributions and ongoing cost-base investment, including in technology.
On a statutory basis, operating profit fell 11.5% to £17.7m, profit after tax declined 9.6% to £12.2m, and earnings per share dropped to 5.0p from 5.6p.
Free cash flow rose 59.4% to £21.2m, including a £7.6m working capital benefit during the period.
The company ended the half with bank net cash of £7.8m, compared with bank net debt of £12.4m a year earlier.
Average bank net cash was £16.2m, compared with average net debt of £1.1m in the prior year.
Smiths News declared an interim dividend of 1.75p per share, unchanged from last year, payable on 3 July.
Chief executive Jonathan Bunting said the company had made "a solid start" to the financial year.
"Our newspaper and magazine operations continue to perform in line with expectations, while opportunities in our growth verticals are gaining traction," he said.
"During the period, we secured our largest book delivery contract to date and made further progress in expanding our recycling activities."
The company said investment in growth verticals continued, with revenue in those activities rising 35% during the period, driven mainly by the recycling division, where revenue increased by more than 50%.
It said progress included working with brokers to generate higher recycling volumes and onboarding an international optical and hearing care provider for overnight delivery services.
Newspaper and magazine revenues performed in line with historic norms, with a good contribution from collectables and growth vertical revenue streams.
Smiths News said sustained demand in collectables was supported by continued interest in UK football and Pokémon collections.
The company said 96% of newspaper and magazine revenues were now secured to 2029, up from 91% a year earlier, following the renewal of a long-term contract with the Guardian Newspaper Group.
"Importantly, we have now secured 96% of our existing publisher contract revenues through to 2029," Bunting said.
"This includes the recent renewal of a long-term contract with the Guardian Newspaper Group, further strengthening our revenue visibility and supporting our commitment to delivering high-level service to our newspapers and magazines customers and sustained value for all stakeholders."
Smiths News said its internal investment programme was progressing as planned, with a focus on improving customer service and operational efficiency across all verticals.
Implementation of a fleet-wide transport management system is scheduled to begin in the second half of 2026.
The company said it remained on track to deliver more than £4m of operational efficiencies in the 2026 financial year.
Looking ahead, Smiths News said it expected to deliver full-year results in line with current market expectations, which it identified as adjusted operating profit of £37.2m.
The second-half outlook was supported by growth verticals and demand drivers including the Pokémon 30th anniversary collection and the FIFA Men's Football World Cup.
At 1004 BST, shares in Smiths News were up 2.22% at 66.45p.
Reporting by Josh White for Sharecast.com.
See latest RNS on Investegate
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN