Smiths News PLC (LSE: SNWS), the UK's largest news wholesaler, has reported audited results for the 52 weeks ended 29 August 2026, delivering revenues of £1,036.2m and adjusted profit after tax of £27.4m, up 1.5% year on year. The company simultaneously announced transformational exclusive national distribution contracts with major publishers including News UK, Telegraph Media Group, and Associated Newspapers, generating an incremental revenue uplift of approximately £375m per annum. The 'Go National' programme will extend the company's distribution network to cover approximately 700 additional routes and 23 new depots across Great Britain, with long-term contracts running until as late as 2037.

Key Points

  • Smiths News PLC (LSE: SNWS) — UK's largest news and magazine wholesaler
  • FY2026 revenues of £1,036.2m; adjusted operating profit of £38.7m, in line with upgraded market expectations
  • National distribution contracts worth c.£375m incremental annual revenue secured with five major publishers through to 2037; total additional revenue potential of c.£600m per annum
  • Investors should watch FY2027 profitability impact from expansion costs, with net profit growth expected from FY2028 and material benefits anticipated from FY2029

Smiths News FY2026 Financials: Revenue Dips 2.6% but Adjusted Profit After Tax Rises on Lower Borrowing Costs

Smiths News reported revenues of £1,036.2m for FY2026, a 2.6% decline versus FY2025's £1,064.0m, reflecting the ongoing structural decline in newspaper and magazine volumes. Adjusted operating profit fell marginally to £38.7m from £39.1m, while adjusted profit after tax rose 1.5% to £27.4m, benefiting from lower borrowing costs. Adjusted earnings per share improved to 11.3p from 11.1p. The company delivered £4.5m of operational efficiencies and ended the period with bank net cash of £3.9m. Free cash flow of £24.1m was lower than FY2025's £36.1m, which had included £6.9m of one-off receipts.

'Go National' Programme: 700 New Routes, 23 Depots and £21m–£27m Investment to Create National Network

The centrepiece of the FY2026 announcement is the 'Go National' expansion programme, underpinned by exclusive long-term wholesale distribution contracts with News UK, Associated Newspapers, Telegraph Media Group, Frontline Limited, and Seymour Distribution Limited. The contracts cover incremental annual revenues of approximately £125m, £105m, £40m, and a combined £105m from Frontline and Seymour respectively. Implementation costs are estimated at £21m to £27m, split equally between adjusting items and capital expenditure, alongside transition costs of £7m to £9m in FY2027. The contracts give Smiths News approximately 61% of the national newspaper and magazines market once fully operational.

FIFA World Cup and Pokémon Drive Record Collectables Contribution in FY2026

Collectables delivered a standout performance in FY2026, with the FIFA Men's Football World Cup generating a record contribution boosting the collectables segment by over £3m. Smiths News also benefited from continued Pokémon demand and expanded its collectables range to include Japanese anime and trading card games following a successful trial. Revenues from the company's three growth verticals rose 31% year on year, led by recycling activities which grew 52% versus FY2025. Smiths News now operates over 7,000 recycling collection services across its network, covering cardboard, plastic film, food waste, vapes, and other categories.

Dividend Maintained; FY2027 Profitability to Be Pressured by Expansion and Transition Costs

The board has proposed a final ordinary dividend of 3.90 pence per share, payable on 4 February 2027 to shareholders on the register on 8 January 2027, bringing the total ordinary dividend for FY2026 to 5.65 pence per share, up from 5.55 pence in FY2025. No special dividend will be paid in FY2026, compared with 3.0 pence per share the prior year, with capital prioritised for national expansion. The company has committed to maintaining the FY2027 ordinary dividend at or above consensus estimates of 5.2 pence per share. Incremental net profit from the Go National contracts is expected between £0m and £2m in FY2028, rising to £12m–£18m from FY2029.