Highlights

  • Adjusted operating profit in FY25 reached GBP 39.1 million, exceeding market expectations and up GBP 0.9 million on a comparable 52-week basis.
  • Cash generation increased to GBP 36.1 million in FY25, supported by one-off receipts including GBP 5.4 million from McColl’s administrators.
  • Total dividends proposed for FY2025 of 8.55 pence per share, including a special dividend of 3.0 pence.

Smiths News PLC (LSE:SNWS), the UK’s largest news wholesaler and a key provider of early morning end-to-end supply chain solutions, today announced its audited results for the 52 weeks ended 30 August 2025 (FY2025). The company delivered an operating profit ahead of market expectations, supported by performance in collectables and continued cost efficiencies, while maintaining its disciplined capital allocation policy with an increased ordinary and special dividend.

Profit Performance Ahead of Expectations

For the 52-week period, Smiths News reported an adjusted operating profit of GBP 39.1 million (FY2024: GBP 39.1 million). On a comparable basis, this represents an increase of GBP 0.9 million, driven largely by the continued success of the collectables category.

Revenue for FY2025 stood at GBP 1,064 million, down 3.6% compared with FY2024, or a smaller decline of 1.7% on a comparable 52-week basis. Notably, new verticals recorded 16% revenue growth, while 93% of total revenues are secured under contracts extending to 2029.

The company’s cost reduction initiatives delivered GBP 4.9 million in operational efficiencies during the period. Meanwhile, Smiths News advanced its three-year investment programme, completing GBP 2.4 million of a planned GBP 6.0 million investment by the end of FY2025, focused on optimising service and operational efficiency.

Cash Generation and Dividend Increases

Cash generation rose to GBP 36.1 million for FY2025, compared with GBP 23.0 million in the prior year on a comparable basis. This improvement was supported by one-off receipts totalling GBP 6.9 million, including GBP 5.4 million from the administrators of McColl’s Retail Group, representing 98% of the original debt balance.

Adjusted profit after tax increased by GBP 2.3 million to GBP 27.0 million, aided by lower finance costs. In line with its capital allocation policy, Smiths News proposed a final ordinary dividend of 3.80 pence per share, bringing the total ordinary dividend for the year to 5.55 pence (FY2024: 5.15 pence).

Additionally, the Board announced a special dividend of 3.0 pence per share, resulting in a combined total dividend of 8.55 pence per share for FY2025 (FY2024: 7.15 pence). Both dividends are scheduled for payment on 5 February 2026.

Outlook and Strategic Progress

Smiths News stated that resilience within the news and magazine market continues to underpin performance, with efficiency initiatives and new vertical expansion supporting future growth.

The company expects continued momentum in the collectables market through FY2026, supported by upcoming events such as the Men’s Football World Cup and Pokémon’s 30th anniversary. Progress also continues in new sectors, including recycling, following the appointment of a Managing Director to lead that division.

The ongoing three-year internal investment programme remains on schedule, enhancing operational capability across all service areas. Management confirmed that the business has made a positive start to the new financial year and anticipates delivering results in line with current market expectations.

SNWS shares were trading at GBX 64.80 per share at the time of writing on 4 November 2025.