Smiths News (SNWS) H1 2026 earnings summary

Executive summary

• Delivered solid interim results for HY2026, with adjusted operating profit of £18.3m and adjusted profit after tax of £12.7m, and full-year results expected to meet market expectations.

• Newspapers and magazines remained resilient, with 96% of revenues secured to 2029 after major contract renewals.

• Growth verticals, especially Collectables and Recycling, showed strong performance, with Collectables up 13.3% and Recycling revenues up over 50% year-on-year.

• Interim dividend of 1.75p per share declared, reflecting ongoing confidence.

• New CFO, Richard Clay, appointed in February 2026.

Financial highlights

• Revenue for HY2026 was £515.7m, down 3.9% year-over-year, in line with guidance.

• Adjusted operating profit decreased by 5.7% to £18.3m, mainly due to higher costs.

• Adjusted profit after tax was £12.7m; adjusted EPS fell 3.7% to 5.2p.

• Free cash flow increased 59.4% to £21.2m, aided by a £7.6m working capital benefit.

• Average bank net cash improved to £16.2m from net debt of £1.1m in HY2025.

Outlook and guidance

• Full-year results expected in line with market expectations, with H2 profit weighted due to major events like the FIFA World Cup.

• Operational efficiencies of over £4m targeted for FY2026.

• Positive outlook for the remainder of the year, with Collectables and growth verticals expected to drive further momentum.