Smiths News (SNWS) H2 2025 earnings summary

Executive summary

• Delivered strong FY2025 results with operating profit of £39.1m, exceeding market expectations, driven by robust collectibles demand and new verticals growth.

• Growth verticals achieved 16% revenue increase, supporting diversification efforts.

• Net cash position of £3.3m at year-end, supported by £6.9m in one-off receipts, including recovery from McColl’s.

• Proposed total dividend of £0.0855 per share for FY2025, including a special dividend, returning £38m to shareholders over two years.

• Achieved £4.9m in cost savings and continued operational efficiencies.

Financial highlights

• Adjusted operating profit of £39.1m, flat year-over-year but £0.9m higher on a 52-week basis.

• Reported revenue declined 3.6% year-over-year (1.7% decline on a 52-week basis), with adjusted revenue at £1,064.0m.

• Adjusted profit after tax up 9% to £27m, driven by lower interest costs.

• Free cash flow of £36.1m, up £28.8m from prior year, aided by working capital timing and one-off receipts.

• Ordinary dividend per share up 8% to 5.55p; special dividend up 50% to 3.0p.

Outlook and guidance

• Expect continued resilience in news and magazine markets, with ongoing strength in collectibles and new verticals broadening revenue and profit streams.

• Cost-out program and investment initiatives to support medium-term growth and efficiency.

• Investment and capital allocation policies remain unchanged; outlook aligns with market guidance.

• Confidence in future performance, with outlook in line with expectations.