Smiths News (SNWS) Trading Update summary

Trading performance and financials

• Adjusted operating profit for FY2024 is expected to be at least £38.2m, in line with market expectations.

• Revenue grew by 1.1%, supported by increased sales from the men's UEFA European Championships, cover price inflation, organic growth, and an extra trading week.

• Operational efficiencies delivered £5.6m in cost savings, meeting budget targets.

Strategic and operational updates

• Growth initiatives are contributing increasingly to profit, aligning with management expectations.

• The business continues to focus on its core strategy, emphasizing high service levels for customers and partners.

Capital allocation and dividends

• The refinancing agreement removed the previous £10m annual dividend cap, enabling a revised capital allocation policy.

• Final dividend, maintaining 2x cover, is expected to be paid in February 2025, with further details to follow in the full year results.