Smiths News delivers good news and special dividend after forecast-beating year
Newspaper wholesaler Smiths News has proposed a special dividend after it delivered full-year profits ahead of market expectations.
The 200-year-old business made cost savings of £5.6m during the year, which pushed adjusted operating profits up to £39.1m – nearly £1m higher than forecast.
Revenues for the year to August edged up 1.1% to just over £1.1bn, although it was a 53-week financial year.
Smiths News chief executive Jon Bunting said: “Our performance over FY 2024 reflects the resilience of our news and magazines business and impact of our cost efficiency initiatives.
“Smiths News is well placed to continue to deliver a resilient performance over the medium term. Meanwhile, the combination of the recently announced investment programme and dividend policy demonstrates our ability to meet the ongoing needs of the business while providing attractive cash returns to shareholders.”
A final dividend and special dividend, announced today, means the Swindon-based company will have returned £17.2m to shareholders for the financial year.
Smiths News has 91% of its existing publisher revenue streams secured subject to contract to 2029, providing it “with stability of and visibility over revenues across the medium term”.
This is being supported by a three-year internal investment programme, which is underway, that will also provide additional growth opportunities.
Bunting added: “Our growth programme is centred around Smiths News’s asset-light, flexible cost base and our established competencies across reverse logistics, warehousing and early morning final mile services.
“These position us well to drive profitability from complementary market opportunities in growth areas such as recycling, final mile and warehousing verticals.”
