Smiths News PLC (LSE:SNWS) reported revenue of £1.04 billion for the 52 weeks ended 29 August 2026, down 2.6% year-on-year, while adjusted operating profit declined 1.0% to £38.7 million, in line with the company’s upgraded market expectations.
The UK newspaper and magazine wholesaler also announced long-term distribution agreements expected to generate approximately £375 million in additional annual revenue, supporting a major expansion of its national delivery network.
Annual Financial Performance
Revenue declined to £1,036.2 million from £1,064.0 million in FY2025, while adjusted operating profit decreased to £38.7 million from £39.1 million.
Adjusted profit after tax increased 1.5% to £27.4 million, supported by lower borrowing costs, while adjusted earnings per share rose to 11.3 pence from 11.1 pence.
On a statutory basis, operating profit fell 16.0% to £34.6 million, while profit after tax declined 13.8% to £24.4 million.
The company reported £4.5 million in operational efficiencies during the year.
Free cash inflow decreased to £24.1 million from £36.1 million, while year-end bank net cash increased to £3.9 million from £3.3 million.
National Distribution Contracts and Network Expansion
Smiths News secured long-term agreements with News UK & Ireland, Telegraph Media Group, Associated Newspapers, Frontline and Seymour Distribution.
The contracts, extending revenue visibility through 2037, are expected to generate approximately £375 million in incremental annual revenue, against a broader potential opportunity of around £600 million.
To support the agreements, Smiths News is implementing its Go National programme, which will expand distribution operations across Great Britain.
The programme includes approximately 700 additional delivery routes and 23 new depots, with planned investment of £21 million to £27 million funded through existing financing arrangements.
The expansion is expected to increase the company’s delivery network from more than 21,000 customers to over 37,000.
Collectables and Other Growth Activities
Smiths News reported a record contribution from collectables during FY2026, supported by demand associated with the FIFA Men’s World Cup and Pokémon products.
Revenue from its other growth activities increased 31% year-on-year, including contributions from recycling logistics.
The company’s core newspaper and magazine distribution activities performed broadly in line with historical trading patterns.
Dividend and Shareholder Returns
The board proposed a final dividend of 3.90 pence per share, bringing the total ordinary dividend for FY2026 to 5.65 pence per share.
This compares with an ordinary dividend of 5.55 pence per share in FY2025.
No special dividend was declared for FY2026, compared with a 3.00 pence special dividend in the previous year.
Outlook for FY2027 and Beyond
Smiths News said trading in FY2027 has started positively, with implementation of its national distribution expansion remaining the principal operational priority.
The company expects expansion and transition costs to affect profitability during FY2027.
Management anticipates that the enlarged distribution network will begin contributing incremental net profit from FY2028, with more substantial financial benefits expected from FY2029 onwards.
The group also intends to maintain its FY2027 ordinary dividend at or above current market consensus expectations of 5.2 pence per share.
More About Smiths News
Smiths News PLC is a UK newspaper and magazine wholesaler providing distribution, warehousing and early-morning logistics services to publishers and retailers. Its operations also include recycling logistics, collectables distribution and other supply chain services.
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