Smiths News Revenue Dips, Maintains Market Expectations with Strong Collectables Performance

Smiths News PLC (LSE: SNWS) has released its final results for the 52 weeks ended August 30, 2025, revealing a mixed financial landscape.

While revenue experienced a slight dip, the company's strategic focus on operating efficiencies and new business verticals, particularly collectables, has enabled it to maintain market expectations.

Revenue for the period stood at £1,064 million, a 3.6% decrease compared to the £1,103.7 million reported in FY2024. However, on a comparable 52-week basis, the decline was a more modest 1.7%. This dip was offset by a 16% revenue growth from new verticals, demonstrating the company's successful diversification efforts.

Adjusted operating profit remained robust at £39.1 million, matching the previous year's figure and exceeding market expectations. On a comparable 52-week basis, adjusted operating profit was ahead of FY2024 by £0.9m. This performance was largely driven by the excellent performance of the collectables segment.

Cash generation saw a significant increase to £36.1 million, up from £23.0 million in FY2024 on a 52-week basis. This was boosted by £6.9 million of additional receipts, including £5.4 million from the administrators of McColl's Retail Group, representing 98% of the original debt balance.

The company's strong financial position has allowed it to reward shareholders with an increased ordinary dividend of 5.55 pence per share, up from 5.15 pence per share in FY2024. Additionally, a special dividend of 3.0 pence per share has been proposed, bringing the total dividend for the year to 8.55 pence per share, compared to 7.15 pence per share in the prior year.

Jonathan Bunting, Chief Executive Officer of Smiths News, commented: “I am delighted Smiths News has delivered such a strong financial and operational performance across the year, reinforcing the ongoing confidence we have in our business.”

Looking ahead, Smiths News anticipates continued strength in the collectables market, driven by events such as the Men's Football World Cup and Pokémon's 30th anniversary.

The company also expects ongoing momentum in new verticals, supported by the appointment of a Managing Director of Recycling. Management continues to implement strategy to establish Smiths News as a leading provider of early morning, end-to-end supply chain solutions.