Smiths News trading in line with expectations; confirms final dividend

Thu, 16th Jan 2025 15:17

(Alliance News) - Smiths News PLC on Thursday said it still expects to post a slight growth in annual profit for the current year, and it confirmed its final dividend for the last.

The Swindon, England-based newspaper and magazine distributor said trading for the year ending August 30 remains in line with market expectations. It puts adjusted pretax profit consensus at GBP33.3 million.

This would be a 0.3% growth on-year from GBP33.2 million.

The firm also confirmed, following its annual general meeting on Thursday morning, that it will pay a final dividend of 3.4 pence per share and a special dividend of 2.0p on February 6. This brings the total dividend for financial 2024 to 7.15p.

Smiths News in December said it had entered into a new contract with Reach PLC that would extend through 2029, and was worth around GBP160 million in revenue per year.

The group on Thursday said it has now formally secured the long-term contracts, with earnings from the deal due to represent 91% of the group's newspaper and magazine revenues until it concludes in 2029.

Chief Executive Officer Jon Bunting says: "The business has continued to perform well since the start of the year, and we remain on track to meet market expectations. Alongside ensuring we continue to deliver a first-class service to our newspaper and magazine customers, we remain focused on further capitalising on our proven early morning capabilities in order to further enlarge our operational footprint."

Smiths News will release its half-year results in May.

Shares in Smiths News were up 2.0% at 60.80 pence each in London on Thursday afternoon. Its stock price has grown 32% in the last 12 months.

By Emily Parsons, Alliance News reporter

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