100% UK: Transformational contract win

Smiths News (SNWS) has announced that it has secured a transformational long-term contract with News UK & Ireland Limited (News UK), publisher of leading UK titles including The Sun, The Times, and The Sunday Times. Key transformational aspects of the contract include: national distribution for News UK with the ability to offer this capability to other customers and verticals, an incremental revenue uplift of c £125m per annum from July 2027 (c 12% of FY26 revenue £1,032m), the long contract term through to July 2037 providing improved revenue visibility for the group (that its current contracts run to c 2029), an expected return on capital above SMWS’s hurdle rate and expected earnings accretion from FY28 onwards. We maintain our estima...