Set to deliver on FY26 expectations

Smiths News’ H126 results saw adjusted PBT in line with market expectations. The expected FY26 operational improvements of more than £4m are progressing to plan, and the company is on track to meet FY26 adjusted PBT expectations of £37.2m with a slightly stronger H2 performance supported by the positive impact of the FIFA 2026 World Cup on the collectables business. Our FY26 P&L estimates are unchanged, while FCF improves due to better working capital. Valuations of companies with similar characteristics support our 96p/share (95p previously) DCF valuation as does the company’s solid track record of sensible capital allocation and healthy dividends.