Leading news wholesaler Smiths News has reported a strong performance for the financial year ended 30 August 2025, with profits ahead of market expectations and new revenue streams showing encouraging momentum.
The company’s adjusted operating profit rose to £39.1 million, driven by a surge in the collectables category, which saw significant demand throughout the year. Revenues stood at £1.06 billion, reflecting both the expected long-term decline in print sales and 16 per cent growth from new business verticals.
“Smiths News has delivered a strong financial and operational performance, reinforcing confidence in our business,” chief executive Jonathan Bunting said. “Our strategic priorities remain steadfast as we seek to both leverage and expand our unique UK operating footprint.”
Highlights
- News and magazines: The segment delivered a ‘pleasing performance’ in FY2025 and continues to generate the majority of Smiths News’ revenue and profits. Against a backdrop of long-term market decline – which continues to be in line with internal expectations – the company said it is working closely with retailers to maximise commercial opportunities across the category.
- Collectables boom: The category, which operates on a separate demand cycle from newspapers and magazines, was a key driver of profit growth. The company expects continued strength into FY2026, supported by major events including the Men’s Football World Cup and the 30th anniversary of Pokémon.
- New verticals gaining traction:
- Recycling services grew 49% to over 2,500 tonnes collected, and Smiths News has appointed Adam Wylie as Managing Director of Recycling to scale the operation.
- New category delivery trials, including a partnership with Hallmark, resulted in over 63,000 greeting cards delivered across 175 stores.
- The company also secured a multi-year “in-night” delivery contract for specialist engineering and manufacturing parts, marking further expansion of its early-morning logistics network.
- Operational efficiency: Smiths News delivered £4.9 million in cost savings during the year, continuing its long-term programme of network optimisation.
- Strong cash generation: Free cash flow surged to £36.1 million, bolstered by one-off receipts including £5.4 million recovered from the administrators of McColl’s Retail Group. The company ended the year with a net cash position of £3.3 million.
- Internal investment programme: Smiths News commenced a three-year internal investment programme in FY2025, increasing investment by £2m per annum through to FY2027. Thereafter, investment is expected to revert to a normalised level of £4m per annum. The programme seeks to optimise warehouse operations and enhance existing capabilities and efficiencies, without disrupting service to the company’s existing customers.
Outlook
Reflecting its robust cash performance, Smiths News has proposed a final dividend of 3.8 pence per share and a special dividend of 3.0 pence per share, taking total dividends for the year to 8.55 pence.
Looking ahead, the company said trading has started well in the new financial year, with momentum continuing across both traditional and emerging business lines. Management expects FY2026 results to be in line with current market expectations.