**Summary**
Smiths News PLC, the UKs largest news wholesaler, released its preliminary results for the 52 weeks ended 30 August 2025. The company reported strong financial performance, with adjusted operating profit of ยฃ39.1 million, ahead of market expectations, driven by excellent collectables performance. Revenue was ยฃ1,064 million, with 16% growth from new verticals, and 93% of revenues secured to 2029. The companys cash position was robust, with free cash flow of ยฃ36.1 million, supported by strong trading and one-off receipts, including ยฃ5.4 million from the administrators of McColls Retail Group.
**Key Financial Highlights**
Adjusted operating profit of ยฃ39.1 million, ahead of market expectations and FY2024.
Revenue of ยฃ1064 millionwith 16% growth from new verticals.
Free cash flow of ยฃ36.1 million, including ยฃ6.9 million of one-off receipts.
Proposed final ordinary dividend of 3.80 pence per share and special dividend of 3.0 pence per share.
**Business Performance**
The news and magazines business performed well, with collectables delivering an excellent performance.
New verticals, including recycling and final mile services, continued to grow, with revenues increasing by 16%.
The companys internal investment program is progressing to plan, with ยฃ2.4 million of ยฃ6.0 million three-year investment made by the end of FY2025.
**Outlook**
The company expects continued strength in the collectables market across FY2026, driven by one-off events.
Ongoing momentum in new verticals is supported by the appointment of a Managing Director of Recycling.
The company expects to deliver results in line with current market expectations for FY2026.
**Dividend**
Proposed final ordinary dividend of 3.80 pence per share and special dividend of 3.0 pence per share, resulting in total dividends of 8.55 pence per share.
**Conclusion**
Smiths News PLC delivered a strong financial and operational performance in FY2025, with growth in new verticals and a robust cash position. The companys strategic priorities remain focused on expanding its unique UK operating footprint and investing in new business verticals, while maintaining shareholder returns. The outlook for FY2026 is positive, with expected growth in collectables and new verticals.
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### Key Observations:
1. **Revenue**: Decreased by 3.6% year-on-year, primarily due to the long-term decline in the newspaper and magazine market.
2. **Adjusted Operating Profit**: Remained stable at ยฃ39.1m, driven by strong performance in collectables and cost-saving measures.
3. **Adjusted Profit After Tax**: Increased by 9.3% to ยฃ27.0m, benefiting from lower finance costs.
4. **Free Cash Flow**: Significantly improved to ยฃ36.1m, supported by strong trading and one-off receipts, including ยฃ5.4m from McColl's Retail Group.
5. **Bank Net Cash/(Debt)**: Improved from a net debt of ยฃ11.0m to a net cash position of ยฃ3.3m, reflecting strong cash generation.
6. **Dividends**: Both ordinary and special dividends increased, with total dividends rising to 8.55 pence per share from 7.15 pence per share in FY2024. This table provides a concise comparison of key financial and debt metrics between FY2025 and FY2024.