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LONDON - Smiths News (LSE:SNWS), the UK’s leading news wholesaler, has announced its unaudited interim results for the 26 weeks ending March 1, 2025. The company reported a slight decrease in revenue to £536.4 million, down 0.6% from the same period last year, but saw an increase in adjusted operating profit by 3.2% to £19.4 million.
The company’s performance aligns with market expectations for the fiscal year 2025. A continued focus on operational efficiencies yielded cost savings of £3.0 million during the period. Smiths News also reported a significant increase in free cash flow to £13.3 million, a substantial rise from £4.2 million in the previous year.
A key development for the company is the renewal of major contracts, securing 91% of existing publisher revenues through at least 2029. This move underpins both short and medium-term revenues and supports the expansion of Smiths News’ early morning supply chain activities.
The interim dividend remains unchanged at 1.75 pence per share, scheduled to be paid on July 3, 2025. The company’s bank net debt increased by 24% to £12.4 million, while average bank net debt saw a significant reduction.
Looking forward, Smiths News plans to continue its internal investment program to enhance its core capabilities, including the rollout of a new warehouse management system across key depots. The company expects a stable performance from its news and magazines business, with cost savings projected to reach approximately £5 million in the fiscal year 2025.
Growth initiatives are advancing across key target verticals, leveraging the company’s expertise in warehousing, reverse logistics, and early morning final mile services. Chief Executive Officer Jonathan Bunting expressed confidence in the company’s trajectory, citing the renewed contracts as a platform for delivering additional stakeholder value and supporting the company’s growth ambitions.
This report is based on a press release statement from Smiths News.
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