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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Smiths News Plc | SNWS | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| -0.40 | -0.66% | 60.00 | 16:35:10 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 59.40 | 59.00 | 61.00 | 60.00 | 60.40 |
| Industry Sector |
|---|
| MEDIA |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| 07/05/2025 | Interim | GBP | 0.0175 | 05/06/2025 | 06/06/2025 | 03/07/2025 |
| 05/11/2024 | Final | GBP | 0.034 | 09/01/2025 | 10/01/2025 | 06/02/2025 |
| 05/11/2024 | Special | GBP | 0.02 | 09/01/2025 | 10/01/2025 | 06/02/2025 |
| 02/05/2024 | Interim | GBP | 0.0175 | 06/06/2024 | 07/06/2024 | 04/07/2024 |
| 04/10/2023 | Final | GBP | 0.0275 | 11/01/2024 | 12/01/2024 | 08/02/2024 |
| 03/05/2023 | Interim | GBP | 0.014 | 08/06/2023 | 09/06/2023 | 06/07/2023 |
| 09/11/2022 | Final | GBP | 0.0275 | 12/01/2023 | 13/01/2023 | 09/02/2023 |
| 04/05/2022 | Interim | GBP | 0.014 | 09/06/2022 | 10/06/2022 | 07/07/2022 |
| 04/11/2021 | Final | GBP | 0.0115 | 13/01/2022 | 14/01/2022 | 10/02/2022 |
| 21/06/2021 | Interim | GBP | 0.005 | 01/07/2021 | 02/07/2021 | 30/07/2021 |
| Top Posts |
|---|
Posted at 07/5/2025 08:47 by davebowler CanaccordSolid interims, FY25 on track Canaccord Genuity view The H1'25 interim results show a good first half performance with H1'25 adj. operating profit increasing by 3.2% to £19.4m, and adj. PBT increasing by 11.3% to £17.7m on the back of a 0.6% revenue decline. Continued tight cost control and delivery of cost efficiencies have driven further healthy cash generation, a hallmark of the business, with average net bank debt reducing 91% to just £1.1m across the half, despite increased business investment to support future growth. We view this as a considerable achievement given average net bank debt stood at c.£90m five years ago in H1'21. Importantly, new growth initiatives continued to gain traction across the half, with progress seen in each of the Group's growth verticals of Recycling, New Categories and Final Mile as the Group looks to target the £160m profit opportunity in ambient early morning delivery outlined at the prelims in November 2024. As flagged, the Group has officially secured long-term contracts covering 91% of its newspaper and magazine revenues through to at least 2029, providing a solid foundation to support its mediumterm growth ambitions. Resilient H1'25 performance H1'25 revenues fell 0.6% to £536.4m, reflecting lower volumes of newspapers and magazines offset by the benefits of cover price increases, increased sales of collectables and the annualisation of FY24 contract wins. Newspaper revenues fell 0.4%, magazine revenues fell 4.6% and revenues from collectables was up 4.3%. Gross margins rose 50bps to 7.0% and adj. EBIT rose 3.2% to £19.4m. Further cost efficiencies of £3.0m were delivered which offset inflationary pressures. Adj. PBT rose 11.3% to £17.7m, reflecting lower finance costs due to lower rates and lower average net debt. The H1'25 ordinary DPS has been maintained at 1.75p, whilst average net bank debt reduced 91% to £1.1m, following healthy cash generation. Progress with growth initiatives Within Recycling, Smiths News Recycle has seen a 5% increase in customers since Aug'24 and a small trial has been initiated to extend recycling services to non-news and magazine customers along selected routes in the Northwest. A new MD for Recycling activities was appointed in April and is expected to join later this year from one of the largest players in waste management, bringing specialist sector background and knowledge. In New Categories, a trial has commenced with Hallmark to distribute greetings cards into independent retailers and within Final Mile a small-scale trial has commenced with a number of providers to deliver engineering and manufacturing specialist parts to customers along existing routes. Impact on forecasts Management comments that the Group remains on track to meet FY25 expectations (FY25E consensus adj. operating profit of £37.2m & adj. PBT of £33.3m). We therefore leave forecasts unchanged. As a reminder, we forecast FY25E adj. operating profit of £37.4m (-4% yoy) and adj. PBT of £33.4m (+1% yoy). Valuation and recommendation The shares have fallen ~15% YTD, whilst forecasts have remained unchanged, which feels unjustified. The current valuation is highly attractive, in our view, with an Aug'25E PER of 5.8x, a dividend yielding 9.0% and a FCF yield of 15.0%. SNWS has a number of key attributes, including a market-leading position with a diversified customer base and strong supplier relationships with long-run contracts in place. New initiatives present a growth opportunity alongside ongoing cost reduction and strong FCF generation supports dividend payments, continued business investment and the scope for additional shareholder returns. We reiterate our BUY recommendation and 95p TP. |
Posted at 12/4/2025 12:43 by cjohnalt Good. We agree then that takeovers are not uncommon in declining sectors.Unfortunately, you've failed to understand the rationale for takeovers: economic actors calculate the value of their target and pay accordingly, if there's an edge. Given that SNWS is trading at around a PE of 5 and a very low PFCF, there is manifest motivation and margin for a takeover. Moreover, anyone with any capacity for company analysis can understand that SNWS is highly likely to sustain high cash flow for several years at least. In absolute terms, no company has a high probability of being taken over, so for me, personally, it's not a consideration. The fact that the then very different SNWS was in trouble a few years ago is irrelevant to their current position. That's a really weak suggestion. It's known as restructuring. It does happen you know. |
Posted at 11/4/2025 13:03 by stevensupertrader Consolidation with another similar declining Company is likely however the valuation of SNWS would not be at the current share price price , much lower .Unless , SNWS is buying or taking over some other Co. to boost Revenue . SNWS has tried it before in the past and failed miserably and SNWS almost went under . The CEO won’t even dare to talk or think going this route again 😃 |
Posted at 02/4/2025 13:09 by stevensupertrader SP would go up only with Revenue growth , The rest (ie raising dividends or reducing debt or cutting cost) is just buying some time .Until SNWS can find a solution to increase Revenue substantially share price will be in limbo and keep on moving lower , imo |
Posted at 28/3/2025 12:19 by davebowler Investor Mag....Swindon-based newspaper and magazines distributor Smiths News (LON: SNWS) is trading in line with expectations this year. There are currently 91% of expected newspaper and magazine revenues are secured via long-term contracts that last until at least 2029. There is a steady decline in this area, but the contracts provide good visibility. This business can generate cash while management builds up other operations. There are plans to offer ambient early morning deliveries, plus potential for other ways to utilise the company’s warehouse and distribution capacity and expertise. The share price slipped 1.49% to 52.8p. Interim results will be published on 7 May. Full year revenues are expected to decline from £1.1bn to £1.03bn, while pre-tax profit could be maintained at around £33.4m. Net debt could reduce from £11m to £8m and the dividend should be held at 5.2p/share. There should be net cash by 2026. The shares are trading on just over five times prospective earnings, and the forecast yield is 9.9%. |
Posted at 28/3/2025 09:06 by davebowler Canaccord Genuity view Smiths News has announced an H1'25 trading update covering the 26 weeks to 1 March showing that the Group has delivered a solid first half performance and trading for the year ending 30 August 2025 remains in line with market expectations. The Group has reiterated that it has officially secured long-term contracts covering 91% of its newspaper and magazine revenues through to at least 2029, providing a solid foundation to support its medium-term growth ambitions. As a reminder, the long-term nature of contracts, along with the dedicated service territories, provide high levels of visibility in terms of revenues and cash flows, as well as allowing the Group to plan its cost management initiatives and capital allocation strategy clearly. In line with the Group's strategy, management continues to maximise and leverage the Group’s leading early-morning, end-to-end supply chain market capabilities, in order to further enlarge the Group’s operational footprint. An update on progress is expected at the half-year results due 7 May. As a reminder, back in November, management outlined the addressable market for ambient early morning delivery is worth c.£1.3bn, with a c. £160m profit opportunity for SNWS to target over the medium term. Achieving 5-10% share, utilising its existing infrastructure and assets, could present an incremental profit opportunity of £8-16m over the medium term, compared to the £2.0m achieved from new growth initiatives in FY24. Impact on forecasts Today’s update shows the Group has delivered a solid first half performance with trading remaining in line with market expectations (FY25E consensus adj. operating profit of £37.2m & adj. PBT of £33.3m). We therefore leave forecasts unchanged. As a reminder, we forecast FY25E adj. operating profit of £37.4m (-4% yoy) and adj. PBT of £33.4m (+1% yoy). Valuation and recommendation The current valuation is highly attractive, in our view, with an Aug'25E PER of 5.4x, a dividend yielding 9.7% and a FCF yield of 16.3%. SNWS has a number of key attributes, including a market-leading position with a diversified customer base and strong supplier relationships with long-run contracts in place. New initiatives present a growth opportunity alongside ongoing cost reduction, and strong FCF generation supports dividend payments, continued business investment and the scope for additional shareholder returns. |
Posted at 10/3/2025 19:20 by stevensupertrader No need to apologise unless they followed you blindly without doing some research .I been telling and warning a few months back after the F/Y result that SNWS Revenue was not growing but contracting but investors were carried away by the huge dividend and special dividend declared ., Wait for the H1 result before adding further imo . |
Posted at 05/11/2024 13:24 by kenmitch Agree with davidosh and others positive about SNWS. It’s been a great lockaway share for those of us who bought several years ago not far off half the current price. Those investing then when the dividend yield was near to 10% have already had more than half their stake back in dividends. Now they/we are getting a near 20% dividend.It had been clear that there could be no dividend increase until debt was down significantly but every update has been positive so (barring shock bad news that can hit any share) the time was sure to come when they could increase dividends. Not a share for big further capital gains unless SNWS falls to a bid, but a classic income share with that very high chance of further dividend increases to come, and a starting yield at 62p of near to 12%. |
Posted at 05/11/2024 10:25 by davebowler Edison -Smiths News’ FY24 trading was robust and results came in ahead of consensus. This, along with the debt refinancing announced in May, has resulted in lower average debt, which in turn has allowed the company to implement its revised capital allocation policy (communicated in May) and its diversification ambitions. Furthermore, it has lifted its total ordinary dividend from 4.15p to 5.15p/share and announced a ‘special’ |
Posted at 14/3/2024 09:42 by davebowler Canaccord Genuity view Smiths News (SNWS) is the UK’s largest wholesaler of newspapers and magazines, with a c.55% share of a c.£2bn market. After a challenging period in the wake of some mismanaged acquisitions under previous management, the new leadership team has streamlined the Group to focus on the core distribution of magazines and newspapers, which is highly cash generative with good visibility around contracts (74% of current revenues secured until 2029/30). Whilst underlying markets face structural decline given generational and channel shifts in news consumption, management has established a strong track record of cost efficiencies to offset a declining top line and generate robust levels of profitability. In addition, a number of new growth initiatives, including Smiths News Recycle, which utilise and leverage the Group’s existing facilities and capabilities, have the potential to drive future profit growth. Strong FCF generation (c.£20m-£25m p.a.) has seen the Group deleverage rapidly and an upcoming refinancing could see an annual dividend payout cap of £10m removed, paving the way for potentially higher dividend payments. With minimal leverage and the Group forecast to move into a net cash position, we see scope for additional cash returns to shareholders. The current valuation is highly attractive, with a PER of under 5x, a secure dividend yielding 9% and a FCF yield of 21%. We initiate coverage with a BUY recommendation and 85p target price. Secured contracts provide visibility SNWS delivers c.16m newspapers and c.5m magazines each week to c.23k retailers from 35 regional depots across England and Wales. The Group has established strong relationships with all major national and regional publishers. The long-term nature of contracts, along with the dedicated service territories, provide high levels of visibility in terms of revenues and cash flows, as well as allowing the Group to plan its capital allocation strategy clearly. The Group has renewed agreements representing 74% of its current newspaper and magazine revenues through to 2029/30. Cost savings and growth initiatives SNWS has established a solid track record of delivering cost savings to broadly offset the structural decline in revenues. Further cost savings are planned over the coming years to deliver robust levels of profitability. Management has also identified a number of new opportunities which leverage the Group’s existing infrastructure and capabilities and have the potential to drive future profit growth. Smiths News Recycle is the most advanced of these, and offers collection of plastic and cardboard waste on a weekly paid for basis using the Group’s existing delivery runs and recycling facilities. Robust profitability and strong FCF generation Despite a declining topline the Group has delivered robust and stable levels of profitability in recent years. Strong FCF generation has seen the Group deleverage rapidly from 2.0x in FY20 to 0.1x in FY23, and an upcoming refinancing could see a lifting of the current £10m dividend cap, paving the way for potentially higher normal dividend payments based on cover reverting to the previously stated 2x policy. With a strong balance sheet, future FCF generation of c.£25m-£26m pa, limited capex requirements (c.£4m pa) and healthy annual dividends, the Group is set to build a healthy cash balance over the coming years. If management were to target a leverage ratio of 0.5x, we see scope for c.£38m to be returned to shareholders over the next 3 years. Valuation and recommendation SNWS trades on 4.8x Aug’24E PER with a dividend yield of 8.7% and an adj. FCF yield of 21%. We initiate coverage with a BUY recommendation and 85p target price, based on a cal’24E PER of c.8x, div yield of c.5% and FCF yield of c.12%, implying 80% upside. |
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