Smiths News Share Discussion Threads

[schofi2] 01/5/2023 13:30

I'm expecting the results to be favourable and a big divi increase creating the next step up to 70p

[norbert colon] 13/4/2023 18:20

Results on 3rd May

[trident5] 13/4/2023 17:48

They're paid to be happy though.

[makinbuks] 13/4/2023 17:27

hxxps://www.edisongroup.com/research/contract-renewals-cement-future-cash-flows/32189/

Edison happy with it too

[plasybryn] 12/4/2023 07:56

Happy with that.

[this_is_me] 12/4/2023 07:29

Another RNS further de-risking the business.

[laughton] 27/3/2023 19:09

A few more people realised just how cheap this share is.

[santangello] 27/3/2023 18:58

So what triggered the buying today ?

[catabrit] 23/3/2023 14:07

Just re the Edison note, I am surprised they reference the historical p/e because to me it's kinda meaningless. This thing had a tonne of debt. It was distracted with other non-core and loss-making business lines. The management team was worse. And the jewel of the crown (existing, highly cash generative biz) was being massively disguised by all the noise.

[catabrit] 23/3/2023 13:30

This has held up really well amidst the wider market malaise. I think that bodes well.

[santangello] 20/3/2023 16:22

Many thanks Dave.Almost says it all really.

[davebowler] 20/3/2023 12:27

Edison analyst Natalya Davies:

SNWS

It is currently trading on a P/E close to its average value over the last 5 years and share price up c 40% in past 6 months. They have secured four long-term contracts to 2029, which account for 46% of their current newspaper and magazine revenues in all of their existing territories.



Low PE, high dividend yield - attractive for a company that is so cash-generative; currently trading on P/E of 4.7x in FY23e with yield of 9%.
FY22 results exceeded expectations- adjusted PBT increased 0.6% to £31.1m as financing costs declined with falling debt.
Annual yoy revenue decline of 1.8% to £1,089m, below pre-COVID average decline of 3-5%.
Leverage ratio (net debt/EBITDA) of 0.3x- consistent ability to pay down debt.
we estimate net debt to decrease to £2.6m in FY23, implying a leverage ratio of 0.06x.
Management successful in mitigating inflation and controlling costs within budget.
Thus far the company has secured four long-term contracts until 2029, which account for 46% of its newspaper and magazine revenues- underpin attractive valuation.
Fixed energy prices lasting to 2024.

[norbert colon] 28/2/2023 11:16

Have a look at the last results presentation on their website - hxxps:// www.smithsnews.co.uk/wp-content/uploads/SN_2022_prelims_presentation.pdf

[laughton] 28/2/2023 10:33

Some of them have already been mentioned - distribution of a drink to existing cutomers (can't remember name), collection and recycling of packaging materials, collection/storage/recycling of pallets/sub letting of unused wharehousing space.

There may be more but these all seem good use of existing capacity at negligible additional cost.

[hotdawg] 28/2/2023 10:11

The question is, what is the ancillary revenue opportunities the company seeks to further?

[fft] 28/2/2023 08:11

Interesting NED appointment. Has she been brought in to handle a specific potential opportunity within SNWS otherwise why spend the cash ? Given the size of SNWS, do they still need someone to open doors for them ?

[catabrit] 27/2/2023 13:33

Couldn’t agree more @ Lord Gnome.

[lord gnome] 27/2/2023 13:29

I think the moment of truth will come when the debt is repaid, they are starting to accumulate cash in the bank, and the broker comes up with a possible acquisition for them. That will test their resolve. As long as they take baby steps and don't bet the farm like the last lot, then we should be ok. FWIW I like our straight-talking CEO.

[riverman77] 27/2/2023 12:37

Don't mind them adding some adjacent services as long as it only involves minimal investment - remember the previous disastrous sidelines (I think there was one called pass the parcel) which had very heavy losses and really put the company in a bad place. Stick with the core business, which is a nice steady cash generator.

[norbert colon] 27/2/2023 12:05

Lots to like in that interview re: potential for adjacent offerings to offset core biz decline, trading inline, scope for divi increase once GBP10m cap is lifted. Group will be in net cash this year so I'd expect banking facilities will be renegotiated in the medium term.

[lord gnome] 27/2/2023 11:33

Nothing new there, Jeff, but worth watching for confirmation that all is well and moving in the right direction. Thanks for the link.

[jeff h] 27/2/2023 10:32

New contracts signed at "better terms"

[catabrit] 22/2/2023 16:18

Interesting. Well if we could “pump” this one and another of my holdings that’s very very close to the threshold, I would be delighted!

I’m kidding. The only pump I endorse is the one you can find in the gym!

[1mgj] 22/2/2023 15:16

according to Numis the market cap cut-off for promotion in March to the FTSE Smallcap index is £131.5m.