Smiths News Share Discussion Threads

[stevensupertrader] 21/11/2023 12:29

Then what annoyed you so much ? Relax PAL , just only stating the fact of SNWS lately.

[hotdawg] 21/11/2023 12:25

It's got a long way to fall before I make a loss ;)

[laughton] 21/11/2023 12:25

"SP in free fall after reporting result and Marketforce renewal contract
Concerning"

Hope it goes a bit lower then so I can add more.

[stevensupertrader] 21/11/2023 12:23

Must have hit your soft part or your lost a fortune in SNWS - don’t get a heart attack PAL

[hotdawg] 21/11/2023 12:03

Oh shut up your getting boring

[stevensupertrader] 21/11/2023 11:56

SP in free fall after reporting result and Marketforce renewal contract .
Concerning

[hillock1] 20/11/2023 21:58

the latest research report from Edison

[davidosh] 19/11/2023 15:29

A reminder that there is an opportunity to meet the management team...

Smiths News will be one of the companies presenting at MelloLondon at the end of this month.

The event will take place at the Clayton Conference Centre, Chiswick on Wednesday 29th and Thursday 30th November, where you can expect over 700 investors, 50 Aim listed companies and 10 or so Trusts and Funds.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

For more information, visit

[newshound1] 19/11/2023 14:25

Frontline /seymour renewal was 50% of the magazine market and worth 180m. So 31%(marketforce) should be about 111m

[norbert colon] 17/11/2023 07:59

Last renewal was in 2019 for GBP130m

[norbert colon] 17/11/2023 07:58

Yes over 70% of sales now secured through to 2029 - great news.

[this_is_me] 17/11/2023 07:34

More good news!

[hillock1] 17/11/2023 07:16

Contract Renewal with Marketforce Smiths News is pleased to announce that it has successfully secured a new five year contract with the magazine distributor Marketforce (UK) Limited.The new agreement secures all of Smiths News' current distribution territories in the UK with Marketforce through to 2029, representing 31% of our magazine revenues and 9% of our total newspaper and magazine revenues.Marketforce is part of Future plc and as well as distributing Future's titles, Marketforce also represents a broad portfolio of independent publishers.Together with other recently announced contract awards, Smiths News has now renewed agreements representing 74% of its current newspaper and magazine revenues.Jon Bunting, Chief Executive Officer, commented:"Following previous contract wins, we are delighted to confirm this new agreement with Marketforce, a position that further cements our critical role in the wholesale distribution of news and magazines and which allows us to continue to invest in the long-term sustainability and simplification of the supply chain. Having now secured all of our major magazine contracts we remain confident that we will reach similar agreements with the remaining newspaper contracts."

[edmundshaw] 10/11/2023 10:41

Enough good points in the presie for me to stick with my holding here. With a slightly better market and an improved dividend I can see a 70p share price, maybe more on a decent FTSE uplift, and not a lot of downside. So 8.5% yield feels to me a good return for low risk and some share price growth prospects. I think their knitting-sticking is very commendable, and glad the bolt-on strategy is safe and focused.

In the future, under 50p share buybacks would make sense, but wouldn't want to see them at higher prices than 50p... I am with Buffett on that. Shoezone started doing buybacks with a share price cap which I liked, but the last one they omitted the cap which was disappointing...

[deanowls] 10/11/2023 04:24

Good points, there is only so much in thier control for me and they are doing that. Other than expanding the business which brings its own risks. It was steady as she goes, debt is coming down and it’s a great divi, long May it continue.

[newshound1] 09/11/2023 21:25

Just looked through the presentation and watched the video and my observations:

Diversifications - Recycle. In the interim results was c1900 accounts growing at 100a week now at 4000 but 1000 are the bookmaker contract so means growth slowed down to c40 a week in 2nd half of the year. Have they hit the ceiling and any future additions be at a much slower pace
Sales values of waste card and plastic is much lower than when the trial commenced and labour costs to sort and process have increased in the warehouses. The additional income is now banked and worthwhile but should we be expecting much more growth but added million to bottom line

Love media - would have been good to hear progress to date even if not massive, knowing the monthly growth rates would have been pleasing to know that was on track

Existing business - good to hear that increased costs due to inflation will be covered by the identified 5m of savings.
Cover price increases , expected to be slower and not expected to outpace the volume decline this year (may have misunderstood this - but they said returning to normal)

Overall expecting to deliver similar profits to this year (my understanding from the video but if misunderstood someone please correct )
And the intention is to increase the dividend from 10m to 13m when they can - don’t know why but was wanting more 😂

One question really want to know as mentioned a lot - the diligence cost related to an aborted purchase. What was the sector , expected purchase price and existing profits. This helps us understand are the purchases they considering genuinely good diversifications. They didn’t go ahead and purchase so not reckless but still interested to know the above

Overall impressed with this year and the just announced extended delivery areas gives a good head start to next years but without good diversification how much longer can savings be made ahead of sales decline. This year the profits were up v last year but some of this was down to one offs and interest savings which won’t reoccur.

[norbert colon] 09/11/2023 07:36

https://www.youtube.com/watch?v=_90v9p7HQUAInvestor Meet from yesterday covering a lot of ground in the Q&A session

[lord gnome] 08/11/2023 19:10

Would love to join you again at Mello. Sadly, I have other commitments which, will prevent me.

[davidosh] 08/11/2023 18:57

A reminder that there is an opportunity to meet the management team...

Smiths News will be one of the companies presenting at MelloLondon at the end of this month.

The event will take place at the Clayton Conference Centre, Chiswick on Wednesday 29th and Thursday 30th November, where you can expect over 700 investors, 50 Aim listed companies and 10 or so Trusts and Funds.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

For more information, visit

[lord gnome] 08/11/2023 15:21

Traditional market reaction to a good set of results. A collective ‘Meh!’
Never mind, this often happens on the day, only for the share price to recover and move ahead in the days that follow.
Did anyone else attend the results webinar? Nothing new to regular SNWS watchers but an interesting snippet about future dividends emerged. They will look for a traditional ‘twice covered’ dividend which means 5.4p. Only the renegotiation of banking arrangements is holding it up. Due in 2025 this could come earlier and should reflect the stronger financial situation and remove restrictive covenants on distributions. Hopefully our average borrowing will be down to zero by this point but we will still need a hefty facility for the ups and downs of cash flows.

[schofi2] 08/11/2023 10:14

At two points during the second half of the year, the Company was in a net cash position, the first time since demerger from WH Smith in 2006.

This is due a re-rating any time soon IMHO

[martin44] 08/11/2023 09:45

Happy indeed with the full 12 months results and may this one continue in a similar vein for the next 12 months!

[norbert colon] 08/11/2023 09:40

If you look back, they have renegotiated their facilities early before and I expect they may well do the same again.

[makinbuks] 08/11/2023 09:12

Steady results for sure. A little disappointed the year end bank debt wasn't zero. Also would have liked more guidance on what happens when they no longer draw on the facility. Are they saying they are stuck with the dividend covenant until Aug 2025 or are they able to renegotiate? Looking forward to the investor presentation this afternoon

[nicholasblake] 08/11/2023 09:09

The debt facility will need to be refinanced before the interims in May in order to present clean going concern statement.