Smiths News declares special dividend after profit surge
Smiths News exceeded its profit expectations during its financial year, leading the UK-based wholesaler to announce a special dividend for its shareholders.
According to its full-year results, the company’s revenue for the year ending 31 August 2024, reached £1.1bn, a 1.1 per cent uptick from last year.
During that time, its adjusted operating profit also jumped to £39.1m, bolstered by sales tied to the men’s UEFA European Championships and an additional trading week.
These results led to a special dividend of 2p per share extra from the final ordinary dividend of 3.4p per share.
After a refinancing in May, Smiths News reduced its average bank debt by 53 per cent, hitting £11.7m.
This significantly lowered its interest expenses and increased its financial flexibility.
Chief executive Jonathan Bunting noted: “Our performance over FY 2024 reflects the resilience of our news and magazines business and impact of our cost efficiency initiatives.”
The firm has secured 91 per cent of its publisher revenue under long-term agreements until 2029, reinforcing its core news and magazine business.
Meanwhile, its programmes such as its recycling scheme contributed £2m to operating profit.
Its overall shares rose nearly six per cent to 60.40p following this morning’s announcement, with the stock up about 17 per cent year over year.
The firm expressed confidence in its future following these results, pointing to its asset-light model and a focus on growth areas.
Bunting said his growth programme “is centred around Smiths News’s asset-light, flexible cost base and our established competencies across reverse logistics, warehousing and early morning final mile services.”
Bunting stated that Smiths News remains “well-placed” for sustainable performance, with an investment strategy aimed at profitable growth, while delivering cash returns to shareholders.