Smiths News’ FY25 results were better than expected, with reported adjusted operating profit of £39.1m, up 2.4%, comfortably ahead of our estimate of £37.0m. The primary driver of this was largely due to unexpected collectibles activity. The core business saw demand in line with expectations and the new verticals witnessed increased activity that underpinned the results, along with c £4.9m of cost efficiencies from the distribution network. Cash generation was strong, boosted by c £6.9m of unexpected inflows, which are being used to pay an increased ordinary total dividend for the year of 5.5p (+8% y-o-y), plus a 3p/share special dividend (FY24; 2.0p/share).
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