Smiths News Plc · LSE:SNWS
Smiths News — H1 2026 Earnings Presentation
21 slides from Smiths News's earnings presentation, May 2026
Slide 1: Interim Results
Interim Results May 2026
Slide 2: Headlines
Headlines Jon Bunting Chief Executive Officer
Slide 3: Headlines
Headlines ⚫ Delivered a solid performance with adjusted operating profit 35% increase in of £18.3m and adjusted profit after tax of £12.7m, with FY growth verticals results expected to be in line with market expectations* revenues in HY2026 ⚫ Newspapers and magazines business traded in line with bro
Slide 4: Richard Clay, Chief Financial Officer
Richard Clay Chief Financial Officer
Slide 5: Financial Summary
Financial Summary Adjusted (£m) H1 2026 H1 2025 Variance Revenue Reduced by 3.9% in line with Revenue 515.7 536.4 -3.9% historic norms. Operating profit Adjusted operating profit 18.3 19.4 -5.7% Lower profit reflects annualisation of NIC Adjusted earnings per share 5.2p 5.4p -3.7% increases and inve
Slide 6: Revenue analysis
Revenue analysis Reported decline -3.9% Newspapers and Magazines ⚫ Underlying newspapers and magazines in line with guidance -4.1% (-4%) ⚫ Collectables continue to perform well ⚫ Growth initiatives +35% although small in overall mix Collectables +13.3% Growth initiatives +35.1% 6
Slide 7: Adjusted income statement
Adjusted income statement Operating profit £1.1m Adjusted (£m) H1 2026 H1 2025 lower Revenue 515.7 536.4 Driven by NIC increases and investments in the cost base Operating profit 18.3 19.4 Operating margin 3.5% 3.6% Net finance charges (1.3) (1.7) Net finance charges £0.4m Profit before tax 17.0 17.
Slide 8: Free cash flow
Free cash flow £m H1 2026 H1 2025 Free cash flow £21.2m inflow Underlying cash flow consistent Operating profit 18.3 19.4 with previous years excluding Depreciation and amortisation 4.7 4.6 one-offs and working capital timing EBITDA 23.0 24.0 Working capital 7.6 (2.5) Investment spend Capital expend
Slide 9: Rolling 12-month cash flow
Rolling 12-month cash flow Cash flow rolling 12 months Movement in net cash - 12 months H1 2024 £22m 20 H1 2025 £26m 15 H1 2026 £27m 10 -13.5 Average bank net (debt)/cash 5 H1 2024 (£12.5m) 7.8 H1 2025 (£1.1m) 0 26.8 14.3 H1 2026 £16.2m -7.4 -5 -12.4 Dividends (cash) -10 2025 £13.2m -15 H2 2025 £4.2
Slide 10: Jon Bunting, Chief Executive Officer
Jon Bunting Chief Executive Officer
Slide 11: Newspapers and Magazines
Newspapers and Magazines ⚫ Solid performance from newspapers and magazines activity Predictable revenue base and in line with broader market expectations and historic norms underpins growth, investment and capital ⚫ 96% of revenues now secured out to 2029 following recent allocation contract renewal
Slide 12: Weekly tracked deliveries
Weekly tracked Unsold newspapers & deliveries magazines recycled c.160,000 99% Daily Locations across customers England and Wales 22,400 34 Items distributed Items collected weekly weekly 15.5m 5.5m 12
Slide 13: Collectables
Collectables ⚫ Sustained demand across collectables market, which will be supported by one-off events in H2 2026 ⚫ Proactive trading has secured additional contracts to distribute Pokémon, alongside a Japanese anime card trial ⚫ Smiths News distribution footprint continues to unlock further opportun
Slide 14: Recycle
Recycle Recycling revenues increased ⚫ Strong performance of Recycling division, with revenues up 53% vs HY2025 over 50% versus HY2025 ⚫ Strengthening partnerships with waste brokers to unlock the most effective routes to market ⚫ Exploring opportunities across vape and WEEE recycling services, alon
Slide 15: Deposit Return Scheme
Deposit Return Scheme ⚫ Due to be launched from October 2027 ⚫ Targeting c.25 billion containers (plastic and metal drinks bottles and cans) ⚫ Aims to improve recycling rates, reduce litter and create a circular economy ⚫ c.30k convenience and independent retailers in scope expected to opt for a man
Slide 16: New Categories and Final Mile
New Categories and Final Mile ⚫ Ongoing progress to further leverage network capacity ⚫ Ongoing progress with our book distribution service, with our teams now delivering approximately 30,000 books per week to our existing customers ⚫ Book merchandising contract secured ⚫ Onboarding an international
Slide 17: Investment Programme
Investment Programme ⚫ Optimising warehouse operations and enhancing existing capabilities to future proof both established and growth activities: > Rolling out Transport Management System across all final mile sites by end of 2026 > Expanding our cloud Warehouse Management System to support new gro
Slide 18: Outlook
Outlook ⚫ Solid start to FY2026 and on track to deliver results for the full year in line with market expectations* ⚫ Newspapers and magazines segment remains resilient and collectables are performing strongly with an increasing contribution from growth verticals ⚫ On track to deliver operational ef
Slide 19: Any questions?
Any questions?
Slide 20: smiths
smiths
Slide 21: Cautionary statement
Cautionary statement This document contains certain forward-looking statements with respect to Smiths News plc’s financial condition, its results of operations and businesses, strategy, plans, objectives and performance. Words such as ‘anticipates’, ‘expects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’