Smiths News

Website: Smiths News
Index: FTSE Small Cap
EPIC: SNWS
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Business Support Services
Market Cap: £173.86M
Payout Frequency: Semi-Annual

Next Smiths News Dividend

Smiths News next goes ex-dividend on 08/01/2026. This will be the Final dividend for 2026.

The dividend per share amount is 3.8000p (GBP) and the payment date is 05/02/2026.

A Special dividend of 3.0000p is also being paid. This brings the total payable to 6.8000p.

Quick summary of the dividend announcement

Final ordinary dividend: 3.80p per share.
Special dividend: 3.00p per share.
Ex-dividend date: 08/01/2026; Record date: 09/01/2026; Payment date: 05/02/2026.
Total ordinary dividend for FY2025: 5.55p (up 8% YoY from 5.15p), paid at ~2x earnings cover.
Total dividends for the year (interim + final + special): 8.55p (vs 7.15p in FY2024).
Coverage and capacity: Adjusted EPS 11.1p (ordinary payout ˜ 50%); FY2025 free cash flow £36.1m; year-end bank net cash £3.3m.

Dividend sustainability and growth

Ordinary dividend: Supported by resilient adjusted operating profit (£39.1m), improved adjusted PAT (£27.0m) and strong FCF (£36.1m). At 5.55p, cover is the targeted ~2x, implying a sustainable payout near 50% of adjusted earnings.
Special dividend: Explicitly linked to one-off cash inflows (notably £5.4m from McColl’s recovery; total one-offs £6.9m). While affordable this year, it should be viewed as non-recurring and contingent on similar cash events.
Cash and balance sheet: Shift to bank net cash and ample facility headroom underpin capacity for distributions alongside capex (£4.5m) and the three-year internal investment programme (cumulative £2.4m spent of £6.0m).
Growth trajectory: Ordinary DPS up 8% YoY aligns with policy (2x cover). Management signals continued discipline; special distributions reflect “surplus” cash rather than a structural uplift.

Support from financial performance and capital allocation

Capital allocation policy (updated post-refinancing in May 2024): Maintain ordinary dividend at ~2x cover; return excess via specials. FY2025 actions are consistent with this framework.
Earnings quality: FY2025 performance benefitted from a strong year in collectables (including some one-off stock sales), lower finance costs, and £4.9m cost efficiencies. Even excluding working-capital timing and one-offs, underlying cash generation remained healthy.
Contract visibility: 93% of revenues secured to 2029 supports medium-term cash flows, tempering structural decline in print.

Structural/policy considerations that may affect future dividends

Policy clarity: Ordinary dividend guided by 2x cover; specials depend on surplus cash/one-offs. The prior bank cap on dividends has been removed.
Business mix evolution: Investment in new verticals (recycling, additional categories, final-mile) continues; near-term profits are modest due to planned investment, but long-term diversification should support dividend resilience.
Management changes: CFO transition (Interim CFO in place; new CFO joining Feb 2026)—no direct change to dividend policy indicated.
No share consolidation, M&A, or demerger announced.

Risks and flags for dividend stability

Core market decline: Ongoing structural decline in newspapers/magazines; dependence on efficiency gains and contract renewals to protect margins.
Collectables cyclicality: FY2025 benefited from strong collectables demand and some non-repeatable sales; management expects FY2026 support (Pokémon 30th, 2026 World Cup), but variability remains a risk.
Cost pressures: Wage/NIC increases and regulatory changes could compress margins if not offset by pricing or efficiencies.
Contingent liability: Ongoing Pensions Regulator investigation related to historical Tuffnells DB scheme—no provision; uncertainty persists.
Working capital seasonality: Predictable intra-month swings; well managed with RCF headroom but can influence period-end cash snapshots.
Stress-case mitigation explicitly includes the option to withhold dividends, indicating policy flexibility under adverse scenarios.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
08/01/2026	05/02/2026	Special	3.0000p	GBX
08/01/2026	05/02/2026	Final	3.8000p	GBX

Total (Annual Dividends Per Share): 6.80p

Dividend Yield = Annual Dividends Per Share (6.80p) ÷ Share Price (72.8p) = 9.34%

Ex Dividend Date	Payment Date	Type	Amount	Currency
08/01/2026	05/02/2026	Special	3.0000p	GBX
08/01/2026	05/02/2026	Final	3.8000p	GBX
05/06/2025	03/07/2025	Interim	1.75p	GBX
09/01/2025	06/02/2025	Special	2.00p	GBX
09/01/2025	06/02/2025	Final	3.40p	GBX
06/06/2024	04/07/2024	Interim	1.75p	GBX
11/01/2024	08/02/2024	Final	2.75p	GBX
08/06/2023	06/07/2023	Interim	1.40p	GBX
12/01/2023	09/02/2023	Final	2.75p	GBX
09/06/2022	07/07/2022	Interim	1.40p	GBX
13/01/2022	10/02/2022	Final	1.15p	GBX
01/07/2021	30/07/2021	Interim	0.50p	GBX
16/01/2020	13/02/2020	Final	1.00p	GBX
07/06/2018	06/07/2018	Interim	3.10p	GBX
11/01/2018	09/02/2018	Final	6.70p	GBX
08/06/2017	07/07/2017	Interim	3.10p	GBX
12/01/2017	10/02/2017	Final	6.50p	GBX
09/06/2016	08/07/2016	Interim	3.00p	GBX

Year	Interim	Final	Currency	Total	Change
2024	1.750	3.400	GBX	5.150	24.090
2023	1.400	2.750	GBX	4.150	0.000
2022	1.400	2.750	GBX	4.150	151.510
2021	0.500	1.150	GBX	1.650	65.000
2019		1.000	GBX	1.000	-67.740
2018	3.100		GBX	3.100	-68.360
2017	3.100	6.700	GBX	9.800	3.150
2016	3.000	6.500	GBX	9.500

Number of Shares:

Payment	Paid	Amount
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