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:
£166.43M
Payout Frequency: Semi-Annual
Smiths News Dividend Analysis and Summary
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.
Read more
Smiths News Annual Dividend Yield - 9.94%
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 (68.4p)
= 9.94%
Smiths News Dividend History
| 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 |
|
Smiths News Dividend Calculator
Smiths News Dividend Growth
| Dividend Growth (1Y) |
19.58%
|
| Dividend CAGR (5Y) |
76.44%
|
| Years of Growth |
4
|
| Payout Ratio |
61.48%
|
| Buyback Yield |
0.36%
|
| Shareholder Yield |
13.08%
|
| P/E Ratio (TTM) | 6.05 |
|---|
| Forward P/E | 6.6 |
|---|
| P/FCF | 3.64 |
|---|
| Earnings Yield | 17.1% |
|---|
| FCF Yield | 27.49% |
|---|
| ROE | 912.9% |
|---|
| ROCE | 105.41% |
|---|
| Profit Margin | 2.66% |
|---|
| Operating Margin | 4.03% |
|---|
| Gross Margin | 7.06% |
|---|