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:
£159M
Payout Frequency: Semi-Annual
Smiths News Dividend Analysis and Summary
Declared Dividend
- Type: Interim dividend
- Amount: 1.75 pence per share (unchanged vs HY2025)
- Ex-dividend date: 04/06/2026
- Record date: 05/06/2026
- Payment date: 03/07/2026
- Cash cost: c. £4.3m (company estimate)
- Dividend policy: maintain ~2x cover on the ordinary dividend and make further returns when prudent
Recent Shareholder Returns (context)
- FY2025 final ordinary dividend: 3.8p (paid 5 Feb 2026)
- FY2025 special dividend: 3.0p (paid 5 Feb 2026)
Coverage and Cash Generation
- HY2026 adjusted EPS: 5.2p; interim DPS cover by HY adjusted EPS ˜ 3.0x.
- HY2026 adjusted PAT: £12.7m vs interim dividend outlay £4.3m ? payout ratio ˜ 34%.
- HY2026 free cash flow: £21.2m (c. 4.9x interim dividend), noting a £7.6m working-capital inflow that may normalize.
- Balance sheet: period-end Bank Net Cash £7.8m; average Bank Net Cash £16.2m; leverage (Bank Net Debt:Bank EBITDA) -0.3x.
Operational and Contractual Support
- 96% of newspaper and magazine revenues now contracted to 2029 (incl. Guardian renewal), supporting cash flow visibility.
- Growth verticals revenue up 35% (recycling >50%), with further operational efficiencies of >£4m targeted in FY2026.
- Full-year outlook: in line with market expectations; positive H2 drivers (collectables, World Cup).
Structural/Policy Notes
- No M&A, demerger or share consolidation disclosed.
- Revolving Credit Facility maturity extended (post period) to May 2029, adding financing certainty.
- Board reiterates ordinary dividend at ~2x cover and openness to additional returns when prudent.
Risks and Flags for Dividend Stability
- Pensions Regulator Warning Notice (Tuffnells): tPR considering a Financial Support Direction. s75 deficit cited at £3.467m (aggregate cap across all potential targets). Outcome and amount uncertain; currently a contingent liability. Potential headwind to future specials/extra returns if crystallised.
- Earnings drift: HY adjusted EPS down to 5.2p (-3.7% YoY). Still ample cover for the interim, but watch trajectory vs a 2x full-year cover target.
- Working-capital timing: HY FCF benefitted from a £7.6m inflow; partial unwind could temper H2 cash conversion.
- Structural print decline persists (revenue -3.9%), mitigated by price/mix, contracts and efficiencies; sustained execution in growth verticals needed.
- Cost pressures (e.g., National Insurance, wage inflation) and execution risk on technology/operations programmes could compress margin if not offset.
Analyst’s View: Sustainability and Growth Trajectory
- Sustainability: The interim dividend appears well-covered by earnings and FCF, backed by net cash, ample RCF headroom and long-dated publisher contracts. Policy discipline (2x cover) is appropriate given modest EPS pressure.
- Growth: Near-term dividend growth looks flat to modest (interim unchanged). Upside to total returns remains via specials if net cash persists and the tPR risk resolves benignly.
- Support from capital allocation: Recent sizeable returns (ordinary + special) alongside continued investment in efficiency and growth verticals suggest balanced capital allocation. Any adverse tPR outcome would likely constrain discretionary returns before it challenged the ordinary dividend under current trading.
Read more
Smiths News Annual Dividend Yield - 13.32%
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 |
| 04/06/2026 |
03/07/2026 |
Interim |
1.7500p |
GBX |
Total (Annual Dividends Per Share):
8.55p
Dividend Yield =
Annual Dividends Per Share (8.55p)
÷ Share Price (64.2p)
= 13.32%
Smiths News Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/06/2026 |
03/07/2026 |
Interim |
1.7500p |
GBX |
| 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 |
77.41%
|
| Buyback Yield |
0.48%
|
| Shareholder Yield |
13.79%
|
| P/E Ratio (TTM) | 6 |
|---|
| Forward P/E | 6.14 |
|---|
| P/FCF | 2.96 |
|---|
| Earnings Yield | 17.38% |
|---|
| FCF Yield | 33.79% |
|---|
| ROE | 1350% |
|---|
| ROCE | 116.76% |
|---|
| Profit Margin | 2.59% |
|---|
| Operating Margin | 3.81% |
|---|
| Gross Margin | 7.21% |
|---|