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

Next Smiths News Dividend

Smiths News next goes ex-dividend on 04/06/2026. This will be the Interim dividend for 2026.

The dividend per share amount is 1.7500p (GBP) and the payment date is 03/07/2026.

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)

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.

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 (67.4p) = 12.69%

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

Number of Shares:

Payment	Paid	Amount
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