Historic newspaper and magazine wholesaler Smiths News has delivered a “resilient performance” for the financial year after posting profits above market expectations.
The Swindon-headquartered business announced a special dividend for its shareholders on Tuesday as a result.
The 200-year-old firm, which has depots across the UK including in Gloucester, Bristol, Exeter, Yeovil and Redruth, reported revenues of £1.1bn for the year ending August 31, 2024 – up 1.1% on the year previously.
Adjusted operating profit rose to £39.1m for the period, which Smiths News said was supported by sales from the men’s UEFA European Championships and the extra week of trading. The company also decreased its average bank net debt by 53% to £11.7m.
Jonathan Bunting, chief executive, said: “Our performance over FY 2024 reflects the resilience of our news and magazines business and impact of our cost efficiency initiatives. The refinancing agreement announced in May removes restrictions on shareholder returns and also enables internal investment to support both our news and magazines business and our growth plans.”
With a final ordinary dividend of 3.4p per share and a further special dividend of 2p per share, Smiths News said it would return over £17.2m to shareholders for the 2024 financial year.
Looking ahead, the company said its three-year internal investment programme would “ensure the business” is positioned for growth.
The firm has 91% of existing publisher revenue streams secured subject to contract to 2029, which it said would provide the company with “stability” of revenues across the medium term.
“Our growth programme is centred around Smiths News’s asset-light, flexible cost base and our established competencies across reverse logistics, warehousing and early morning final mile services,” Mr Bunting added. “These position us well to drive profitability from complementary market opportunities in growth areas such as recycling, final mile and warehousing verticals.”