Smiths News (LSE:SNWS) now expects results for the 52 weeks ended 29 August to come in ahead of market expectations, having previously guided to results in line with consensus at its half-year update in May.
The UK's largest news wholesaler said stronger-than-expected demand for collectables in the second half, including a record contribution of more than £3m from the Men's FIFA World Cup, boosted its news and magazines business over the year.
Current analyst consensus for FY2026 adjusted operating profit stands at £37.2m, against which the company says it now expects to perform ahead.
Smiths News booked adjusted operating profit of £18.3m in the first half on revenue of £515.7m, itself down 3.9% year-on-year, with growth verticals including recycling and book distribution already driving momentum ahead of the World Cup boost.
The group has entered its 2027 financial year trading positively and has begun a transformational programme to build a national distribution footprint, ahead of the first contract go-live in July 2027.
That expansion follows a run of long-term distribution wins secured in the second half, with News UK, Associated Newspapers, Frontline and Seymour agreements together expected to add substantial recurring revenue as wider territories take effect between 2027 and 2030.
"The national contract awards with News UK, Associated Newspapers, Frontline and Seymour are significant milestones for Smiths News," said chief executive Jonathan Bunting, adding the group is "well positioned for growth in the coming years."
The company will provide further guidance on the financial effects of the network expansion alongside its FY2026 results, due on 4 November.