Smiths News said it expects full-year results in line with market expectations after a solid first half for the 26 weeks to 28 February versus the 26 weeks to 1 March 2025.
Revenue fell 3.9% year on year to £515.7m while adjusted operating profit was £18.3m (HY2025: £19.4m) and adjusted profit after tax was £12.7m (HY2025: £13.1m).
The group generated strong free cash flow of £21.2m (HY2025: £13.3m), which included a £7.6m working capital timing benefit, and said it is on track to deliver operational efficiencies in excess of £4m in FY2026.
Investment in growth verticals powered a 35% increase in revenues in the period, with Recycling revenues up more than 50% and book distribution running at about 30,000 books per week.
Smiths News said it has secured 96% of its newspapers and magazines revenues through to 2029 after renewing a long-term contract with the Guardian Newspaper Group and reported continued strength in collectables supported by Pokémon and the FIFA Men's World Cup.
"We are pleased to report a solid start to the financial year, with positive momentum across the business," said Jonathan Bunting, Chief Executive Officer.
The board declared an interim dividend of 1.75p per share payable on 3 July.
