Smiths News — ‘Special’ dividend for a second year

Smiths News is delivering on its promises, with the core business operating to trend, supported by efficiency initiatives, and with collectables outperforming. This stability, and the receipt of £6.9m of one-offs, has allowed Smiths News to declare a ‘special’ dividend for the second year in succession. Furthermore, the new verticals are being established as trials prove concepts and new contracts are won. Confidence is building and the outlook for the core business of newspaper and magazines plus collectables is robust, with potential upside from the new verticals adding some gloss. We have lifted our forecasts and raised our valuation to 95p/share.