Edison Investment Research - Smiths News (SNWS) Smiths News - On track to meet guidance

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Edison Investment Research

Toby Thorrington

Smiths News - On track to meet guidance

Smiths News’ trading update highlights the resilience of its business model in a tough macroeconomic environment, with FY24 results expected to be in line with consensus. As a reminder, our 2024e PBT forecast stands flat at £33.4m despite an anticipated 6% y-o-y decline in revenue to £1.0bn, attributable to management’s tight control of the business and the ongoing annual efficiencies being delivered. Smiths has renewed several long-term publisher contracts in the past year, which could imply visibility over c 74% of annual revenues to 2029, with potential for expansion. This should further bolster the company’s cash-generative business model and underpin the sustainability of the business in the long term.

31/01/2024 1 EN

Underlying

Smiths News

Connect Group is a distributor operating in early distribution and mixed freight. Co. connects suppliers to customers. Co.'s operating segments are: News and Media: News Distribution, News and Media: Media, and Mixed Freight. Co.'s News and Media: News Distribution segment is a U.K. distributor of newspapers and magazines. As of Aug 31 2017, the segment distributed newspapers and magazines to 27,000 retailers across England and Wales from 39 distribution centers. The News and Media: Media segment is a supplier of newspaper and magazines to airlines and a provider of inflight services. The Mixed Freight segment is a provider of next day B2B delivery of Mixed Freight consignments.

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GB00B17WCR61 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Toby Thorrington

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Smiths News - On track to meet guidance

Smiths News - FY24 trading good, special dividend proposed

Smiths News - Refinancing releases dividend shackles

Electro Optic Systems - Growth from defence

Smiths News - FY24 trading good, special dividend proposed

IRLAB Therapeutics - Progress across the pipeline in Q324

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