At Smiths News, our values are at the heart of everything we do.
We believe our business should be founded on trust and great service while growing in partnership. We are committed to ensuring that all our activities give expression to these clear principles. That way, our company can continue to offer industry-leading expertise in a complex supply chain.
With 55% market share, we are the largest player in what is a highly specialised operation. Working with exclusive area contracts, we have long-term relationships with all of the UK’s major publishers, providing a shared route to market, adding further value through the provision of services that are complex and costly for others to replicate.
Our strategy continues to be founded on our leadership and expertise in newspaper and magazine wholesaling. Maximising our core competencies, we work to secure continual improvement that delivers value for all stakeholders. We have an excellent track record of achieving this and are confident in our ability to continue to do so.
The simplification of the Company following the sale of Tuffnells in May 2020, has provided an opportunity for a significant reduction in central costs, as well as removing the drag on cash and profitability created by its loss-making performance. Much progress has been made and, with a leaner operating model, the business is well placed to continue its quest for efficiencies that offset the structural decline in core sales.
From a financial perspective, we aim to deliver attractive returns to shareholders, underpinned by our long-term contracts and relatively predictable cash flows. The Board continues to take a prudent approach to capital management, balancing a priority commitment to reducing net debt with the payment of regular dividends, while continuing to meet the investment needs of the business.
Our strategy remains open to the potential for opportunities that dovetail with the core skills and infrastructure of Smiths News. We are clear, however, that any such opportunities must meet strict investment criteria that are compatible with our prudent capital management objectives.