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.

Strategy

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.

Expertise

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.

Focus

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.

Value

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.

Potential

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.

Our business model is underpinned by both the breadth of our operations and the depth of our experience and expertise in news wholesaling.

The UK’s newspaper and magazine market remains large and resilient, albeit challenged by a structural decline of sales volumes. To deliver sustainable returns, we must therefore find efficiencies to offset the reduced gross margin from our core sales on an annual basis.

In pursuing this task, we are aided by the scale of our operation, together with the relative predictability of our sales and costs. The security afforded by long-term contracts further supports long-term planning for the delivery of efficiencies that underpin our profit and cash flow.

Our business model is therefore founded on a combination of performance and value drivers, supported by a commitment to proactive market leadership.