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(Sharecast News) - Smiths News lifted its full-year outlook on Tuesday following a particularly strong second-half performance.
The news wholesaler said results for the year to 29 August are set to be ahead of market expectations for adjusted operating profit of £37.2m.
The company said demand for collectables was stronger than expected in the second half, with a record contribution from the Men's FIFA World Cup of over £3m, boosting the overall performance of the news and magazines business. It pointed out that international football competitions typically enhance the group's performance in alternate years due to timing of the FIFA World Cups and UEFA European Championships.
"Moving into FY2027, trading has started positively and the company has begun its transformational programme to establish a national distribution footprint to service the new contract wins announced in H2 FY2026, ahead of the first go-live in July 2027," it said.
Chief executive Jonathan Bunting said: "I am pleased to report positive momentum across the business in FY2026, with results now expected to exceed market expectations, driven by a particularly strong performance in the second half of the year.
"The national contract awards with News UK, Associated Newspapers, Frontline and Seymour are significant milestones for Smiths News and reflect our ongoing commitment and focus on delivering a best-in-class service to our customers, alongside strengthening our long-term relationships with publishers and retailers.
"With the distribution footprint expanding to deliver national coverage in 2027, alongside our strategy to grow other areas like recycling that complement our offering, the group is well positioned for growth in the coming years."
At 1010 BST, the shares were up 4.2% at 70.46p.
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