Statement re Tuffnells Parcels Express Pension

Smiths News (LSE: SNWS), the UK's largest news wholesaler and a leading provider of early morning end-to-end supply chain solutions, confirms that on 20 February 2026 it received a Warning Notice ("WN") from the UK Pensions Regulator ("tPR") in relation to the Tuffnells Parcels Express Pension Scheme ("Tuffnells Scheme"), the possibility of which was disclosed in the Company's last annual accounts (see Note 20).

The WN explains that tPR is considering issuing a Financial Support Direction ("FSD") against Smiths News in relation to the Tuffnells Scheme. An FSD is based on a 'no-fault' liability-regime and forms part of tPR's wide-ranging powers. In addition to Smiths News, a number of other parties connected to Tuffnells are identified in the WN as potential targets of tPR's powers.

Smiths News owned Tuffnells Parcels Express Limited ("Tuffnells"), the sponsoring employer of the Tuffnells Scheme, between December 2014 and May 2020. Tuffnells entered administration on 12 June 2023.

TPR has stated in the WN that the Section 75 debt of the Tuffnells Scheme, which is the maximum amount tPR can seek in aggregate from all targets, is now estimated at £3,467,000.

The Board is reviewing the WN with its advisers and will have an opportunity to make submissions to tPR in response. These will be considered by tPR's case team and then referred to a Determinations Panel before any decision is made as to whether an FSD should be issued against Smiths News, and if so, in what form or for what value. It is therefore too early to know if an FSD will be issued, or the amount or form of any such support.

The Board maintains the view that Smiths News acted reasonably throughout its time as parent of Tuffnells and that it was an overall net contributor of funding to Tuffnells during its period of ownership.