Post Year-End Trading Update

Commenced transformational programme to establish a national distribution footprint

Smiths News (LSE: SNWS), the UK's largest news wholesaler and a leading provider of early morning end-to-end supply chain solutions, is pleased to report that it expects to deliver results for the 52-week period ended 29 August 2026 ("FY2026" or the "Period") ahead of market expectations*.

In the second half of FY2026 demand for collectables was stronger than expected, with a record contribution from the Men's FIFA World Cup of over £3m, bolstering the overall performance of the news and magazines business in the Period. 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.

The Company intends to provide further guidance on the financial effects of this network expansion at the time of its FY2026 results, which will be announced on Wednesday, 4 November 2026.

Jonathan Bunting, Chief Executive Officer, commented:

"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."

*Company compiled analyst consensus can be found on Smiths News' website - Analyst consensus. Current adjusted operating profit market expectation for FY2026 is £37.2m.