Telegraph Media Group – National Contract Win

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 announce that it has successfully secured a new long-term exclusive contract with Telegraph Media Group Holdings Limited ("TMG"), publisher of 'The Daily Telegraph', and 'The Sunday Telegraph'.

The new agreement with TMG (the "Agreement") is another step in the transformational contracts secured in respect of exclusive national wholesale distribution which includes national newspaper publishers News UK and Associated Newspapers and the magazine distributors Frontline and Seymour. The Agreement is on enhanced commercial terms for Smiths News and includes (i) an expansion of the distribution territories in which the Company is appointed as TMG's exclusive wholesale distributor, securing national distribution of TMG's leading titles across all of Great Britain, to take effect from October 2027 and (ii) an extension in the contract term of our appointment through to September 2036. It represents an incremental uplift in revenue from the expanded territories of c.£40m per annum from October 2027.

Together with the contracts announced in June and July 2026, Smiths News has now successfully secured c.61% of the national newspapers and magazines market at the point at which those contracts commence.

As previously announced, key to the delivery of all five contracts secured to date will be the establishment of an expanded national footprint. Guidance around the implementation costs, early-life transition costs, benefits of network expansion, as well as dividend and financing arrangements, remains unchanged from our announcement of 17 June 2026. The Board expects to provide further guidance on the financial effects of all contracts in due course and, in any case, at the time of its preliminary financial results on 4 November 2026.

Jonathan Bunting, Chief Executive Officer of Smiths News, commented:

"We are delighted to announce the extension and expansion of our long-term partnership with TMG through to 2036. This represents another key step in expanding our network footprint to cover the whole of Great Britain, ensuring that consumers are able to access and consume news and magazine content for many years to come.

More importantly, this reinforces our position as a trusted partner across our industry and further secures a sustainable future for print media distribution, reflecting our shared commitment to supporting the industry over the long term."