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Smiths News PLC on Wednesday announced a contract to ’extend and expand’ its partnership with News Corp’s News UK & Ireland Ltd. Smiths News shares were 7.3% higher at 68.00 pence on Wednesday afternoon in London. The Swindon, England-based newspaper wholesaler said the ‘transformational long-term contract’ grants it ‘enhanced commercial terms’. The deal includes its appointment as News UK’s exclusive wholesale distributor in additional distribution territories, ‘thereby effectively securing national distribution of News UK’s leading titles across all of Great Britain’ with effect from July next year. News UK’s publications include ’The Sun’, ’The Times’ and ’The Sunday Times’. Smiths News also said the agreement extends the contract term of its appointment through to July 2037. It said the contract represents an incremental revenue uplift from the expanded territories of around £125 million per annum, although it expects to incur early-life transition costs and one-off implementation costs during financial 2027 as it expands its distribution network. However, it expects to deliver the expansion through its existing cash resources and financing arrangements. ‘The network expansion is expected to provide a return on invested capital in excess of the company’s hurdle rate, and be accretive to earnings from FY2028 onwards,’ Smiths News added. The company confirmed that it intends to maintain its ordinary dividend guidance for both financial 2026 and 2027 at or above the current consensus estimate of 5.2 pence per share. It said it expects to provide further guidance on the financial effects of the contract with its preliminary results on November 4. ‘We are delighted to announce the extension and expansion of our partnership with News UK through to 2037,’ commented Chief Executive Officer Jonathan Bunting. ‘This deepens a relationship spanning more than 50 years, securing a reliable and sustainable national route to market for retailers and consumers - and enabling us to freeze delivery service charges for our retail customers for the life of the contract. ‘Smiths News has a long and distinguished record in print distribution and industry-leading service. Today’s announcement marks a significant milestone in securing a sustainable future for print news distribution, and reflects our shared commitment to supporting the industry for years to come.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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