Market's view on Smiths News
Published on April 2024
- WH Smith’s business is now predominantly travel-related, maintaining stable high street circulation rates and cover prices.
- WH Smith reported an 8% revenue increase to £926m and a slight profit increase in their first half, from £45m to £46m.
- Sticker collectibles, especially those related to football, have high margins and have grown to represent about 5% of Group revenues, showing significant growth over the past two years.
- Unprecedented events like the 2022 FIFA World Cup and the State Funeral of Her Majesty the Queen boosted past sales, but similar events are not expected in the near future, which might present a buying opportunity after upcoming financial results are released.
- Expectations are set for the dividend and yield constraints due to banking facilities to be lifted soon with the clearing of debt, predicting a share price target of £1.
- The launch of Euro 24 football sticker collections is anticipated to bring significant additional revenue over the next three months.
- Smiths News is scheduled to announce its half-year results on 2 May 2024, with expectations of continued profitability and an unrestricted dividend by 2025 as debts are paid off.
- There is speculation about potential takeover interest in the company due to its perceived undervaluation.