The Swindon-based wholesaler said its collectables division played a key role in lifting adjusted operating profit to £39.1 million in the financial year ending August 2025.
The growth helped offset ongoing declines in newspaper and magazine sales.
The company, which supplies around 24,000 retailers across the UK each morning, said the shift in consumer interest towards collectables was reshaping its business.
The trend is being fuelled by adult buyers, known as “kidults”, and boosted by popular franchises such as Pokémon and major football tournaments.
Smiths News delivered 16 percent revenue growth in new business areas, with collectables making a significant contribution.
It also achieved £4.9 million in efficiency savings during the year and strong cash generation of £36.1 million, supporting both investment and shareholder returns.
The firm has proposed a final ordinary dividend of 3.80 pence per share, bringing the total to 5.55 pence, along with a special dividend of 3.0 pence, due to be paid in February 2026.
Chief executive Jonathan Bunting said the business is well-positioned for future growth.
“I am delighted Smiths News has delivered such a strong financial and operational performance across the year, reinforcing the ongoing confidence we have in our business.
“Our strategic priorities remain steadfast as we seek to both leverage and expand our unique UK operating footprint.
“In addition, our existing capital allocation policy has provided us with the flexibility to both invest in our new business verticals alongside distributing funds to shareholders.
“Finally, I would personally like to thank everyone at Smiths News for their dedication and hard work, which collectively, sits at the heart of our ongoing success.”
Looking ahead, the company expects another strong year as the Men’s Football World Cup and Pokémon’s 30th anniversary in 2026 are expected to boost demand.
