# Smiths News Plc new services will drive cash and dividend growth, expects Premier Miton

- Link: https://www.directorstalkinterviews.com/smith-news-plc-new-services-will-drive-cash-and-dividend-growth-expects-premier-miton/4121204199
- Published: 2025-06-25T13:43:00+01:00
- Author: Amilia Stone

**Smiths News Plc** (LON:SNWS) was discussed by Gervais Williams, Co-Fund Manager
of **[The Diverse Income Trust plc](https://www.directorstalkinterviews.com/company/the-diverse-income-trust-plc/divi.l)**(
[LON:DIVI](https://www.directorstalkinterviews.com/company/the-diverse-income-trust-plc/divi.l))
in a wide-ranging exclusive interview about the Trust and a selection of LSE-listed
companies in the DIVI portfolio.

**DirectorsTalk asked: Smiths News has made a solid start to 2025 with strong contract
renewals and stable trading. What are their key areas of focus for growth as you
look ahead?**

**Gervais said**, “I think that’s a good question because in a way, Smiths News 
are delivering newspapers and newspapers as an industry category are declining. 
There’s fewer and fewer people reading newspapers each year. So, they’ve got the
headwind effectively having the delivery of contracts with less and less volume 
per year.

What I’ve been impressed by in the Smiths News’s case is the management – they have
actually brought in new services. It’s those new services which are beginning to
pick up, e.g. high value recycling products. They may be moving into a couple of
new ideas where they can actually use those vans to pick up products which need 
an urgent collection, early in the morning. That is actually very interesting because
that’s the beginning, not just to offset the decline in turnover from the core newspaper
business, but actually grow sales, grow profits.

Along with costs savings they’ve had to make along the way, what’s been interesting
about this company is it hasn’t just survived, it’s thriving. We’re seeing its dividend
growing up; we see further cash generation going forward and we think because most
people assume it’s an industry which is in a permanent decline, they don’t see the
value of the upside.

So, we’re very upbeat about Smiths News and its potential to grow its dividend going
forward.”

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