Smiths News Plc reported on Monday that The Pensions Regulator issued a Warning Notice to the company on Feb. 20, 2026, in connection with the Tuffnells Parcels Express Pension Scheme. The firm said the development had been anticipated as a possible outcome in its most recent annual accounts.
Shares of the UK’s largest news wholesaler were trading lower following the announcement, down 2.6% at 03:43 ET (08:43 GMT).
According to the company filing, the regulator is assessing whether to issue a Financial Support Direction - commonly abbreviated as FSD - in respect of the Tuffnells Scheme. The filing characterises an FSD as operating under a 'no-fault' liability framework, which provides the regulator with extensive remedial powers. The Warning Notice also names a number of other parties connected to the scheme as potential targets of those powers.
Smiths News owned Tuffnells Parcels Express Limited - the employer tied to the Tuffnells Scheme - from December 2014 until May 2020. Following that period, Tuffnells entered administration. The Pensions Regulator states in the Warning Notice that the Section 75 debt for the Tuffnells Scheme - the statutory maximum the regulator can seek in aggregate from all identified targets - is currently estimated at 3,467,000.
The Smiths News board said it is reviewing the Warning Notice with its professional advisers and that it will have an opportunity to submit representations in response. Those representations will be evaluated by the regulator's case team before any referral is made to decide whether an FSD should be issued in relation to Smiths News. The company emphasised that it is too early to determine whether an FSD will be issued or the potential quantum of any liability.
In its filing, the board reiterated its position that Smiths News acted reasonably during the period it owned Tuffnells and stated that the company was an overall net contributor of funding to Tuffnells while it was the owner.
Summary
The Pensions Regulator has issued a Warning Notice to Smiths News concerning the Tuffnells Parcels Express Pension Scheme and is considering a Financial Support Direction under a no-fault liability regime. The estimated Section 75 debt is 3,467,000. Smiths News is reviewing the notice with advisers and will make representations; it says it is too soon to know whether an FSD will be pursued or what liability might result.
Key points
- The Pensions Regulator issued a Warning Notice to Smiths News on Feb. 20, 2026, related to the Tuffnells Parcels Express Pension Scheme.
- The regulator is considering issuing a Financial Support Direction, described as a no-fault framework that grants broad powers, and has named other parties linked to the scheme as potential targets.
- Smiths News previously owned Tuffnells Parcels Express Limited from December 2014 to May 2020; Tuffnells later entered administration. The Section 75 exposure is estimated at 3,467,000.
Risks and uncertainties
- Regulatory outcome is uncertain - it is not yet known whether an FSD will be issued against Smiths News or what any resulting liability would be; this affects the company directly and may influence investor sentiment in the wholesale and distribution sector.
- Section 75 exposure - the regulator's current estimate of the scheme's Section 75 debt is 3,467,000, which represents the maximum aggregate amount the regulator can seek from named parties.
- Other parties named - the Warning Notice identifies additional connected parties as potential targets, introducing further uncertainty around the allocation of any regulatory claim and potential market implications for linked businesses in logistics and pensions exposure.
Smiths News has said it will make representations to the regulator and is reviewing the matter with its advisers. Until the regulator's process runs its course, the company said it cannot predict whether an FSD will be issued or quantify any possible liability.