In summer 2012, he offered professional contracts to youth team players Malvind Benning, Ben George, Aaron Williams and Kieron Morris. He continued to add promising young players by bringing in 21-year-old winger Ashley Hemmings, 19-year-old former loanee Florent Cuvelier, 19-year-old winger James Baxendale, 20-year-old defender Paul Downing, 19-year-old striker Connor Taylor, 23-year-old striker Febian Brandy, in addition to 32-year-old right-back Dean Holden. He also brought in full-back James Chambers, twin brother of Adam Chambers. He also brought in a number of players on loan, including: Karl Darlow (21), Sam Mantom (20), Aaron McCarey (20), and Craig Westcarr (27). Mantom was made into a permanent signing in January. Smith signed a new two-and-a-half-year contract in October, keeping him at the club until summer 2015. This came after the club announced a £10,000 profit on the previous campaign as Smith's 'Total Football' approach yielded a mid-table position for the young Walsall team, in addition to praise from pundits and fans. A poor run of results saw the team slip to just above the relegation zone in mid-December. Walsall recovered to win four of their five games in January, as Smith was named as Manager of the Month. They ended the season in ninth place, six points outside the play-offs.