21 May 2013 07:00
Smiths News PLC
Smiths News agrees five year contract extension with Telegraph Media Group
New contract secures c£137m of annual revenues
Smiths News PLC ('Smiths News'), the largest UK newspaper and magazine wholesaler, a leading UK book supplier and a leading distributor of consumable products to the education market, is pleased to announce it has reached agreement with Telegraph Media Group to extend their newspaper wholesaling agreement until October 2019.
This new agreement secures 63% market share of Telegraph Media Group's newspaper distribution business for an additional five years.
The contract is valued at c£137m pa (at FY12 values) equating to 15% of the national newspaper distribution market. Telegraph Media Group publishes The Daily Telegraph and Sunday Telegraph. Smiths News has now secured revenues through to 2019 equating to 32% of total sales.
Mark Cashmore, Chief Executive Officer, commented:
"We are delighted to have extended our relationship with Telegraph Media Group, securing another significant publisher agreement for our newspaper and magazine distribution business. Visibility of almost one third of revenues to 2019 reinforces confidence in our strategy and the ability of Smiths News to deliver sustainable profits in the medium term."
Enquiries:
Smiths News PLC | |
Mark Cashmore, Group Chief Executive | Tel: 01793 563641 |
Nick Gresham, Chief Financial Officer | |
Buchanan | |
Jeremy Garcia / Gabriella Clinkard | Tel: 020 7466 5000 |
About Smiths News PLC:
Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines, Bertram Books, a leading UK book wholesaler and The Consortium, a leading independent distributor of consumable products to the education and care markets.
Smiths News distributes newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. The business serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents. Smiths News has an approximate 55% share of the newspaper and magazine wholesaling market in the UK. In addition to its distribution activities, Smiths News collects and processes returns, supplies sales information to publishers and provides a range of services for its retail customers.
Bertram Books supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams is a leading supplier of consumer and academic books in the UK and a growing player in international, digital and direct to consumer markets.
In April 2012 the company acquired The Consortium. The Consortium is the UK's leading distributor of educational and care consumable products servicing 30,000 customers. The business has a 5% market share in large and growing markets.