5yr contract extension with Guardian News & Media

RNS Number : 4366S

Connect Group PLC

24 September 2014

 



Connect Group PLC

('Connect Group' or "the Group")

Smiths News agrees five year contract extension with Guardian News and Media

New contract secures c£63m of annual revenues

Connect Group PLC ("the Group") a leading specialist distributor operating in three divisions; News & Media, Books and Education & Care, is today delighted to announce Smiths News, the UK's leading newspaper and magazine wholesaler, has reached an agreement with Guardian News and Media  to extend their newspaper wholesaling agreement until February 2021.

The new agreement secures the existing 60% market share of Guardian News and Media's distribution business for an additional five years.

The contract is valued at £63m pa (at FY14 values) equating to 7% of the national newspaper distribution market. Guardian News and Media publishes both The Guardian and The Observer which sell 180,000 and 200,000 papers per day respectively.

Following this extension, Smiths News has now secured c.£1.2bn of revenues per annum (at FY14 values) through to 2019 equating to 84% of total sales. 

Mark Cashmore, Chief Executive Officer, commented

"We are delighted to have extended our relationship with Guardian News and Media, securing another significant publisher agreement for our newspaper and magazine distribution business. With 84% of newspaper distribution revenues secured to 2019 and beyond, this further endorses our market leading proposition."

Enquiries:

Connect Group PLC
Mark Cashmore, Group Chief Executive	Tel: [phone]
Nick Gresham, Chief Financial Officer
Buchanan
Jeremy Garcia / Gabriella Clinkard	Tel: [phone]

About Connect Group PLC:

Connect Group PLC is a leading specialist distributor operating in large and diverse markets. The Group has three separate divisions, connecting suppliers to customers in an efficient, knowledgeable and service oriented way:

Connect News & Media - Encompassing: Smiths News, the UK's largest news wholesaling business with an approximate 55% market share, distributing newspapers and magazines on behalf of all the major national publishers as well as a large number of regional publishers. Smiths News serves approximately 30,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents; and Dawson Media Direct, an international media direct business supplying newspapers, magazines and inflight entertainment technology and content to over 80 airlines in 50 Countries,

Connect Books - Combining a number of recognised brands in print and digital bookselling, including Bertram's, Dawson Books and Wordery. A leading distributor of physical and digital books, the division serves over 8,200 customers in approximately 100 countries, with over 200,000 in stock titles and access to over a further 7 million consumer and 20 million academic titles,

Connect Education & Care - A leading independent supplier of consumables through The Consortium and West Mercia Supplies with an approximate 5% market share. The division serves over 30,000 customers with an extensive range of over 40,000 products across a branded, own brand and value range, including stationery, arts and craft and cleaning.

 

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