Contract Win - Metro (London & South East)

RNS Number : 7935S

Smiths News PLC

12 November 2013

 



Smiths News PLC

Smiths News secures exclusive five year contract to distribute Metro in London and South East

Smiths News PLC ('Smiths News'), the UK's leading 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 secured an exclusive contract to distribute the daily free newspaper Metro across the whole of London and South East England.

The contract demonstrates the confidence of Metro in Smiths News' outstanding service offer to outsource its distribution to a third party.

The new contract will start in February 2014 and is for a period of 5 years.  The operation will see Smiths News deliver approximately 200 million copies per annum across the South East.  As the Metro is a free title there will be no incremental sales value, however Smiths News will receive a distribution fee.

This win follows on from c.£15m of new revenues already secured in the early part of FY2014, including gains from Trinity Mirror in Liverpool and Newcastle, which further supports our ability to maintain current levels of profitability in the Smiths News division.

Mark Cashmore, Chief Executive Officer, commented

"Today's announcement clearly demonstrates our ability to extend the scope of Smiths News' activities by winning one of the largest free title distribution contracts in the UK.

We are pleased with early progress in FY2014 and we continue to trade in line with our expectations."

Enquiries:

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

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.

The Consortium supplies consumable products to approximately 30,000 customers across the education and care markets.  The Consortium is a leading UK distributor with an approximate 5% share in a growing and fragmented market.

 

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