New five year contract extension

RNS Number : 7436S

Smiths News PLC

05 December 2012

 



Smiths News PLC

Smiths News agrees new five year contract extension with both Marketforce (UK) Limited and IPC Media Limited

New contract secures c£154m of magazine distribution business

Smiths News PLC, the largest UK newspaper and magazine wholesaler, a leading UK book wholesaler and a leading distributor of consumable products to the education market, is pleased to announce it has reached agreement with Marketforce (UK) Limited and IPC Media Limited to extend their magazine wholesaling agreement until the end of 2019.

This new agreement secures Smiths News 55% market share of both Marketforce and IPC's portfolio of independent magazine publishers' existing magazine distribution business for an additional five years.

The extended agreement will secure c.£154m pa (at FY12 values) of magazine distribution revenues equating to 27.5% of the magazine market including titles such as What's on TV, Ideal Home, Marie Claire and Look.

Mark Cashmore, Chief Executive Officer, commented

"We are delighted to be extending our relationship with Marketforce and IPC, which further endorses our newspaper and magazine wholesaling model and reinforces our market leading position.

Today's announcement underlines the strength of our wholesale proposition and demonstrates the importance of our long term track record, on-going investment programmes and dedication to maintaining the highest levels of service excellence."

Enquiries:

Smiths News PLC Mark Cashmore, Group Chief Executive Nick Gresham, Chief Financial Officer	01793 563641
Buchanan Jeremy Garcia / Gabriella Clinkard	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 distributor of consumer and academic books in the UK and a growing player in international and digital 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 6% market share in large and growing markets.

 

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