SN 5yr Contract Extension with Frontline & Seymour

RNS Number : 2033F

Smiths News PLC

22 April 2014

 



Smiths News PLC

('Smiths News' or "the Group")

SMITHS NEWS AGREES NEW FIVE YEAR CONTRACT EXTENSION WITH FRONTLINE AND SEYMOUR

New contract secures c.£215million of annualised 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 Frontline and Seymour to extend their magazine wholesaling agreement until April 2020.

This new agreement secures 42% share of the magazine market for an additional five years. The contract is valued at c.£215m pa (at FY14 values) equating to 15% of the total national newspaper and magazine distribution market. Frontline distribute titles from publishers H Bauer, Immediate Media and Haymarket, while Seymour distribute magazines on behalf of many publishers including Future Publishing and Dennis Publishing.

Smiths News has now secured c.£1.1billion per annum of revenues through to at least 2019, and in some cases beyond, equating to 77% of total sales.

Mark Cashmore, Group Chief Executive, commented:

"Today's announcement extends our relationship with two of our largest magazine distributors. With 90% of magazine distribution revenues secured to 2019 and beyond, our market leading proposition is now secured for the long term".

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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