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LONDON (Alliance News) - Connect Group PLC said Monday its newspaper and magazine distribution division Smiths News has secured a new long-term contract with Daily Mirror publisher Reach PLC, worth around GBP220 million in annual revenue.
The new long-term contract with Reach is from October 2019 through September 2024 and covers all Smiths News' distribution territories, Connect Group said. The contract also covers Reach's regional press business and OK! magazine.
Reach accounts for around 25% of Smiths News's newspaper sales.
"The accelerated renewal of Smiths News' contracts is a strategic priority and we have now secured approximately 54% of our sales, including our largest newspaper and magazine partners. We are confident our remaining contracts can also be agreed, underpinning our plans for a sustainable recovery in the performance of the group," said Connect Group Chief Executive Jos Opdeweegh.
Shares in Connect Group opened 3.2% higher at 38.58 pence each. Reach shares were up 4.9% at 58.40 pence each.
