CNCT.L Regulatory News (CNCT)

29 May 2009 07:00



Smiths News PLC

Major Contract Win

Smiths News PLC, the UK's leading wholesaler of newspapers and magazines, is pleased to announce it has successfully negotiated a new five year contract with newspaper publisher Trinity Mirror. The total value of the contract is circa £183m per annum.

The new contract will be effective from October 2009 and will generate an annualised increase in sales revenue of circa £47m of which £5m is regional titles.

Mark Cashmore, Chief Executive of Smiths News PLC commented:

"This contract is great news for Smiths News and its customers. The new territories match those of our other recent contract wins, helping to create scale efficiencies that will benefit the whole supply chain. I'm particularly excited by the prospect of working with Trinity Mirror's regional titles, it is early days but this is an area where there is an obvious opportunity to create value for us both.'

'Over recent months we have won over £400m of new business, our priority now is to deliver this as efficiently and professionally as possible. Our plans are well advanced and I'm confident that our customers will experience a smooth transition."

John East, Head of Circulation Mirror Group, commented:

"We are delighted to be expanding our relationship with Smiths News. Their leading service offering and commitment to customer service has been a central driver to the award of this contract. We look forward to working in partnership to ensure a seamless transition."

Enquiries:

About Smiths News PLC:

Smiths News PLC comprises Smiths News, the UK's leading wholesaler of newspapers and magazines and Bertrams, a leading UK book wholesaler. The Group was formed on 1 September 2006 following the demerger of WH Smith PLC.

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 23,000 customers across England and Wales, supplying large general retailers as well as smaller independent newsagents. Smiths News has an approximate 40 per cent share of the magazine wholesaling sector and an approximate 36 per cent share of the newspaper wholesaling sector 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.

Bertrams, which was acquired on 20 March 2009, supplies books to a mix of independent booksellers, on-line and multiple retailers, and libraries. Bertrams has an approximate 45 per cent share of the wholesale book market. 

Smiths News PLC operates from 46 distribution centres across England and Wales, and employs 4,600 staff.