13 Oct 2020 07:00
13 October 2020
Connect Group PLC
("the Company" or "the Group")
Publisher Contract Win
New contract with Associated Newspapers
The Company is pleased to announce that Smiths News has agreed a new five-year contract with Associated Newspapers, publisher of the Daily Mail, The Mail on Sunday and the i newspaper. The exclusive agreement encompasses all our existing distribution territories, securing annual revenues of circa £175m at current market values, accounting for 15.9% of our sales.
The Company has now secured over 95% of total newspaper and magazine revenues under new long-term contracts until at least 2024, with the remaining revenues within Smiths News largely representing smaller publishers and operating on rolling agreements.
Commenting on today's announcement, Jonathan Bunting, Chief Executive Officer, said:
'I'm delighted that we have secured a new agreement with Associated Newspapers, completing our goal of renewing all our major contracts. The certainty this brings to our network will underpin our plans for further efficiencies and provides the Company with good visibility of future revenue and cash flow.'
Enquiries:
Connect Group PLC
Jonathan Bunting, Chief Executive Officer
Tony Grace, Chief Financial Officer
Investor.relations@connectgroupplc.com
www.connectgroupplc.com
Buchanan (Financial PR)
Richard Oldworth / Jamie Hooper
connect@buchanan.uk.com
www.buchanan.uk.com
Person responsible for arranging release of this announcement:
Stuart Marriner, General Counsel & Company Secretary
Connect Group PLC
Rowan House
Cherry Orchard North
Kembrey Park
Swindon
SN2 8UH
email: cosec@connectgroupplc.com
LEI: 2138004O33ONVOOQXB02
About Connect Group
Connect Group PLC is a UK based specialist distributor. The Group's core businesses are each leading players in their markets:
Smiths News is the UK's largest newspaper and magazine wholesaling business with an approximate 55 per cent. market share. It distributes newspapers and magazines on behalf of the major national and regional publishers, delivering to approximately 25,000 customers across England and Wales on a daily basis. The speed of turnaround in the UK and density of Smiths News' coverage is critical to one of the world's fastest physical supply chains.
Dawson Media Direct (DMD) supplies newspapers, magazines and inflight entertainment technology, to airlines and travel points in the UK and worldwide. Delivering to strict time windows with security accreditation, DMD serves circa 115 airports in 47 countries.