SMITHS News, the largest newspaper and magazine distributor in the UK, yesterday said it won two contract extensions with a combined value of more than £320m, pushing shares up as much as 7.5 per cent.
The company said it had extended wholesaling agreements with Daily Mail publisher Associated Newspapers until October 2021 and with Comag, distributor for publishers such as Vogue and GQ, until December 2020.
Smiths News also reported a marginal increase in revenue for the 44 weeks to 6 July, helped by contribution from its 2012 acquisition of The Consortium, a distributor of consumable supplies to the education sector.
The company has been expanding its higher-margin book wholesaling business and diversifying into educational supplies, with the aim of generating half of its revenue from outside the newspaper and magazine business by 2016.
Total like-for-like revenues fell 4.6 per cent, in line with forecasts.
City A.M. Reporter