Smiths News, the historic Swindon-headquartered newspaper wholesaler, has secured a new long-term contract with Daily Mirror and Daily Express publisher Reach.
The agreement is for all of Smiths News’ current distribution territories in the UK through to 2029, representing revenues of around £160m a year at current market values.
Reach is the UK’s largest commercial news publisher, with more than 120 media brands including BusinessLive as well as newspapers such as the Western Daily Press, Bristol Post and Manchester Evening News.
Smiths News said on Tuesday (December 10) it had now “formally secured” long-term contracts with 91% of its newspaper and magazine revenues for the next five years.
Jon Bunting, chief executive of Smiths News, said it would provide the business “underlying revenue stability” in addition to creating a “robust platform” from which to support the company’s growth ambitions.
He said: “I am delighted that we have now formally concluded our new contract negotiations with Reach and look forward to ensuring the widespread access and availability of their titles for readers in communities across the UK. The extent of our contracts with major titles continues to demonstrate the pivotal role Smiths News plays in the early morning supply chain.”
Last month, Smiths News announced a special dividend after delivering a “resilient performance” for the financial year. The 200-year-old firm, which has depots across the UK including in Gloucester, Bristol, Exeter, Yeovil and Redruth, reported revenues of £1.1bn for the year ending August 31, 2024 – up 1.1% on the year previously.
Adjusted operating profit rose to £39.1m for the period, which Smiths News said was supported by sales from the men’s UEFA European Championships and the extra week of trading. The company also decreased its average bank net debt by 53% to £11.7m.