Smiths bags 137m pound Telegraph deal

Newspaper distributor Smiths News has bagged a five-year contract extension with Telegraph Media Group.

The new deal is worth roughly £137m of Smiths' annual revenues and will see the company provide newspaper wholesaling services to the Telegraph until October 2019.

Smiths said the new agreement had secured around a third of its total sales through to 2019.

The contract extension equated to 15% of the national newspaper distribution market and secured 63% market share of Telegraph Media Group's newspaper distribution business for an additional five years.

Smiths' Chief Executive Officer Mark Cashmore said: "We are delighted to have extended our relationship with Telegraph Media Group, securing another significant publisher agreement for our newspaper and magazine distribution business.

"Visibility of almost one third of revenues to 2019 reinforces confidence in our strategy and the ability of Smiths News to deliver sustainable profits in the medium term."

Shares in Smiths News were up 0.2% to 170.75p on Tuesday.

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