Smiths News looking beyond newspapers

Smiths News, the largest UK newspaper and magazine wholesaler, saw flat profits in the first half but said it was on track for 2012.

In the six months to the end of February, the firm posted pre-tax profits of £18.8m, up 0.5% on the year before.

Earnings per share came in at 7.6%, the same as last year, but the firm pushed up its dividend 7.7% to 2.8p.

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It also announced it will splash out £38m on Hedgelane Limited, whose principal subsidiary trades as The Consortium for Purchasing and Distribution.

The Consortium distributes products such as stationery, art and craft, janitorial and curriculum products to the educational market.

Smiths said it was looking to expand beyond its core magazine and newspaper markets and become a leading specialist distributor.

"The Consortium is a profitable, cash generative business that is expected to add an additional £64m sales and £7m EBITDA to Smiths News on a pro forma full year 2012 basis," the firm said.