MENZIES Distribution, under scrutiny last week as John Menzies issued a profits warning, has reported a renewal of one of its bedrock contracts.
The newspaper and magazine wholesaling division of Edinburgh-based Menzies said it could confirm a successful renegotiation of its contract with the Trinity Mirror Group, which would see Menzies continue to distribute Mirror Group's portfolio of titles, as well as taking on distribution of Teeside Gazette.
The deal runs until 2019 and secures £150million of annual trade sales value.
Loading article content
Managing director David McIntosh said: "This renew-al is a further step in underpinning our core business. We now have contracts with six major publishing groups secured through to 2019 and this allows us to build for the future with confidence."
The deal is among the biggest in Menzies' core portfolio, just behind the £158m annual sales revenue of its News International agreement.
John Menzies said last week that disappointing returns from ancillary revenues and sticker collections, and weaker than forecast seasonal sales in the marketing services business, would impact second half profits. Joint house broker N+1 Singer lopped £3m off its operating profit forecast for the division, at £24.1m.