Menzies Distribution, the newspaper and magazine wholesaling division of John Menzies, has successfully renegotiated its contract with Marketforce, one of the UK's largest magazine distributors.

The agreement, which runs for five years from January 2015, will result in Menzies Distribution continuing to handle Marketforce's products across its UK network and secures £122 million of annual sales revenue.

Shares in Menzies rose 2p to 559p.

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David McIntosh, managing director of Menzies Distribution, said: "I am very pleased to have renewed terms with Marketforce which quickly follows our recent contract renewal with News Inter-national. This is a further positive event for Menzies Distribution and is testimony to our drive to deliver the high service levels demanded by our customers."

The seven-year £158m contract signed in August with News International, market leader with a 34% share, saw Menzies expand its footprint to include distribution of titles in Kent and Lancashire from October and in Northern Ireland from September 2013.

Last night it was confirmed Dermot Jenkinson, long-serving non-executive director at John Menzies with links to the founding family, sold 250,000 shares in the company at 594p.

The sale reduces Mr Jenkinson's holding by 0.41% to 8%, which is worth in the region of £28.87m.