John Menzies clinches key NI distribution contracts

THE newspaper and magazine wholesaling division of logistics group John Menzies yesterday said it had extended its contract with News International (NI).

The revised seven-year agreement will see Menzies Distribution expand its operations for the media company into Kent and Lancashire from October and in Northern Ireland from September 2013.

Menzies said it represented a significant contract renewal which “provides the division with a strong platform for future development”.

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It said NI’s titles represent 34 per cent of the total UK newspaper market and that the contract secures some £158 million of annual sales through to 2019. David McIntosh, managing director of Menzies Distribution, said: “I am very pleased that we have concluded negotiations with News International and that we will be expanding our relationship into new territories. This is a very significant contract renewal and allows us to plan positively for the future.”

Earlier this week John Menzies, which also operates an aviation services division, said it managed to grow profits in the first half despite weakening revenues and adverse currency movements.

Underlying profit before tax rose 1 per cent to £25.4m but the rise would have been greater on a stable currency basis. Shares in Menzies closed up 4p at 619p.