John Menzies delivering £240m contract renewals

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MAGAZINE and newspaper wholesaler John Menzies yesterday chalked up contract renewals worth a total of £240 million.

The Edinburgh-based company will continue handling titles for Associated Newspapers – which owns the Daily Mail and the Mail on Sunday – and magazines for Comag, a joint venture between Condé Naste and the National Magazine Company.

Comag, which was formed in 1977, uses wholesalers to distribute magazines including Elle, Penthouse and Vogue.

David McIntosh, managing director of Menzies Distribution, said: “I am very pleased to have secured terms with Associated and Comag.

“These renewals are a further step in underpinning our core business. We now have contracts with five major publishing groups secured through to 2019 and this allows us to build for the future with confidence.”

Menzies distribution arm has been over-shadowed in recent years by the growth of its airport services business, which handles baggage and carries out other operations globally.

In a trading update ahead of its half-year results, Menzies last week warned that it continues to be hit by a slump in magazine sales, caused by the lack of major “social or sporting events” so far this year. Yet the group still expects to hit full-year profit forecasts thanks to the performance of its freight handling unit.