A Swindon-headquartered newspaper and magazine wholesaler has signed a 10-year delivery deal with the publisher of the Sunday Times and the Sun.
Transformational Agreement
Smiths News described the long-term contract with News UK & Ireland as 'transformational.' The deal will see the company distribute the publisher's titles across 'all of Great Britain' from July 2027.
The contract, worth an additional £125 million a year in revenue, includes conditions that must be satisfied ahead of next year, such as expanding Smiths News' national footprint.
'We are delighted to announce the extension and expansion of our partnership with News UK through to 2037,' said Smiths News chief executive Jonathan Bunting. 'This deepens a relationship spanning more than 50 years, securing a reliable and sustainable national route to market for retailers and consumers - and enabling us to freeze delivery service charges for our retail customers for the life of the contract.'
Mr. Bunting added that the deal marks a 'significant milestone' in securing 'a sustainable future' for print news distribution, reflecting a shared commitment to supporting the industry for years to come.
Implementation and Financial Outlook
Smiths News expects to incur one-off implementation costs during the 2027 financial year as it expands its footprint. The network growth will be funded using existing cash resources and financing arrangements, the company said.
Further guidance on the financial effects of the contract will be provided by the board at the time of its preliminary financial results on November 4. The board confirmed its intention to maintain ordinary dividend guidance for the 2026 and 2027 financial years at or above current consensus estimates of 5.2p per share.
Pension Scheme Concerns
The announcement comes four months after the UK pensions regulator (TPR) warned Smiths News that it could face a financial claim over the underfunded pension scheme of collapsed firm Tuffnells Parcels Express. TPR told Smiths News it was considering issuing a financial support direction, which would give it the power to require financial backing for an underfunded pension scheme, even where there has been no wrongdoing.
Smiths News owned Tuffnells Parcels Express for nearly six years until May 2020, before Tuffnells called in administrators in June 2023, leaving its pension scheme with a large deficit.
