Shares in Smiths News PLC (LSE:SNWS) jumped over 5% in early trade after it secured new long-term distribution contracts with Frontline and Seymour Distribution, expanding its exclusive wholesale distribution territories across Great Britain and extending the agreements through to April 2037.
The company said the contracts will take effect from April 2030 and are expected to deliver an incremental revenue uplift of approximately £105 million per year across the expanded territories.
Frontline is the UK's largest magazine distributor, while Seymour Distribution, part of the Frontline Group, is the UK's largest independent magazine distributor. Together, their portfolios account for more than 60% of the UK magazine market.
The new agreements follow the News UK and Associated Newspapers contract awards announced in June. Smiths News said the four contract wins together provide a substantial long-term volume base across the national newspapers and magazines market.
Chief executive Jonathan Bunting said: "We are delighted to announce our new contracts with both Frontline and Seymour, further reinforcing our long-term partnership with publishers and distributors, which ultimately maintains great service for millions of consumers across the UK.
"The new contracts continue to reinforce the importance of the printed magazine market, which our business model has successfully evolved to support, building a sustainable, efficient and resilient route to market for the magazine category, while maintaining service continuity for publishers and retailers."
Smiths News said the establishment of an expanded national distribution network will support the implementation of the four contracts.
It added that guidance on implementation costs, early-life transition costs, network expansion benefits, dividend policy and financing arrangements remains unchanged from its announcement on 17 June 2026.
The board said it expects to provide further guidance on the financial impact of all four contracts in due course and, in any event, when it reports preliminary financial results in November.
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