Connect Group PLC (LON:CNCT) said its Smiths News unit has agreed on a new long-term contract with Daily Express and Daily Mirror newspapers group Reach PLC (LON:RCH) from October 2019 through to September 2024.
The FTSE Small cap group noted that the agreement secures annual revenues of circa £220mln at current market values and encompasses all Smiths News' distribution territories
Reach's national newspaper portfolio also includes the Sunday Mirror, People, Daily Star, Sunday Express and Daily Star Sunday.
Connect said the contract also covers Reach's regional press business and OK! Magazine and, in total, Reach accounts for approximately 25% of Smiths News' newspaper sales.
Jos Opdeweegh, Connect's chief executive officer, commented: The accelerated renewal of Smiths News' contracts is a strategic priority and we have now secured approximatively 54% of our sales, including our largest newspaper and magazine partners.
“We are confident our remaining contracts can also be agreed, underpinning our plans for a sustainable recovery in the performance of the Group."