Newspaper and magazine distributor Smiths News today declared it expects a £20 million sales boost because of the Olympics, the Diamond Jubilee and European football championships.
Chief executive Mark Cashmore described newspapers as “resilient” as 14 cover price rises across all titles helped to boost revenues 2.4% to £893 million in the last six months.
Cashmore also announced the £38 million acquisition of education and residential care supplier The Consortium, which is based in Trowbride, near Bath, and distributes basic items to 25,000 customers.
“It’s day-to-day stuff, exercise books, stationery, glue, paper towels — things that schools cannot do without,” said Cashmore.
“The headroom for growth is enormous,” he added, because all the political parties have committed to continue investing in education and healthcare.
Demographic changes should mean the number of schoolchildren and people in residential care will also grow in the long term.
The Consortium’s four main shareholders are the management team, led by chief executive Melanie Teal, who will share an initial £32 million cash windfall.
Less than three-quarters of Smiths’ profits will come from newspapers and magazines as a result of the takeover.
Half-year profits rose marginally to £18.8 million.
