3rd Aug 2009 11:49
JOHN MENZIES PLC STARTS DISTRIBUTION CONTRACTS EARLY
JOHN MENZIES PLC previously announced that MENZIES DISTRIBUTION, its newspaper and magazine wholesaling division, had been successful in securing a number of significant publisher contract gains. These contracts were to be phased in over the next eighteen months. Menzies can today confirm that these contracts, in areas previously covered by Surridge Dawson Limited (In Administration), have commenced with immediate effect.
To facilitate the early start of these contracts, Menzies Distribution has signed agreements for the temporary lease of premises and systems support, as well as acquiring certain wholesale distribution assets from Surridge Dawson Limited (In Administration) for a total consideration of 500,000.
Consequently, we now expect to see the benefit of these contracts earlier than originally anticipated, however they will not have any positive impact in 2009 due to start up costs.
For further information:
Paul Dollman, Group Finance Director, John Menzies plc +44 131 459 8018
John Geddes, Group Company Secretary, John Menzies plc +44 131 459 8180
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