You are viewing your 1 free article this month. Login to read more articles.
Wholesaler Bertrams is in consultation with 140 staff at its library supply business in Leeds over its possible relocation to Norwich. The move was revealed in Smith News' interim results, released this morning.
Bertrams' revenues totalled £75.8m in the half year to 28th February, which Smiths News said followed a "good autumn on the back of strong international sales". It added that the business traded well over the Christmas period, driven by growth in internet sales, and was also boosted by the 'back to university' period last autumn. The wholesaler's operating profit of £2.4m was ahead of expectations and "significantly ahead" of the £0.7m achieved in the equivalent period last year, before it was bought by Smiths News.
Mark Cashmore, group chief executive, said: "Bertrams continues to perform ahead of our expectations and is now well placed to capitalise on growing its online, academic and international sales." Cashmore said the business had recently won a new two-year book contract with HMV.
Smith News said the relocation of its library arm "would reduce costs, but just as importantly it would improve service by reducing the lead time for the processing of library books, one of the key measures of service identified by the library consortia".
But Bertrams m.d. Michael Neil stressed to The Bookseller that staff were still only in "consultation", which would go on until July, with no final decision yet made. Neil said the reason behind the move was the likely cuts to public sector finance. "We need to ensure we do all we can with Bertrams Library Services to make it as efficient as possible bearing in mind here will be public sector cuts. We can plan now, look at the options and speak to staff and understand what we need to do, or we can wait until the cuts happen. It is more sensible to do it now."
Overall revenue at Smiths News rose 51% to £919.8m, with profit before tax £15.3m, up 43%.