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Wholesaler Bertrams reported underlying profit before tax of £0.5m in the five months to the end of August, parent company Smiths News has said.
Bertrams was bought by Smiths News in March, in the period since then to 31st August the wholesaler had sales of £53.5m. Smiths News did not reveal comparable year-on-year sales or profit figures. It said that sales were "broadly flat, compared to a circa 1% year-on-year decline in the total sales of books to UK consumers". However, it added that the business was trading "ahead of expectations".
The trading statement said: "Bertrams continues to show every indication of being of an excellent strategic fit alongside our existing newspaper and magazine business. We are enthused about a number of commercial opportunities that exist and are committed to utilising Smiths News' strong relationships with publishers and multiple retailers across the UK."
Smiths News said the profit performance was "strong" given a lack of working capital in the business and the fact the trading period fell outside of the peak trading time.
Profit before tax at Smiths News fell £2.5m to £30.5m over the trading year. Sales increased 6.4% from £1.24bn to £1.3bn.The newspaper and magazine distributor bought Bertrams in March for £8.6m.
Bertrams' previous parent company, Entertainment UK, collapsed in November 2008 after Woolworths went into administration. Since takeover, Smiths News has injected at least £7m of working capital into the business and worked at returning Bertrams' stock levels to normal. During the period when Bertrams' future looked unclear, it had been trading on a pro-forma basis with the big five distributors.
Earlier this month Bertrams began offering DVDs to customers from its Bertrams Library Services' site in Leeds.