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Wholesaler Bertrams is looking at acquisitions to grow its book and library supply businesses, after it posted a small profit in its most recent trading period.
As reported last week, Bertrams recorded a profit of £500,000 for the five months until the end of August, according to results released by its parent company, Smiths News. The wholesaler recorded sales of £53.5m during the period. It has also been buoyed by recent contract wins to supply books to the Daily Mail and two library supply contracts in Scotland. The deals are believed to be worth around £3m.
Bertrams managing director Michael Neil said "the business performed very well", especially given how precarious its future seemed when its previous parent company Woolworths collapsed last November. Bertrams was finally acquired by Smiths News in March in a deal worth £8.6m.
Neil said there were three main reasons for the business' recovery. One was that it built its stock levels back far quicker than expected following the takeover. The wholesaler had experienced supply difficulties while its future looked unclear at the beginning of 2009. The big five distributors were trading with it on a pro-forma basis at one point.
Neil said: "When Smiths News bought us, we were running at around half capacity. I thought it would take around four months to get it right, but our stock situation was sorted within six weeks."
He added that the business was "very lucky" customers did not desert the business while it was experiencing problems. The final reason was that he felt the recession has not hit the book trade as heavily as other retailers.
Neil was bullish about the year ahead. "There are a lot of very good books for bricks and mortar and online bookshops." Particular focus will be made on building its Independent Buying Group business for indies as well as "acquisition opportunities". "There's lots more we want to do," he added.