John Menzies has said its newspaper and magazine wholesale arm, Menzies Distribution, traded in line with expectations over the past three months.
Newspaper and weekly magazine sales had been disappointing, the group said, but this was offset by an improved performance from monthly magazines.
Cost initiatives continued to make a positive contribution and plans were underway to rationalize the branch network following the increased business won last year from Dawson News, the company added.
Last week rival Smiths News announced a surge in first-half profits of 43% following gains of its own from Dawson, which fell into administration last year.
Smiths celebrates Dawson effect as new finance chief signs on (22 April 2010)
Dawson demise helps Menzies to a ‘stellar year’ (13 March 2010)