Within Menzies Distribution, the focus was on the integration of new territories gained in 2009, whilst developing and refining its new revenue streams into Menzies Marketing Services.

In 2011, Menzies Distribution will consolidate its position as the leading provider within the Newspaper and Magazine distribution market. The business will continue to focus on operational efficiency and this will be aided by the roll out of SAP to the branch network. In addition, the development of new service offerings such as Menzies Marketing Services will continue as the division secures new, adjacent, revenue streams.

Menzies Distribution is a very strong business that operates within a two-player market. Core revenues are contracted through until 2014.

We aim to maintain our position and build into new adjacent businesses. To do this we will follow a three-step strategy:

• Execute - Deliver rationalisation opportunities that have arisen from new business wins
• Redesign - Evolve our operating model to meet the changing marketplace
• Diversify - Expand adjacent revenue opportunities through Menzies Marketing Services

Achievement against objectives for 2010

Menzies Distribution was focused on integrating the new business gained during 2009. They aimed to continue to focus on cost and productivity initiatives, and exploring growth opportunities that exist with adjacent businesses and which can benefit from our unique publisher and retailer relationships.

• Launch of Menzies Marketing Services, bringing together four existing businesses under a single banner. This move is designed to bring greater management control and strategic vision to the ventures and also to identify synergies between the businesses. Developments during the year included: Acquisition of Reed Aviation; Acquisition of Trinity Field Marketing.
• Further regional press contract gains with an additional £28m of new revenue secured during the year.
• The new major hub branches at Preston and Maidstone, opened in late 2009, are fully integrated and have allowed further rationalisation of the branch network. Stage one of this process is complete and delivered cost benefits during the year. Stage two will take place during 2011.
• Successful installation of SAP at two branches with the full branch roll out commencing in March 2011 with the cost benefits being delivered in 2012.