Newspaper and magazines wholesaler Smiths News PLC (NWS.LN) Thursday reported a 43% rise in first-half pretax profit after it picked up a raft of new contracts following the exit of one of its competitors, adding it is "firmly on target" to exceed market expectations for the current fiscal year.

The firm, which also increased its interim dividend 9.1% to 2.4 pence, said the results reflected an "unprecedented level" of new business in magazine and newspaper distribution.

Analysts currently expect the company to post pretax profit of GBP33.3 million on revenue of GBP1.8 billion, according to FactSet.

For the six months to Feb. 28 Smiths posted pretax profit of GBP15.3 million compared with GBP10.7 million in the same period a year earlier.

Revenue increased to GBP919.8 million from GBP609.5 million.

Publisher Bertrams, which it acquired last March, is performing ahead of management's expectations, Smiths said, and is well placed to increase its on-line, academic and international sales.

Smiths also Thursday said Nick Gresham will join as chief financial officer. He is currently the finance director of Homebase, a subsidiary of Home Retail Group PLC (HOME.LN).

Company Web site: www.smithsnews.co.uk

-By Rachael Gormley, Dow Jones Newswires; 44-20-7842-9308; rachael.gormley@dowjones.com

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