Connect launches Amazon pick-up service as final results beat targets

Newspaper and books distributor Connect, the renamed Smiths News, has launched a new click-and-collect service for Amazon customers, after announcing final results ahead of target.

The company has launched its Pass My Parcel scheme with Amazon, a new and wholly-owned 'click and collect' delivery service that is part of its efforts to diversify revenues. Amazon said the service was its "fastest pick-up service yet".

Connect has also launched its Jack's Beans coffee-distribution service, which will allow smaller independent retailers to earn a commission from offering premium vended coffee. Vending machines, maintenance, branding and supplies will be provided by Connect, which has agreements already with 120 stores and is already breaking even.

Final results were better than had been expected as its news distribution and education & care businesses remained robust and the books division numbers were not as bad as feared.

Group underlying revenue and underlying profit before tax were both minutely ahead of last year, by less than 1%, at £1.8bn and £50m respectively. Statutory profit before tax of £43.1m was up 10.8% versus the prior year.

Underlying earnings per share were up 2.8% to 21.7p thanks mainly to a lower effective tax rate. Free cash flow was a strong result at £37.2m, up 14.1% on last year and bringing net debt down to £93.0m.

Chief executive Mark Cashmore hailed the "solid" trading performance, which had been helped by additional sales momentum from the World Cup.

"Whilst the books division has had a disappointing year, management actions have now stabilised performance.

"We are particularly excited about today's announcement of the launch of Pass My Parcel with Amazon, which leverages the core skills of the business and supports our diversification strategy."

Pass My Parcel will use the company's existing core skills and infrastructure to offer Amazin customers a twice-daily distribution to participating independent retailers, seven days a week, 364 days a year.

When selecting Pass My Parcel as a delivery option, customers ordering online from Amazon by 7.45pm will be able to collect their parcel from 6.30am the next morning, or, if ordered by 11.45am will be able to collect from 4pm the same day.

Christopher North, managing director of Amazon.co.uk, said: "This is our fastest pick-up service yet; we know that Prime customers love fast delivery and the convenience to pick up their order at a time and place that suits them best. This new service brings together both of those great benefits."