Smiths News has issued results for the first six months of trading since its demerger from WHSmith in September 2006.
The newspaper and magazine wholesaler, which supplies 22,000 retailers across England and Wales, announced revenues up 4.8% to £615m and pre-tax profits up 14.3% for the six months to February.
Chief executive Mark Cashmore said: "While the market remains challenging, it is not a declining one. We believe there are still opportunities to develop the core business."
He added that the rise in newspaper cover prices had offset circulation declines, and that the magazine market remained difficult.
"Our focus on service has increased customer satisfaction and our ongoing efficiency programme and tight control of costs is helping to deliver consistent performance," he said.
Smiths News holds a 40% share of the magazine wholesaling market and 35% of the newspaper market.