The Business ends its distribution deal with Mail on Sunday

The Business, the title owned by the Barclay brothers, is introducing home delivery to replace its current deal to distribute the title free with The Mail on Sunday.

Distribution with the Associated Newspapers title will end in mid-April.

Associated is involved in a battle for ownership of Hollinger International with the Barclay brothers, but cited other reasons for ending the arrangement.

Associated said the deal, which saw 130,000 copies of The Business bagged with The Mail on Sunday, had failed to lift sales and Andrew Neil, the publisher of The Business, said he was disappointed that his paper wasn't reaching the right people.

Neil intends to introduce sponsored home delivery to 20,000 homes in Edinburgh and 100,000 homes in Greater London. In a statement to Business staff, he said: "This will give us the numbers and the quality that the MoS arrangement did not."

The Business will continue to be distributed free with the Associated title Ireland on Sunday to 35,000 homes in Dublin.

Copies of The Business had been distributed with The Mail on Sunday since last November. As a result The Business increased its circulation to 287,299, up 32 per cent.

Neil said: "For the first time since the paper was launched in 1998, we actually hit budget this month, which means we are on target to break even before year-end, a remarkable prospect in the current climate."