Johnston Press sees ad growth slowing after record profits

by Daniel Farey-Jones, Brand Republic 16-Mar-05, 11:00

LONDON – Johnston Press, publisher of regional newspapers including the Yorkshire Post, has posted record full-year pre-tax profits of £150.6m, a rise of nearly 18%.

The company saw advertising growth slow from 6% in the first half of the year to 5% in the second half. In the opening two months of 2005, it saw growth of 2.6% on strong trading for the same period last year.

It announced the appointment of two directors. Danny Cammiade, previously director of operations, was appointed an executive director and chief operating officer. Les Hinton, executive chairman of News International, was appointed a non-executive director.

Johnston Press chairman Roger Parry said: "Looking forward, the board expects to see another year of growth in advertising and other revenue streams. We will also continue to invest heavily in editorial resources, printing, distribution and online technology."

The online classified platforms were upgraded and a number of locally focused websites and new newspapers and lifestyle magazines were launched. The company withdrew from radio by selling its 33% holding in Two Boroughs Radio in Burnley.

Parry also said the company was likely to be involved in further consolidation of the regional newspaper industry.

Turnover grew 5% on 2003 to £518.8m and operating margins climbed from 33.1% to 34%.

The company increased its full year dividend by 20% to 7.2p.

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