Johnston Press sees losses narrow

Johnston Press said like-for-like advertising revenues fell 7.3 per cent in the first nine weeks of the year, improving on a 26.5 per cent plunge during 2009.

After one-off writedowns on newspaper titles and closed presses, the firm posted pre-tax losses of 113.8m – although this was healthier than the 429.3m reverse in 2008.

The group is laden with 422.1m in debts after a series of acquisitions, but managed to refinance its borrowings last year and has no immediate plans to raise further funds.

Chief executive John Fry said advertising was "more stable", while circulation trends improved, and digital revenues grew.

"The year ended with the group in a much stronger position than it began," he said.

Johnston cracked down on costs during 2009, making savings of 49.3m through staff cuts, closing two presses in Scotland and Ireland, and improving IT systems.

The group has shed 25 per cent of its staff over the past two years and expects further cost reductions during 2010.

Although traditional advertising markets such as recruitment and property came under heavy pressure last year, it has worked on improving its 297 websites and digital revenues rose 12.3 per cent during the final quarter despite a 10.6 per cent drop over the year as a whole.