Express & Star holding group posts £3.5m loss

THE holding company behind the publishers of the Express & Star and Shropshire Star newspapers has announced full year losses of £3.5m.

Claverley Holdings, which includes the Midlands News Association, Precision Colour Printing and Press Computer Systems, said the continuing economic decline had made trading very difficult.

In the full year to January 1, 2011, the holding company reported a loss of £3.536m. The figure is slightly better than the £3.607m recorded the previous year although the 2009 period covered 53 weeks as opposed to 52 in 2010.

Turnover declined from £124m in 2009 to £119m in 2010. In the newspaper publishing operation, which also includes the Guernsey Press and the Jersey Evening Post, together with a clutch of weeklies, turnover declined from £107m to £104m.

The full year report states: “The newspaper publishing companies in the UK faced another challenging year with the prolonged economic downturn making trading very difficult. Newspaper circulation continued to decline throughout the industry as did advertising revenues.”

The group’s annual accounts show directors salaries totalled £727,287, down from £854,090 in the previous year. The highest paid director earned £195,700 –significantly below the 2009 level of £322,927.

No dividend was paid.

Staff costs fell from £53m in 2009 to £51m in 2010 and the MNA is thought keen to reduce this further during the current financial year. Earlier this year it announced more job cuts as it looked to reduce staffing levels by around 10%.

Elsewhere in the group, Precision Colour Printing was said to have had a successful year in the face of intense pressure on margins.

However, Press Computer Systems struggled as the continued economic uncertainty prevented many customers from investing in new systems. Nevertheless, the group said the operation had a strong sales pipeline and a good product portfolio.

Looking ahead, the group said its focus would be on developing its multimedia business.

“The group’s objective is to provide a comprehensive service to both readers and advertisers. It continues to develop new revenue streams using its branding and presence in the market in which it operates,” it said.

The group’s annual accounts are filed with Companies House.