Profits up for Johnston but printers under threat
REGIONAL newspaper group Johnston Press has reported soaring pre-tax profits, despite a 4.4% decline in revenue.
The group, which publishes the Preston-based Lancashire Evening Post, the Lancaster Guardian, the Blackpool Gazette and the Yorkshire Post announced its underlying profit had risen 235.1% to £29.9m from £8.9m.
However, there was some potentially bad news for print workers at its Broughton press near Preston, with Johnston striking a multi-million pound five year deal to transfer print of the Daily Express and the Daily Star to Yorkshire.
Printing will move from Broughton to Johnston’s Dinnington, Sheffield site,starting in July.
David Crow, Johnston Press’ managing director Group Services Division (Print & Logistics) said: “We are delighted by this significant deal and thrilled to have these prestigious titles in our print portfolio. This new contract underpins the exacting levels of service we can offer customers.”
Johnston Press’ existing print clients include Local World, Guardian Media Group and Tindle Newspaper Group. The Times Educational Supplement is also printed by Johnston Press.
The company’s operating profit increased for the second consecutive year to £55.5m – up 2% while revenues of £265.9m were down 4.4%.
The company’s digital revenue was up 20% from £24m to 28.8m – an increase of 17.4% thanks to advertising. The digital audience grew by 35.8% to an average of 16.7m.
Johnston also reported continued debt reduction, down 38.9% to £184m and reduced operating costs by £13.8m net of investment in its digital operations.
Chief executive Ashley Highfield said: “We are seeing the business transform into a modern multimedia organisation.
“The strong growth in our digital audiences and accelerated growth of digital revenues, aided by the roll-out of Digital Kitbag and the launch of Sky Adsmart and 1XL are changing the shape of the company.
“We are excited about the future for the business and confident of delivering on our strategic objectives of growing an engaged audience base and returning our business to top line growth.”
