Local newspapers face axe as Johnston Press continues to restructure
YORKSHIRE newspapers could face closure as Johnston Press confirmed plans to sell “non-core” titles.
The publisher, which owns the Yorkshire Post and Sheffield Star, revealed adjusted profit before tax rose 22.6% to £31.5m in the year to January 2, as continued restructuring reduced its costs.
Revenue fell 6.8% to £242.3m, as declining advertising and print sales offset a 12.4% in digital revenue.
Costs were £191.7m for the year, down £13.6m net. Redundancy costs fell from £7.3m in 2014 to £4.5m.
Johnston Press also continued to reduce its debt, wiping off almost £15m to bring net debt to £179.4m.
Chief executive Ashley Highfield the “challenging trading conditions” seen in the second half of the year have continued into the first quarter of 2016.
He said: “We have reduced costs to maintain profitability, reset our portfolio and refocused on priority markets with attractive audiences that offer the best opportunity for growth.”
Mr Highfield also confirmed Johnston Press has identified a number of “non-core” titles that will either be “divested or run with less costs”. Interest from third parties has been “encouraging”, he added.
Titles that could be affected include the Beverley Guardian, Brighouse Echo, Morley Observer & Advertiser, North Yorkshire News, Pocklington Post, South Yorkshire Times and Todmorden News, including Hebden Bridge News.
The group’s share price rose 17% in morning trading to 48p following the results. However, it remains around 70% lower than one year ago, when shares closed on March 23 2015 at 165p.
