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| Version 1 | Version 2 |
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| Johnston Press profits fall by half | Johnston Press profits fall by half |
| (40 minutes later) | |
| Johnston Press saw adjusted pre-tax profits almost halve to just over £8m in the first half of 2012, as print advertising revenues slumped by 12.5%, with a £30m one-off windfall from News International boosting the regional newspaper publisher's bottom line. | Johnston Press saw adjusted pre-tax profits almost halve to just over £8m in the first half of 2012, as print advertising revenues slumped by 12.5%, with a £30m one-off windfall from News International boosting the regional newspaper publisher's bottom line. |
| Johnston Press, which owns about 250 regional newspaper titles, reported pre-tax profits before the inclusion of one-off windfalls drop 1.5% year-on-year to £13.6m. | Johnston Press, which owns about 250 regional newspaper titles, reported pre-tax profits before the inclusion of one-off windfalls drop 1.5% year-on-year to £13.6m. |
| Operating profit in the 26 weeks to 30 June rose by 16% to £37.8m. | Operating profit in the 26 weeks to 30 June rose by 16% to £37.8m. |
| However, the figures reflect a major one-off payment of £30m that the publisher received from News International for the partial termination of a long-term contract to provide printing facilities. | However, the figures reflect a major one-off payment of £30m that the publisher received from News International for the partial termination of a long-term contract to provide printing facilities. |
| If this windfall is stripped out pre tax profits fell by 48.6% year-on-year from £15.69m to £8.06m. | If this windfall is stripped out pre tax profits fell by 48.6% year-on-year from £15.69m to £8.06m. |
| The company points out that in terms of underlying profitability, Johnston Press is a strong business. Operating profit before non-recurring items fell just 8.7% to £30.4m. | The company points out that in terms of underlying profitability, Johnston Press is a strong business. Operating profit before non-recurring items fell just 8.7% to £30.4m. |
| In addition, Johnston Press has impressively maintained margins at 17.3%, well ahead of a typical market average of 10% to 12%. | In addition, Johnston Press has impressively maintained margins at 17.3%, well ahead of a typical market average of 10% to 12%. |
| Johnston Press also recorded more than £20m in one-off costs, including staff redundancies, which hit its bottom line. Staff numbers were reduced by 8.5% year-on-year in the first half – 412 employees were cut, reducing total numbers from 4,843 to 4,431. | Johnston Press also recorded more than £20m in one-off costs, including staff redundancies, which hit its bottom line. Staff numbers were reduced by 8.5% year-on-year in the first half – 412 employees were cut, reducing total numbers from 4,843 to 4,431. |
| The publisher reported total revenues down 8.2% year-on-year in the 26 weeks to 30 June. | The publisher reported total revenues down 8.2% year-on-year in the 26 weeks to 30 June. |
| Within this print advertising fell 12.5% to £97.4m, cover price income fell 3.1% to £46.7m and revenues from contract printing fell 10% to £12.6m. | Within this print advertising fell 12.5% to £97.4m, cover price income fell 3.1% to £46.7m and revenues from contract printing fell 10% to £12.6m. |
| The fall in total revenues was mitigated by £12.8m of savings in the first half. | The fall in total revenues was mitigated by £12.8m of savings in the first half. |
| A bright spot was an 8.4% rise in digital revenues, albeit from a small base, to £10.3m. | A bright spot was an 8.4% rise in digital revenues, albeit from a small base, to £10.3m. |
| Chief executive Ashley Highfield said digital display advertising was what he was strategically hanging his hat on. Digital advertising was up 43.8% year-on-year. | Chief executive Ashley Highfield said digital display advertising was what he was strategically hanging his hat on. Digital advertising was up 43.8% year-on-year. |
| The publisher's websites have seen a 39% increase in traffic year-on-year, while the fledgling mobile business has seen a 100% increase in usage | The publisher's websites have seen a 39% increase in traffic year-on-year, while the fledgling mobile business has seen a 100% increase in usage |
| Johnston Press incurred £10.8m in one-off restructuring costs relating to existing businesses, including redundancy costs. | Johnston Press incurred £10.8m in one-off restructuring costs relating to existing businesses, including redundancy costs. |
| In addition there was a £13.3m write down in the value of printing presses, closure of the Peterborough printing press. | In addition there was a £13.3m write down in the value of printing presses, closure of the Peterborough printing press. |
| During the period the publisher began an ambitious overhaul of its portfolio with the relaunch of 23 titles, and the conversion of five daily titles into weekly newspapers. | During the period the publisher began an ambitious overhaul of its portfolio with the relaunch of 23 titles, and the conversion of five daily titles into weekly newspapers. |
| Net debt at 30 June was £361.7m, but thanks to the News International payment, at 31 July this had reduced to £332m. | Net debt at 30 June was £361.7m, but thanks to the News International payment, at 31 July this had reduced to £332m. |
| The company said that it expected net debt to stand at between £310m and £315m by the end of the year. | The company said that it expected net debt to stand at between £310m and £315m by the end of the year. |
| Grant Murray, the finance director at Johnston Press, said that at the current rate of pay down of about £40m a year, the company would be under the "magical" £235m mark by the end of 2014. | Grant Murray, the finance director at Johnston Press, said that at the current rate of pay down of about £40m a year, the company would be under the "magical" £235m mark by the end of 2014. |
| This figure is key for Johnston Press as it means that the business would be operating at less than a ratio of three times net debt to earnings before interest, tax, depreciation and amortisation. | |
| If the company can hit this by the end of 2014 it will get a reduced interest rate from its banks. Net interest paid in the first half of 2012 was a hefty £13.6m. | If the company can hit this by the end of 2014 it will get a reduced interest rate from its banks. Net interest paid in the first half of 2012 was a hefty £13.6m. |
| Finance costs remain high, increasing from £18.9m in the first six months of last year to £21.2m in the first half of 2012. | Finance costs remain high, increasing from £18.9m in the first six months of last year to £21.2m in the first half of 2012. |
| The publisher's pension deficit stands at £102.2m. From the beginning of June Johnston Press increased its contributions to the scheme from £2.2m to £5.7m. | The publisher's pension deficit stands at £102.2m. From the beginning of June Johnston Press increased its contributions to the scheme from £2.2m to £5.7m. |
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