High Expectations For Midland Independent And Southern Newspapers

Stockbroker Panmure Gordon has upgraded its profit expectations for next year for Midland Independent and Southern Newspapers. The broker tips both companies’ shares as ‘good’ investments.

Panmure Gordon has raised its pre-tax forecast on MIN to £20.2 million, a rise of £4.2 million on the 1996 estimation. The broker predicts that Southern’s profits will increase by £600,000 in 1997/8 to £16.1 million.

The lower advertising costs and rising advertising revenue have been cited as the main reason behind these raised expectations. The broker also see MIN as both a predator, and a potential take-over target. The group has recently the bought the Hinckley Times . This deal includes a printing and stationary business, John Baxter and Sons and the profitable, weekly, paid-for paper that has been established in the Leicestershire town of Hinckley for over a century. The broker sees Southern’s recent heavy capital spend as a catalyst for accelerated growth.

Midland Independent Newspapers: 0121 236 3366

Southern Newspapers: 0171 583 8827