Southnews Reports 6% Increase In Pre-Tax Profit

Southnews has announced pre-tax profits of £12.9m for the 52 weeks ending 1 April 2000. This represents a 6% increase on the 53 weeks of 1999. Turnover also increased, to £75,876 compared to £72,722 the previous year.

Revenues started the year badly, with weak performances from recruitment and motor advertising, but picked up by the end of the year to give an overall growth of 6%.

In March this year the company acquired the Kent, London, Lincolnshire and Nottingham operations of Adscene Group plc for £52m.

Thanks to this acquisition and a reorganisation operation which created an exceptional charge of £680,000, Southnews now holds a strong position in terms of coverage of Southeast England, especially London, the M25, Kent and Essex.

Presenting the results, Southnews chairman Gareth Clark expressed his confidence in the continuing profitability of the area: “The Southeast economy, being service based, continues to demonstrate economic growth and most indicators, including recruitment advertising, are buoyant.”

The sale of the group’s Lincolnshire and Nottingham operations to Johnston press has been agreed subject to regulatory approval. Proceeds from the £16.5m sale will go towards the reduction of bank borrowings.

Southnews: 01932 566 311