Adscene Turnover Increases To £28 Million

The Adscene Group plc has released its results for the half year ending 30 November 1996.

During this period turnover increased by 28%, to £28.76 million. Despite the high cost of newsprint and the difficult commercial printing market, operating profit rose by 10%. Publishing turnover rose by 78% following the full contribution from the 1995 acquisitions, Central Independent Newspapers and Associated Kent Newspapers.

The commercial printing unit saw operating profits decline by 25%. Operating profits in this division were £857,000, down £280,000 or 25% on turnover.

Overall, the group’s strong cash-flow has enabled the board to authorise an increase in capital expenditure. The investment programme is continuing; production technology is being updated and the Tamworth Herald is being re-located in new premises. The Welshpool Web Offset factory is being closed.

The company anticipate that the performance of the publishing division will continue to improve as recent restructuring and cost savings flow through. It is hoped that the division will also benefit from newsprint price reductions in the second half. Discussions regarding the sale of the commercial printing division are continuing.

Earnings per share were 6.1p, paying a dividend of 3.5p.

The Adscene Group plc: 0171 583 4567