Archant Announces 3.4% Operating Profits Increase

In a preliminary statement to shareholders, chairman Richard Jewson identified strengthening advertising revenues, continued progress in the magazines business, and tight cost control as contributors to increase in operating profits, despite the sale of its Scottish titles to Johnston Press (see Johnston Press Completes Purchase Of Archant’s Scottish Titles).

Strong cash conversion and the disposal proceeds from the Scottish titles resulted in net debt reduced from £54.8 million at the start of the year to £36.9 million at the year end.

The regional newspaper and printing operations saw modest profit growth of 0.9%. Profit growth in magazines and contract publishing was 16.1%.

On a like-for-like basis, total revenue grew by 3% to £189.6 million.

Online activities saw revenues almost double to over £2 million and monthly unique visitors across the 130 plus websites increased by 53.1%.

Jewson said: “The outlook for 2008 is uncertain with a weakening of advertising in the final quarter of 2007 continuing into 2008.

“Despite these uncertainties we anticipate that our magazine business will see continued growth and that we will be able to build further upon our on-line developments.”