Johnston Press has reported a fall 34.4% fall in ad revenue for the first 19 weeks of the year.
The regional publishing group said following this its operating profit for 2009 is likely to be towards the lower end of market expectations.
It has also scrapped plans to sell its Irish titles despite “considerable interest”, as the board has been unable to secure a “sufficiently high price”.
It has now in discussions with its debt providers to achieve a relaxation in the debt covenants and obtain more appropriate finances beyond September 2010.
The company’s net debt stood at £488 million at the end of April, down £29 million from the start of the year.
Out of this, £13 million was due to the strengthening of sterling against the euro and £16 million was cash generated from operations.
John Fry, Johnston’s chief executive, said: “Whilst our market remains fragile, we have seen some stability in advertising revenue over recent weeks, our cost reduction programme is on track, and we are making good progress in the discussions with our debt providers.
“This gives us encouragement that we will be well placed to benefit from any recovery in the economy as and when it emerges.”
