Johnston Press Sees Encouraging Trading

In what Johnston described as an encouraging sign, all classified advertising categories reported positive growth, although display advertising was marginally negative, held back by weaker demand from national advertisers. The group says that market conditions have generally remained more difficult in the south of the country.

Weekly circulations have continued to grow, whilst the dailies have seen a modest decline in sales. Nevertheless, daily circulation revenues are still growing, thanks mainly to cover price increases.

The integration of Regional Independent Media is progressing ahead of plan and Johnston anticipates related cost savings of more than £10 million in this first full year of ownership.

“Despite the prevailing climate of economic uncertainty, the Board currently anticipates modest advertising revenue growth for the full year,” said the statement this morning.

Today’s trading statement is in line with a Merrill Lynch assessment of the group’s performance last month (see Advertising Upturn Helps Johnston To Prosper).

Shares in Johnston Press were up 0.5p at 423p at 10.30 this morning.