Trinity Mirror posts 40% drop in profits

Trinity Mirror has reported a 40% fall in pre-tax profits to £74 million for 2011 – and has agreed to cut pension fund payments by almost £70 million.

The Daily Mirror publisher said that it has been forced to strike deals for a new finance facility and with its pension trustees to give it sufficient financial flexibility for the foreseeable future.

The company expects advertising revenues to be down 12% year on year in Q1 2012. As a result, it has announced plans to cut £15 million in costs.

Trinity Mirror reported a pre-tax profits fall of 15.4% from £108.6 million in 2010 to £91.9 million last year on an adjusted basis. Adjusted operating profits were down by 15% to £104.5 million.

Total revenues for Trinity Mirror fell by 2% to £746 million.

Sly Bailey, chief executive, Trinity Mirror plc, said: “Rigorous management of the business has supported profitability and delivered resilient cash flows in a challenging economic environment whilst ensuring we appropriately position the business for growth.

“In response to the cyclical market pressures we have undertaken a series of measures to support both revenues and profitability including the delivery of structural cost savings of £25 million during the year. Without the impact of £22 million of additional costs due to newsprint price increases, adjusted operating profit would have increased year on year.

“Our strong operating cash flow has enabled us to reduce net debt in the year by £44.7 million to £221.2 million. We have also announced today a new £110 million bank facility through to August 2015 together with agreed reduced pension funding obligations for the next three years. Our resilient cash flows, improving financial position and secure longer term financing underpin the value proposition of the business.”

Click here for the full results statement.