Journal owner Reach has a ‘clear path forward’

JOURNAL owner Reach says it has a “clear path forward” for growth after key news on historical legal settlements and pension fund issues.

The group – also the parent of many regional titles and websites and national titles including the Mirror and the Express – reported full-year results and said it had continued to build a strong digital business despite the ongoing cost of living crisis.

Reach reported that it had reduced the amount in its fund set aside for what it calls “historical legal issues”, which include “phone hacking and unlawful information gathering”, by £20.2m. That followed a December judgment at the High Court that the group said “set out very clear parameters on time limitation which enables us to draw a line under these issues”.

Meanwhile the group has also come to an agreement with pension trustees on the 2019 and 2022 pension reviews. The group says that “provides much needed clarity on the scale of our funding obligations, which are scheduled to materially step down in early 2028”.

Reach announced that in 2023, group revenue declined 5.4% to £568.6m. Print revenues were down 2% at £438.8m, while digital revenues were down 15% at £127.4m. Operating profits were down 9% at £96.5m, with the group maintaining an operating profit margin of 17%, comparable to 17.6% in 2022.

Chief executive Jim Mullen said: “This year we have successfully gained clarity on two significant long-term uncertainties in pension funding and Historical Legal Issues. With the end of these issues in sight, we have significantly reduced our obligations and have a clear path forward for the business.

“The success of our strategy also came to the fore this year. Despite the macroeconomic pressures, we have continued to build a stronger digital business with an increasing portion of much higher yielding revenues, reducing our reliance on the open market.

“At the same time, we have expertly managed our print business, maintaining circulation revenues as well as delivering necessary cost and efficiency plans across the group.”