Publishing firm Johnston Press seeks out suitors
● Decision comes as a result of a strategic review ● Stable of titles includes i paper and The Scotsman
Johnston Press, the publishing group that owns The Scotsman, has put itself up for sale as the company continues with its financial restructuring.
The firm, which also owns the i newspaper, the Edinburgh Evening News, the Yorkshire Post and scores of local news titles and websites, said it was seeking offers for the company.
Yesterday’s decision comes as a result of a strategic review, which the group launched last year to assess options for refinancing some £220 million of bonds due for repayment next year.
The company stressed that it was not currently in discussions with any potential buyers. It added that parties with a potential interest in making a proposal should contact investment bank Rothschild.
Johnston Press said that there can be no certainty that an offer will be made, nor that any transaction will be executed, nor as to terms of any such offer or transaction.
John Moore, senior investment manager at Brewin Dolphin Scotland, said: “How this evolves over the next month or so will be an interesting statement over the wider UK media scene.
“While the i is very much the gem in Johnston Press’s crown – it is one of few highly profitable national newspapers in the UK – the company’s debt pile and pension fund obligations will hang over any deal.
“Although there are no confirmed suitors so far, some have declared their interest in the past and could re-emerge now with [this] announcement.”
In a note, credit ratings agency Moody’s said: “We note positively the strong performance of the newspaper i, as well as the successful cost-cutting and restructuring efforts of the company in the past year.
“Johnston Press’ liquidity is adequate in the short term and should allow the company to service the coupon on its bond.”
In August, the publishing group posted a rise in operating profits and hailed a strong performance from the i newspaper, which it acquired in 2016.
Results for the 26 weeks to the end of June showed that the firm banked a statutory operating profit of £7.4m, up from £4.9m in the same period a year earlier. Total revenue came in at £93m in the first half, down from £103.3m previously.
The group said digital audiences had grown to a record 27.3 million average unique users per month. However, the effects of algorithm and news feed changes by internet giants Google and Facebook contributed to total digital advertising revenues dipping 4.3 per cent, excluding classifieds, to £12.2m.
On a statutory basis, Johnston Press booked a profit before tax of £6.2m, against losses of £10.2m the year before.