Johnston Press flags recovery in revenues

Publishing group Johnston Press has hailed improving revenue trends amid a “challenging” industry backdrop.

The owner of The Scotsman and i newspapers said adjusted revenues fell 6 per cent to £221.5 million in 2016, but the decline slowed to 5 per cent in the third quarter and sales were up 1 per cent in the final three months of the year.

And chief executive Ashley Highfield said those improved trends have continued into 2017, with digital advertising revenues rising 2 per cent in the first quarter and print circulation of The Scotsman up 4.7 per cent year-on-year, helped by the title’s 200th anniversary celebrations.

Highfield said: “The actions we have taken to pilot the business through this rapidly-changingmarketandcreate the conditions from which to create growth are starting to bear fruit.”

Meanwhile, circulation for the i, acquired in a £24m deal last year, rose 2.8 per cent, with overall circulation revenues for the group jumping 11.3 per cent to £79.7m.

Analysts at house broker Liberum, which has a “buy” rating on the shares, said: “The good news is that there should be more of the same in 2017.”

On a bottom-line basis, Johnston Press recorded a statutory pre-tax loss of £300.3m for the year, against a £2.2m profit in 2015, having taken a £344.3m impairment on publishing titles and print assets to reflect the “current trading performance of the group”.

Excluding the impairment charge and other items, the firm posted an adjusted operating profit of £42.1m, down 14.5 per cent on a year earlier. 0 Johnston Press chief executive Ashley Highfield