The news from Johnston Press (JPR) was better than expected, spurring investors on to send the regional newspaper publisher's shares up 15 per cent. But digital growth and cost-cutting failed to offset print declines. The upshot was an 8 per cent slide in adjusted operating profits to £50.6m.
Technology investments and website upgrades led to a 41 per cent rise in unique users to 22.6m in December, which resulted in a 12 per cent rise in digital sales. But falling demand for newspapers drove print advertising and circulation revenues down a tenth to £194m.
The regional newspaper publisher cut its operating costs by 7 per cent. Its pension deficit was also reduced by 70 per cent to £27m, while net debt fell by about 8 per cent. And it recently agreed to acquire cut-price daily i - a deal that management expects to create the UK's fourth largest national news publisher, accelerate digital growth and stabilise circulation revenues.
Broker Numis is reviewing its forecasts. It had previously expected adjusted pre-tax profits of £30.1m in 2016, giving EPS of 19.3p, against the £31.5m and 21.2p achieved in 2015.
| JOHNSTON PRESS (JPR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 48p | MARKET VALUE: | £51m | |
| TOUCH: | 47.5-48p | 12-MONTH HIGH: | 170p | LOW: 35p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 4 | |
| NET ASSET VALUE: | 245p* | NET DEBT: | 69% | |
| Year to 2 Jan† | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | 316 | -122 | -12.0 | nil |
| 2012** | 303 | -6 | 0.8 | nil |
| 2013** | 290 | -291 | -90.8 | nil |
| 2015†† | 269 | -24 | -0.4 | nil |
| 2016 | 245 | 3 | 10.7 | nil |
| % change | -9 | - | - | - |
*Includes intangible assets of £479m, or 452p a share **Figures adjusted for rights issue and 50-to-one share consolidation †Financial years to 31 Dec 2011, 29 Dec 2012, 28 Dec 2013, 3 Jan 2015 and 2 Jan 2016 ††53-week period | ||||
