Shares in Johnston Press (JPR) slumped more than 6 per cent after the publisher of the Eastbourne Herald and Northampton Chronicle recorded an operating loss of £246m. Print media's decline remains the overriding issue: print advertising sales fell 13 per cent, driving a double-digit drop in overall advertising revenues.
But it wasn't all bad news. Johnston's losses were driven by its decision to slash the carrying value of its titles by £202m and that of its print presses and properties by over £68m, as well as by £33m of spending on restructuring. Adjust for these and other one-off costs and operating profit crept up 3 per cent to about £54m, its first increase in seven years. Moreover, Johnston continued its transition into the digital age: online advertising sales grew by over 19 per cent to almost £25m, with property and motoring websites leading the charge.
The veteran publisher, listed on London's stock market since 1988, also took steps to combat middle-aged bloat. It lowered its operating costs by 12 per cent to £238m and reduced its debt pile by 5 per cent to £302m. It downsized its staff by 13 per cent, meaning it has cut almost 1,600 jobs in the past two years.
Broker Numis Securities expects adjusted pre-tax profits of £18.5m, giving EPS of 2.2p, up from £18m and 2.1p last year.
| JOHNSTON PRESS (JPR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 23p | MARKET VALUE: | £155m | |
| TOUCH: | 22-23p | 12-MONTH HIGH: | 31p | LOW: 12p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 14p* | NET DEBT: | 311% | |
| Year to 28 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 428 | -114 | -13.7 | nil |
| 2010 | 398 | 17 | 5.6 | nil |
| 2011 | 374 | -144 | -14.2 | nil |
| 2012 | 359 | -7 | 0.9 | nil |
| 2013 | 303 | -287 | -32.7 | nil |
| % change | -16 | - | - | - |
*Includes intangible assets of £541m, or 78p a share | ||||
