It's been all change on the board of Trinity Mirror so far this year, and the embattled newspaper group remains without a chief executive after the departure of Sly Bailey in June. Such distractions didn't stop it delivering a decent set of half-year figures, though, and a 25 per cent jump in the share price could mark the start of a recovery.
While difficult advertising markets meant overall revenues continued to slide, steady circulation revenues of £154m limited the decline, and tight cost control resulted in operating profit climbing 12 per cent to £45.2m. That's before the full benefit of initiatives such as the integration of its Scottish business and a shift to seven day publishing across its papers, which are expected to deliver annual cost savings of between £15m and £20m, and after continued investment in digital. Along with anticipated lower newsprint prices in the second half, full-year profits are now likely to be ahead of previous expectations. More importantly, strong operating cash flows meant a £40.3m reduction in net debt, including the repayment of maturing £69.7m private loan note.
Broker Numis Securities has upgraded its full-year pre-tax profit forecast by 10 per cent to £92m, giving EPS of 27.8p (from £91.9m and 27p last year).
TRINITY MIRROR (TNI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 38p | MARKET VALUE: | £97.9m | |
| TOUCH: | 38-39p | 12-MONTH HIGH: | 55p | LOW: 24p |
| DIVIDEND YIELD: | nil | PE RATIO: | 1 | |
| NET ASSET VALUE: | * | NET DEBT:* | £181m | |
| Half-year to 1 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 371 | 28.9 | 13.2 | nil |
| 2012 | 356 | 35.1 | 16.0 | nil |
| % change | -4 | +21 | +21 | - |
*Negative equity shareholders' funds | ||||
