Trinity Mirror’s preliminary year-end results show the company increased turnover and profit – but a £168m exceptional operating cost connected with former Mirror Group titles put a different slant on the figures.

Turnover increased 4.8 per cent to £1,131.1m, with operating profit before exceptional items up 1.5 per cent to £204.4m.

In its financial report the company highlighted a successful implementation of its regional newspaper strategy, which brought in revenue and cost improvements during 2001.

The regional newspaper division also had a bigger input into digital media work, where a restructuring resulted in a reduced investment.

The company also announced a strategy to “revitalise” its national newspapers – including a relaunch of The Mirror brand and work to attract younger readers and increased reader loyalty. There is also a new marketing strategy for Scottish national newspapers.

Company chairman Sir Victor Blank said: “We have delivered a cohesive and wide-ranging review of our regional businesses that is starting to deliver real operational benefits.”

The Group’s regional titles remain amongst the highest “actively purchased” in the industry. The division’s paid-for weekly titles performed well with overall growth across the portfolio.

The regional newspapers achieved revenue and operating profit growth of 14.1 per cent to £530.7m and 4.7 per cent to £120.2m respectively.

Slowly improving circulation towards the end of the year, early implementation of the division’s strategy and tight cost control, including £5.4m in cost reductions, meant the division could mitigate the 12 per cent increase in the price of newsprint and the slowing advertising market.

The strategic intent of the Group’s regional newspaper and digital media businesses is that “in 2005 Trinity Mirror will be the clear leader of the regional information industry, with a disproportionate share of top talent, offering unique and high quality publications and services to readers and advertisers, and delivering top quartile profit growth relative to peers, while relentlessly pursuing successful new businesses.”

Sir Victor said in his report: “In the first two months of 2002, the advertising market has remained tough.

“The directors believe it is prudent to plan on this remaining so throughout most of the year.

“However, the strategic initiatives and successful cost reduction programmes give the board confidence in the underlying performance this year.”

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