Publishing group Archant is warning of tough advertising conditions following a difficult trading period which saw half-year pre-tax profits down £400,000 to £17.5m.

Archant’s newspaper and printing revenue saw a rise of 0.3 per cent at £78.2m, including £500,000 from the Property Mart titles acquired in March 2005 from Highbury House Communications plc.

Despite a difficult advertising and circulation market, Archant Regional is concentrating on increasing audience via the internet, re-design of existing publications and the introduction of new ones.

Revenue for the group as a whole for the 26 weeks to July 2 was up 7.5 per cent at £99.2m compared with £92.3m in 2004. Operating profit in the same period, before exceptional items and amortisation of intangibles, was £400,000 lower at £17.5m (2004: £17.9m).

Pre-tax profit was 19.5 per cent lower at £13.3m (2004: £16.6m).

In his interim financial report to shareholders, chairman Richard Jewson said pre-tax profits were lower in this period due mainly to the increased interest charge of £1.9m (2004: £0.4m) from financing a recent share buy-back scheme and to exceptional costs of restructuring and discretionary pension increases of £1.1m (2004: £0.4m).

He said: “Since strong trading in January, the market, particularly in recruitment and motors, has tightened and these figures reflect the impact of a difficult trading period.

“While the Archant board is taking a cautious view of the immediate outlook for advertising revenue, we have a range of tremendously strong titles and we have a committed staff throughout the group to enable us to rise to the challenge.”

Magazine divisions, Archant Specialist and Archant Life made “significant contributions” to the group, showing an increase in turnover of 46.6 per cent to £21m, while magazine operating profit was up £37.3 per cent at £1.4m. Acquisitions, earlier in the year, of Romsey Publishing Group Ltd and the London lifestyle magazines from Highbury House (managed by Archant Specialist and Archant Life respectively) contributed £5.7m revenue and £300,000 operating profit.