Regional publisher Johnston Press saw a 10.6pc fall in advertising revenues in the first 18 weeks of the year according to figures published today.

The impact of public spending cuts saw recruitment advertising particularly badly affected, with revenues down 30.7pc year-on-year for the period 1 January to 7 May.

The company said in an interim management statement that public sector cutbacks had had “a significant effect” on trading.

However the overall rate of decline appears to be slowing, with ad revenues down 11.6pc year on year for the period January to March and down 7.8pc for the first five weeks of the second quarter.

Said the statement: “Given the high proportion of employment advertising within the Group’s digital offering, internet revenues have been impacted by the tough employment conditions and the lower levels of sell on from the printed product.

“However, we are encouraged by the successful launch of a new online Business Directory and Customer Review offering, ‘Find it,’ at the start of March.

“As explained in our 2010 annual results announcement, newsprint prices in 2011 are significantly higher than last year.

“Nonetheless we anticipate mitigating this increase and other inflationary pressures through continued cost management as well as generating incremental year on year savings in the region of £5m.”

The group saw a better performance from display advertising with a year on year decline in Q1 of 7.9pc improving to 5.5pc growth in the second quarter to date.

Its net debt was £388.7m at the end of April and is expected to be reduced by £20m this year.