Newly-formed regional publishing venture Local World has delivered an operating profit of more than £28m in its first nine months of operation, figures today revealed.
Local World was formed in January as a result of a merger of the former Northcliffe Media and Iliffe News and Media groups.
Its profit figures are revealed in this morning’s annual report from DMGT, which owns a 38.7pc stake in the company.
DMGT said its share of Local World’s operating profits for the nine months up to the end of September totalled £11m, which would suggest the company made an overall profit for the period of around £28.4m.
The results appear to demonstrate an upturn in profitability for Local World when compared with the performance of its predecessor company Northcliffe Media.
Northcliffe delivered an operating profit of £26m for the whole of 2012.
The DMGT report stated: “Local World delivered an encouraging performance for its first nine months of trading to September 2013, with DMGT’s 38.7pc share of operating profits being £11m.”
“The full-year 2014 share of operating profits form joint ventures and associates is expected to exceed £30m and will benefit from the inclusion of a full year’s trading at Local World.”
DMGT received 52.5m from the sale of Northcliffe to Local World in addition to its 38.7pc shareholding in the new company.
Other shareholders in Local World include Iliffe parent company Yattendon with 21.3pc and Trinity Mirror with 20pc.
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But……the cost cutting at Local World is even more than when it was Northcliffe. They will eventually run out of people to sack (even the execs are quaking) and then what happens?
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Given today’s editorial ramblings from the head of Local World, David Montgomery, it won’t be too long before it all comes crashing down.
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