A division of a regional publisher is reporting a 38pc rise in annual profits in its accounts for last year.

Newsquest’s Herald and Times Group, which includes The Herald, the Sunday Herald and the Evening Times, said its pre-tax profits rose from almost £8.7m in 2011 to more than £12m for the 2012 calendar year.

But the company said the rise was largely down to a £3.4m exceptional property charge, which affected the figure in 2011.

The Herald also reports that the group’s turnover increased year-on-year from £56.9m to more than £57m.

Herald and Times Group managing director Tim Blott said: “The Herald and Times Group had another challenging year in 2012, where turnover increased marginally and profit rose but mainly because of an exceptional property charge in 2011.

“We’ve seen encouraging growth both in audience and revenue in our internet operations and our magazines business continues to do well.

“Our printing division has come under pressure in an increasingly competitive print contracts market, while our newspapers continue to compete vigorously in a crowded and volatile environment.”

On Friday, Newsquest announced that Johnston Press digital director Henry Faure Walker would succeed Paul Davidson as chief executive from April next year.