Northcliffe Newspapers increased its operating profit by seven per cent to £100.5m for the year, according to the company's audited preliminary results.

Most publishing centres reported progress, with titles in Aberdeen and Bristol, Derby, Nottingham, Tamworth, Devon and Hungary and the digital publishing wing NEP also being singled out in a report by parent company Daily Mail and General Trust chairman Lord Rothermere.

He said their performances were particularly encouraging following difficult market conditions in 2003, and that the turnover of £519m was helped an extra week of trading.

Circulation figures showed that from January to June, Northcliffe's morning and evening titles, while showing a gentle decline, "out-performed the industry". Its weeklies, however, fell below the industry average, although 14 of the group's 24 weekly titles showed increases.

Circulation revenue grew by 1.5 per cent on a like-for-like basis. Some titles increased their cover prices during the year, but this was partly offset by the declines in circulation, particularly for the evening titles.

Advertising revenues recorded growth of 5.9 per cent, with recruitment up by 10 per cent and property improving by 11 per cent on the back of a buoyant housing market. However, motors' advertising reflected the overall marketplace and, despite a number of initiatives, declined by one per cent.

DMGT as a whole reported an adjusted profit before tax of £234m, an increase of 26 per cent compared with the equivalent figure for the previous year.

Lord Rothermere said in his report: "The Group's businesses are in good shape, finding opportunities to grow both by launching new products and by making small acquisitions at attractive prices.

"This leads the board to look forward to another year of progress, albeit against the backdrop of an uncertain advertising market."