The recent strategic review at Northcliffe Newspapers and costs of the next phase of reorganisation are set to come in at some £15m.

The half-year trading statement from parent company Daily Mail and General Trust says that a further announcement on its regional newspapers arm will be made "soon".

The implementation of the Aim Higher programme continues, leading to "significant" year-on-year cost reductions of around £20m a year.

For the five months to February 2006, operating costs were five per cent lower than in the previous year, despite suffering a newsprint price increase and significantly higher energy costs.

Other figures show that Northcliffe has continued to experience what it calls "tough trading conditions".

Advertising revenues for the five months up to February were seven per cent below the comparable period last year. Recruitment revenues are down 16 per cent, with other advertising revenues three per cent lower so far this year. Property has continued to grow - up six per cent - but motors has fallen by 14 per cent.

Digital publishing remains strong, with revenues 17 per cent above last year for the five months to February. Circulation revenues were in line with the same period last year.

The trading report, issued ahead of its half-year announcement, added: "In the July to December 2005 ABC period, Northcliffe evening titles continued to out-perform the regional newspaper industry average circulation figures. Northcliffe morning titles also out-performed the regional newspaper industry average circulation figures."

Northcliffe Newspapers owns papers including the Bristol Evening Post, Western Morning News, The Sentinel in Stoke and the Nottingham Evening Post. It has dailies and weekly publications from Aberdeen to Cornwall.

The company had recently been put up for sale by DMGT but despite receiving three firm offers, it was felt that the offers were low because of current market conditions, and did not fully reflect the long term value of the business and a sale was rejected. Some commentators now expect the iminent sale of the Aberdeen business to another regional press group or venture capitalists. The Daily Telegraph reports today that the south eastern part of the business may also be sold.