Regional newspaper group Johnston Press has announced that the first five months of its current trading year performed ahead of expectations, with advertising up two per cent on the same period last year.

The growth rate has slowed down but the group is still confident about its prospects, expecting modest revenue growth in the rest of the year.

The company said: "This, combined with the reduction in newsprint costs, proactive cost control and initial synergies from the RIM acquisition, gives the board confidence about prospects for the remainder of 2002 and of delivering a satisfactory result for the year as a whole."

Property and display advertising were the main sources of growth but the sales of evening titles were showing a small decline. Weekly sales, however, were on the up, experiencing "modest growth".

The announcement is in advance of Johnston's official interim results to be declared in August, and are the first figures to be declared since taking over Regional Independent Media for more than £500m earlier this year.

The group now owns 250 titles and will list an exceptional cost of £3m to reflect the cost or the reorganisation when the accounts are published.

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