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Profits should be "top of the range" – Johnston

Johnston Press is predicting annual profits at the top of the range of current market estimates in its latest trading update.

Advertising revenue has continued to grow, circulation of its weekly papers is up, and costs have been reined in by careful management.

The preliminary results announcement said: “This has demonstrated the resilient nature of our business despite the climate of economic uncertainty that has prevailed over recent months, coupled with our continued emphasis on the tight management of costs.

“Overall, circulation of our weekly titles continues to show modest growth, whilst our total daily circulation remains in slight decline, in line with general market trends; actions are being taken to address this.

“In particular, we will be assisted by the improved press performance now being experienced following completion of our major press development programme and the roll-out of computer-to-plate technology.”

The company said its integration with RIM was progressing well, and was on target to deliver the expected £9m of cost savings for 2003.

It also said that next year’s figures will be assisted by further cost management, the contribution from the first full year of former RIM titles and a reduction in the cost of newsprint.

The Johnston portfolio includes the Portsmouth News, Sunderland Echo, Hartlepool Mail, Shields Gazette, Yorkshire’s Ackrill Media Group, Northamptonshire Chronicle & Echo, and the three Manx newspapers – the Isle of Man Examiner, Manx Independent and Isle of Man Courier.

The RIM acquisition brought the Yorkshire Post, Yorkshire Evening Post, Sheffield Star, Lancashire Evening Post and Blackpool Gazette into the fold, plus 29 weekly paid-for and 18 weekly free titles.

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