A regional newspaper publisher may be forced to pay £13m of tax dating back 10 years following a recent court ruling involving another company.

Archant, which publishes the Eastern Daily Press, Ipswich Star and numerous other titles, has revealed that it has made provision in its 2012 accounts for a possible payment of corporation tax and interest to HM Revenue and Customs.

The company made the disclosure as it announced a 39pc drop in operating profits ahead of its annual general meeting next month.

Archant saw its annual profits fall from £10.4m in 2011 to £6.3m last year according to a preliminary statement to shareholders published today.

The statement said:  “Following a recent tax case involving another company, provision has been made in the 2012 accounts for a possible payment to HMRC in respect of corporation tax and interest of up to £13m dating back almost 10 years.

“There is likely to be further litigation before the position becomes clear. If the company is ultimately required to meet these liabilities, it will do so within its existing banking arrangements.”

Today’s statement saw the company’s annual turnover down just 2.7pc at £131.4m.

Operating costs rose slightly from £124.6m in 2011 to £125.1m as a result of increased costs of contract printing of newspapers, investment in business development, an increase in the size of the sales force and specific programmes of sales force training.

There was also an increase in revenues from digital activities which totalled £6.4m for the year and were up 15pc in the period July to December.

Archan chairman Richard Jewson said: “Archant has had a challenging year, but has remained profitable and cash generative, whilst making real progress in strengthening its traditional products and in generating increased revenues from digital media. These show through in a satisfactory start to the current year.”

Archant’s AGM takes place at 12 noon on Tuesday 23 April at the John Innes Centre, Norwich.