Johnston Press Announces Further Cuts Plan

The publishers of The Scotsman newspaper has intimated it is to seek to find 50 per cent more cuts than originally envisaged for this year.

In an interim management statement, Johnston Press said today: “Management of costs and cash continue to be key areas of focus for the group and we expect to make total year‑on‑year cost savings in 2010 of at least £15 million, an increase from the previously advised £10 million.”

The statement covers the 18 weeks between the start of the year and last week.

During that time, total advertising revenue fell by 7.1 per cent on this time last year. Within this overall advertising performance we have seen digital revenues over the 18 weeks increase by 12.3 per cent. 

The company continues: “Advertising over the first quarter was fairly stable. However, performance in April was a little more subdued, primarily due to the General Election. We would expect the election's impact to continue through the second quarter and therefore not see any significant improvements in the current trend until Q3 2010.”

Net debt at the end of April was £419.1 million, a reduction of £3 million from the start of the year.

For more, read here.