MIN profits rise to pounds 13.6m

Midland Independent Newspapers, which is the subject of an agreed pounds 297m takeover bid from Mirror Group, reported a sharp rise in half-year profits yesterday and said it did not expect the deal to be blocked by the competition authorities.

The deal is being scrutinised by the Monopolies and Mergers Commission, which is due to report its findings to the Department of Trade and Industry at the end of this month. "There is no precedent for a deal like this being blocked," said MIN's chief executive, Chris Oakley.

MIN, which owns 44 newspaper titles including the Birmingham Post, Evening Mail and Coventry Telegraph, reported a 64 per cent increase in pre-tax profits to pounds 13.6m for the six months to 29 June. The figures exclude pounds 2.1m of exceptional charges caused by redundancy costs and pounds 900,000 of advisers' fees relating to the Mirror Group deal.

Profits were also boosted by first-time contributions from the acquisitions in May of the Hinckley Times and Loughborough Echo titles. These added pounds 5.7m to half-year turnover.

Though sales of its flagship titles were flat or showed slight declines, circulation revenue increased by pounds 300,000 to pounds 11m, helped by cover price increases. Profits were boosted by a sharp fall in the cost of newsprint which put pounds 2m on the bottom line in the half year. Advertising revenue increased by 24.5 per cent with recruitment advertising strong.

Mr Oakley said a loyalty scheme for the Birmingham Mail was working well. There are 45,000 holders of a loyalty card which offers money off at a range of retailers as well as a retrospective rebate for people who buy the Mail all week.

Birmingham L!ve, the joint venture television company with Mirror Group, has attracted 200,000 viewers. MIN's share of station's first-half losses was pounds 177,000. MIN said it was part of three consortia bidding for three radio new licences which are set to be granted by the Radio Authority.