Johnston cheers market with £485m financing deal
Saturday 29 August 2009
Johnston Press, the beleaguered regional publishing group, cheered investors yesterday despite plunging profits after it successfully secured a £485m debt deal with its banks.
The group, which was forced to once-more deny rumours it was planning to sell The Scotsman, saw pre-tax profits fall 56 per cent to £27.5m in the first half year on year. It said the first half had been "significantly impacted by the recession in the UK and Republic of Ireland". The business was largely hit by the slump in the advertising market which has smashed much of the media industry. The group said total advertising revenues were down 32.7 per cent on the same period in 2008.
Yet the shares rose almost 10 per cent to 38p on news of the finance facilities, which will cover the next three years. Johnston said the move provides a "stable financial platform, allowing the group to actively manage through the current cycle".
Chief executive, John Fry, said: "The timing of the economic upturn remains uncertain but advertising revenues are demonstrating greater stability and we expect the cyclical improvement when it comes to more than compensate any ongoing structural change."
- 1 The difference between a migrant and refugee, in one sentence
- 2 Miley Cyrus calls out hypocrisy of women’s nipples being taboo
- 3 Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
- 4 iPhone 5c to be discontinued, no iPhone 6c to replace it
The difference between a migrant and refugee, in one sentence
Spain accused of 'provocation' after letting Russian submarine refuel off Gibraltar
Allonautilus scrobiculatus: World's 'rarest' creature spotted for only the third time ever
Miley Cyrus calls out hypocrisy of women’s nipples being taboo
Celebrity Big Brother 2015: Tila Tequila kicked off show after 'describing Hitler as a good man'
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...