Mirror halts shares fall with defence of finances
Thursday 17 July 2008
Trinity Mirror was forced to make a formal statement on its financial health yesterday after analyst concerns spooked the market and the media group's stock dropped by 18.6 per cent in a single day.
Against a backdrop of newspaper advertising stung by both online competition and economic uncertainty, Trinity Mirror's shares have fallen by a massive 61 per cent since the company issued a profit warning at the end of last month, and 85 per cent since the start of the year. But the stock bounced up by 10.5 per cent to close at 60.5p after yesterday's statement, which confirmed that it is both cash generative and trading within its revised expectations.
The latest wave of distrust in Trinity stock came after Kaupthing expressed concern that the publisher might struggle to raise the money in the event that its pension schemes need topping up when they are valued at the end of the year.
The Icelandic bank also raised the possibility of breached banking covenants if a full-blown recession caused even more problems in the ad market.
The company was unequivocal in its denial. "Trinity Mirror is trading comfortably within the covenants for its debt facilities," it said. "There are no liquidity issues with any of our pension schemes and deficits continue to be funded in accordance with payment schedules agreed with the trustees."
Even with such assurances, Trinity is still a source of scepticism in the City. Landsbanki, while maintaining its overall "hold" rating, cut its target price by 3p to 57p. Andrew Walsh, an analyst at the bank, said: "The key risk remains the weakness of the advertising market, although we recognise that our current estimates – in the regionals if not the nationals – represent record two-year falls."
- 1 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 2 Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
- 3 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
UK weather: Warning for more snow and ice as freezing temperatures and gales hit Britain
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as King's Cross train delays add to snow on roads
The Unluckiest People of the Year 2014 (and one very unlucky giraffe)
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Immigrants make UK racist, says Ukip councillor Trevor Shonk
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...