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 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 2 Oil tanker with $100 million cargo goes missing off Texas coast
- 3 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 4 Lady al-Qa’ida: On the trail of Dr Aafia Siddiqui, the world’s most wanted prisoner
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
With Douglas Carswell joining Ukip, my party has taken another giant step forward
- < Previous
- Next >
iJobs Money & Business
Highly Attractive Salary: Austen Lloyd: BRISTOL - This is a very unusual law c...
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...