In contrast, Trinity Mirror said it had nearly halved its debt over the same period from £93m to £48m in its half-year financial report earlier this week.
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Johnston Press said operating costs were also down 8.9 per cent to £88.3 million, “reflecting the need to balance tight cost control with investment in the business”.
Johnston Press also said on Thursday it was too early to assess how Britain’s vote to leave the European Union would affect the company’s revenue, a stance that its larger peer Daily Mail (DMGOa.L) has also taken.
The group said that while the board is encouraged by the improved Q2 performance in several parts of the business, overall performance for the 26 week period was marginally below expectations.
Mr Highfield addressed rumours swirling in the City that The Scotsman and other leading titles are for sale….
The company said the acquisition of the i newspaper, which completed earlier this year, resulted in an increase in circulation revenue of 2.3% to GBP38.4 million, with its performance offsetting declines in pre-existing titles. The publisher of the i national newspaper and many regional titles added it continued to experience challenging advertising trading conditions during the period.
However print advertising – excluding classified – were down 10.3 per cent to £32 million and digital advertising – excluding classified – was up 1.6 per cent to £9.3 million.
The market continues to be challenging and uncertainty surrounding the outcome of the Brexit negotiations has caused further softness in some segments of the advertising market, in June and July.
The group’s shares fell by 16% to 11.55p in morning trading.
“In that respect, we are nearing completion of the disposal of our Isle of Man newspaper group for £4.25m and are well advanced in negotiations for further divestments”.
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Johnston Press has been battling a fall in advertising spending, much like other publishers, and has resorted to cutting jobs at an average rate of 12.2 percent in the last five years to reduce costs.
