Johnston feeling an election chill

ADVERTISING in local papers took a dive last month as the plug was pulled on the Whitehall information machine either side of the general election, Johnston Press warned today.

Fears that the company, owner of the Yorkshire Post, the Sunderland Echo and a host of small-town papers, is under the cosh have seen the shares drop almost 20% in the past three months.

A warning today that advertising revenues were down by 4.7% in May sent them tumbling 10½p to 480p.

Chief executive Tim Bowdler blamed the Central Office of Information, Johnston Press's largest advertiser, which effectively closes during an election.

'What we are seeing is a very similar pattern to the 2001 general election when there was a reduction in advertising revenues of between 5% and 10% in the three months from the start of the campaign,' he said.

But he admitted business from the private sector is also hurting, with recruitment advertising down. Like-for-like ad growth is running at 1.5%.

Bowdler said ad revenues were holding up best in the North while the South was more volatile. Circulation revenues are running flat.