Property ads build profits at Johnston

BUILDERS and home owners resorted to much more advertising of their properties last year, as the housing market began to slow down, according to the country's fourth-largest local newspaper group.

Johnston Press said that while revenues from property ads grew by 4.7% in the first half, this soared to 15.2% in the second six months to December on the back of higher property-related advertising.

That helped the group's overall ad revenues to better-than-expected 5.5% growth for the year pushing pre-tax profits up 18% to £150.6m. Turnover was just 5% higher at £519m.

Chief executive Tim Bowdler is now on the lookout for acquisitions, and he believes regulators will permit more consolidation in an industry where the top four groups account for 73% of all copies of local newspapers distributed throughout the country. Last year net debt was reduced by £95m to £328m.

Across the group circulations rose by 1.3%, reflecting the fact that it pushed through cover price increases at 89 of its 119 paid-for titles. But circulation of the evening titles, which include the Yorkshire Evening Post and Sheffield Star, saw an overall decline of 6.8%.

The current year has started strongly with like-for-like ad revenues up 2.6% in the first two months despite the tough comparisons with the start of last year. The total dividend has been raised 20% 7.2p which is paid out of earnings up 17% at 37.96p.