January 25 2015 Latest news:
Friday, March 7, 2014
Archant, the community media business, has announced a healthy increase in operating profits for the last year to £9.4m.
In a preliminary statement to shareholders, chairman Richard Jewson said results in the year to December 31, 2013, saw operating profit before amortisation, impairment and exceptional costs at £9.4m (2012: £6.3m) up 49.2pc on full year turnover down 3.6pc at £126.6m (2012: £131.4m).
Mr Jewson said these were achieved “despite continuing industry challenges and with little help from the economy.”
Net debt at the end of the year stood at £6.8m (2012: £15.7m), reflecting strong cash generation in the year.
Mr Jewson said: “Our traditional newspaper businesses improved profitability year-on-year. However, challenges in our magazine businesses caused a decline in magazine profitability. Significant efforts have been placed on monetisation of our digital offerings, resulting in a 19.3pc increase in digital revenues to £7.2m.”
Cost management, together with a reduction in newsprint costs, saw total operating cost savings of £7.9m, with continued investment in training for the sales forces and in new product development.
“We will continue to shape the business to the changing requirements of our customers, who, of course, are also feeling their way into this changing world,” said Mr Jewson. “Whilst we expect to see an improvement in our revenues this year, economic growth will inevitably give rise to cost pressures.”
Aviva will embark on a cost-cutting drive leading to 1,500 job losses if its £5.6bn takeover of Friends Life wins the backing of shareholders.