Trinity Mirror's annual profit and revenue decline

But the publisher reduces net debt.

New Statesman
The front page of London's Daily Mirror newspaper. Credit: Getty Images.

The British newspaper and magazine publisher Trinity Mirror has posted a profit after tax of £77.8m for the 52-weeks ended 1 January 2012, compared to £113.3m for the same period the previous year.

Gross profit was £352.8m, while operating profit was £92.4m.

The group reported revenue of £746.6m in 2011, down 2 per cent from £761.5m in 2010. Underlying revenue fell 6.9 per cent in the first half and 0.5 per cent in the second.

Sly Bailey, chief executive of Trinity Mirror, said: “In response to the cyclical market pressures, we have undertaken a series of measures to support both revenues and profitability, including the delivery of structural cost savings of £25m during the year. Without the impact of £22m of additional costs due to newsprint price increases, adjusted operating profit would have increased year on year.”

As of 1 January, the company’s contracted net debt was £221.2m, compared to £265.9m last year.

Bailey added: “Our strong operating cash flow has enabled us to reduce net debt in the year by £44.7m to £221.2m. We have also announced today a new £110m bank facility through to August 2015, together with agreed reduced pension funding obligations for the next three years. Our resilient cash flows, improving financial position and secure longer-term financing underpin the value proposition of the business.”

The nationals division – which publishes the Daily Mirror, the Sunday Mirror and the People across the UK and the Daily Record and the Sunday Mail predominantly in Scotland – reported 2011 revenue of £453m, a decrease of 1.7 per cent compared to £460.9m in 2010.

The regionals division, which operates a portfolio of brands across England and Wales, reported 2011 revenue of £293.6m, a drop of 2.3 per cent (2010: £300.6m).

The group generated cash from operations of £93.6m in 2011, down from £110.1m the previous year. At 1 January 2012, cash and cash equivalents were £15.5m.

“Rigorous management of the business has supported profitability and delivered resilient cash flows in a challenging economic environment, while ensuring we appropriately position the business for growth,” concluded Bailey.