In a pre-close trading update released today (17 January) for the year ended 31 December 2022, ahead of the release of the audited results on 16 March, the business said adjusted EBITDA for its FY22 – expected to be not less than £9.4m – is ahead of market expectation, with a high single-digit increase, while its digital revenues have grown by 25%.

Revenue for the year is expected to be not less than £84m. Print revenue has declined 7% year-on-year and, despite the overall 25% digital growth, this was lower in the second half of the year at 12% as a consequence of market and audience volatility, combined with the impact of changes to Google’s search algorithm.

However, the impact on revenues was mitigated by stronger yields and increased video advertising, National World said.

Print advertising revenue fell by 6% and circulation revenue by 9%, reflecting subdued consumer confidence in the UK economy because of rising inflation and interest rates.

National World chairman David Montgomery said: “We have accelerated the group’s transformation into a premium content and sales business across all platforms in 2022. We continue to launch new products, invest in organic growth, enhance heritage assets, and streamline our infrastructure to create further efficiencies.

“Management is pursuing opportunities to build scale and enhance shareholder value through targeted investments and acquisitions. Two online content acquisitions completed at the end of 2022, Scoopdragon and Newschain, have immediately increased National World’s online audience by over 10%.

"We look ahead into 2023 with confidence given our rapidly evolving operating model to restore revenue growth and we maintain our expectations for the group’s performance."

The group said it has managed costs carefully throughout the year enabling it to support digital investments and mitigate the impact of increased newsprint prices and other inflationary cost pressures.

Its cash balance had increased by £4m to £27m as at the year end, after investment and repayment of the first tranche of the £2.5m deferred consideration payable as a result of acquiring JPIMedia Publishing and its subsidiaries (JPI Group).

In 2023 the company will pay the second and final tranche of £2.5m deferred consideration for JPI Group, and repay £1m of loan notes, making the company debt free.

National World delivered targeted annualised cost savings in excess of £4m, with restructuring costs of approximately £3m expensed in the period.

Management has accelerated the digitisation of the group’s operations and said that in 2023 it will introduce further technological enhancements to deepen engagement with customers across a wider content agenda. This will be accompanied by the launch of new products for advertisers to attract sustainable long-term revenues.

The group is currently accelerating the implementation of its new operating model, focused on building a fully digitised customer-driven business creating sustainable premium content and sales while maintaining performance in the near term.

Management said it is continuing to pursue acquisition opportunities, primarily targeting businesses that will enhance the group's digital capability.

National World’s share price was up by around 20% in early trading to 22p.