The publisher recorded a £38.3m operating loss before exceptional items for the year, compared to £37.8m the previous year, as it continues to drain the cash reserves at its benefactor the Scott Trust, which was set up to ensure the Guardian newspaper could survive regardless of the financial climate.

Turnover for the business dropped from £221m to £198.2m, while it also announced savings of £26.8m.

Overall, Guardian Media Group, which owns Guardian News and Media, recorded a group operating loss of £54.5m, worsening from £53.9m in 2009/10, while its turnover for continuing businesses excluding revenues from joint venture companies EMAP and Trader Media Group, fell from £280m to £255.1m.

GMG chair Amelia Fawcett said: "While the Guardian is supported by GMG, it does not operate in a vacuum. The forces of change continue to sweep through the industry.

"The Guardian, like other parts of the group, has demonstrated great ingenuity and vision in adapting to the digital age. The challenge facing us, and news organisations across the world, is how to translate digital audience growth into commercial success."

Meanwhile subsidiary business Trader Media Group recorded an operating profit before exceptional items of £120.1m, up from £111.7m last year, 85% of which was generated via digital operations.