Accounts released yesterday show that the GMG's huge spend on MAN Roland and Wifag presses at Newsfax, Trafford Park Printers and Trinity Mirror's Oldham plant has caused group pre-tax profits to drop from 43.6m last year to 22.9m this year.

The group now says that it has spent 80m at Trafford Park and Newsfax on its three MAN Roland Colorman presses and other finishing and pre-press kit, up from a previously-stated total of 62m.

It also revealed that its share of the 45m joint venture with Trinity Mirror at Oldham, where GMG's Manchester Evening News will be printed, amounted to 24m.

The drop in profit came in spite of increased turnover at the group, largely thanks to a huge increase in turnover at magazine print arm Trader Media Group (TMG), which also owns Auto Trader.

GMG's total turnover rose to 751.9m in 2005, compared to 634.8m in 2004. Much of this rise was due to a 50% year-on-year increase in turnover at TMG to 304.9m. TMG also added 85.4m pre-tax profit to the group.

Re-pressing plans hit the group's national newspaper division hardest. It posted a loss after exceptionals of 48.3m, a huge increase on last year's 6.2m loss, despite a 3% growth in turnover to 233.8m.

Profits at GMG's regional newspapers were also hit by the print investment. While turnover rose 9% to 138.3m, profit before exceptionals fell from 30.7m in 2004 to 22.0m this year.

GMG chief executive Bob Phillis said that the "landmark" decision to switch to the Berliner format "is placing enormous demands on staff".

"But the decision... will allow us to leap ahead of the rest of the market and publish the first of a new generation of full-colour newspapers.

"This new format, never before seen in the UK national newspaper market, will allow us to retain editorial integrity within a more convenient format, while offering real distinctiveness and fresh creative opportunities to advertisers."

Story by Josh Brooks