The loss was significantly larger than the £700,000 deficit recorded in its 2008 results. The company said that the increased loss was attributable to the write-off of £7.3m worth of intercompany loans no longer considered recoverable following group restructuring.

Excluding this exceptional item, the underlying pre-tax loss was £1.3m. Harmsworth's turnover also declined 17.5% from £223m to £184m.

The directors' report said: "Both the level of business and the period-end financial position were satisfactory.

"Although the general economic conditions continue to be uncertain, the directors have great confidence in the quality of the company's service and expect this to support revenue generation next year."

The report also mentions the closure of its Staverton, Bristol, Leicester and Grimsby subsidiaries, all of which stopped trading during in the trading period. Since then its Plymouth subsidiary has also closed, although the company's staff increased from 38 to 40.

DMGT's interim statement for the third quarter of the financial year to 4 July 2010 has also been released this week.

According to the these results, turnover was down 2% to £508m, although the company said trading was ahead of expectations.

National newspaper subsidiary Associated Newspapers' turnover fell 3% to £201m, however circulation for the national titles, Daily Mail and The Mail on Sunday, increased by 0.7%.

Regional newspaper division Northcliffe media recorded a £66m turnover, down 4%year-on-year.

Chief executive Martin Morgan said: "Trading in the third quarter has continued to reflect the generally positive trends in our international B2B and UK consumer media businesses, although we remain wary about the medium-term outlook, particularly in the UK.

"Our significant exposure to non-UK markets leaves us well positioned to continue to deliver profitable organic growth over the longer term."