Johnston contract revenues drop but profits rise

Johnston Press has reported a dip in contract printing revenues as it gears up to start installing its triple-width presses at Portsmouth and Sheffield.

No figures were revealed for the extent of the drop, which interim results released today blamed on the closure earlier this year of a Goss Community heatset press at Johnston's Portsmouth site.

It has been closed to make way for a triple-width MAN Roland Colorman, which will contract print News International titles as well as producing Johnston's regional newspapers.

Alongside the 45m investment at Portsmouth is the regional publisher's 60m spend on a new plant at Dinnington, which will replace the group's Sheffield plant and will also house a triple-width Colorman.

The results statement said that both projects were advancing on schedule and to budget.

Overall, Johnston posted a 9.3% year-on-year increase in pre-tax profits for the six months to 30 June 2005, up to 82.2m, despite warnings that the advertising climate would not improve in the second half. Turnover edged up 1.2% to 264.6m.

Johnston said that much of that growth had been driven by tight cost control and 30 new product launches since January this year, with a particularly high 32% revenue hike in its online operations.

The recent 155m acquisition of Score Press was also expected to make its first major contribution in the group's full-year results.

Tim Bowdler, chief executive, said: "We do not anticipate any improvement in the advertising environment in the second half although the year-on-year comparatives do get slightly easier.

"Therefore, we will continue the tight management of costs and this, together with increased operational efficiency as well as the first contribution from Score Press, should ensure a satisfactory result for the year as a whole."

Story by Josh Brooks