Chairman Roger Parry said in a statement to investors that new presses in Dinnington and Portsmouth were now fully operational, delivering increased contract print revenues.

"Economic growth in the UK and Ireland for 2008 is expected to be slower than that achieved last year," Parry said, adding that he expected the advertising market to remain challenging.

However, Parry said: "We will have the benefit of reduced newsprint prices during the year and expect to maintain a tight control over the other costs of the business, in part as a result of continued investment in IT systems to drive further operating efficiencies."

The company, headed by chief executive Tim Bowdler, reported a 6.3% fall in profit before tax and non-recurring items to £137.4m for the full year ended 31 December 2007. This was despite a 0.9% rise in revenue to £607.5m.

In its statement to investors, Johnston Press pointed to the "resilience" of print and said the rate of advertising decline had slowed during the year. In particular, the company invested in new print publications to expand its reach and provide further advertising opportunities, such as the launch of City Lite editions in Leeds and Sheffield and weekly newspapers in Aylesbury and Peterborough.

Meanwhile, the company has been investing heavily in its online portfolio, and said the audience of unique users was up 24% and digital revenue up 34% to £15.1m.