Operating profit, excluding non-specified exceptional items, for the 18 weeks to 2 November was up 7.8% year-on-year with operating margins improving to 20%. This was attributed to a continued focus on cost-base reduction resulting in a total 10% year-on-year cost reduction of £32.4m.

Following the relaunch of the group's 227 titles, print circulation revenues were down 4.3% and although total advertising revenues were down 6.8% in the period, the rate of decline slowed from 13.6% recorded in the group's 2013 first half interim results. 

As a result of the publisher’s ongoing investment in its digital strategy, which saw the relaunch of all of its 196 websites in September, revenue growth from its digital lines shot up by 32% year-on-year across the 18-week period and by 44.7% in October alone. 

The company’s Midlands publishing unit became the first in the business to reach what it called a digital “tipping point” where local display advertising revenue during September “outstripped” the continued decline in local print revenue. 

Around half of advertisers now advertise online as well as in print with a conversion rate of 49.7%. Meanwhile the number of unique digital users reached 13.7m in October, a 39% improvement on last year. 

Johnston Press’chief executive Ashley Highfield said the digital growth strategy was making good progress and that the results were encouraging.

“Digital revenue growth remains a priority and the Midlands reaching a ‘tipping point’ in local display advertising is a highlight for the business. It remains a key goal for the whole group to reach the point where digital growth will offset any further decline so we can return to overall top-line growth.”

Highfield added that cost-base reduction remained a priority as well as ongoing investment in digital products. Reduction of the group’s debts, which stand at around £306m, is ongoing with the figure 5% lower than at the same period last year. 

No mention was made however, of recent negotiations with lenders, to hammer out a new financing deal by the middle of next year, that would further reduce the company’s debt burden.  

Taking into account the impact of increased paper costs and further digital investment and providing the trading environment remains satble, the business forecasted a full-year operating profit for 2013 "to approach the mid-range of market expectations". 

Share price was down 0.6p to reach a 52-week low of 14.0p at the time of writing (52 week high: 15.06p)