However, according to its interim management statement for the 18-week period to 8 May 2010, the company still has debts of more than £400m and it reported a 7.1% drop in like-for-like advertising revenue.

According to Johnston, advertising performance in April was "subdued", although the company has put this down to the general election, which it said will continue to impact in the second quarter.

Chief executive John Fry said management of costs and cash continued to be key areas of focus and he expected to make year-on-year cost savings in 2010 of at least £15m – an increase from the previously advised £10m.

Net debt at the end of April 2010 stood at £419.1m, a reduction of £3m from the start of the year.

Fry added: "Despite the slightly softer advertising performance anticipated in the second quarter, we expect our continued management of costs to produce full-year results in line with current market expectations."