Revenues in its local media division, Northcliffe Media, bore the brunt of the decline in profits after a 65% drop in operating profit, which has led to a £50m restructuring programme of the division.

Operating margins in the division were just 7% over the year, compared with 16% in 2008, and revenues stood at £328m – down from £420m in the previous year.

The local division, which covers more than 100 regional titles, has lost in excess of 1,000 jobs so far this year – around 25% of its total headcount – and the company today warned that more cuts would need to be made.

Northcliffe's decline was offset slightly by a strong performance in DMGT's Risk Management Solutions division, which experienced an increase in revenue and operating profit of 39% and 37% respectively.

However, overall, the company posted revenues of £2.1bn, compared with £2.3bn the previous year, and pre-tax profits of £201m – down from £262m in 2008.

Chief executive Martin Morgan said: "We have actively managed the business to defend profitability during unprecedented trading conditions with a clear focus on fundamentals.

"Revenue and cost initiatives of £150m have been delivered and we have taken action on various underperforming assets across the group. We remain focused on cash generation, debt reduction and cost efficiency."