However, investors clearly lacked the publisher's confidence as Trinity's share price fell 14% following the announcement as analysts cut their 2011 profit forecasts for the company.

In its interim management statement for the 17 weeks to 31 October 2010, the company said that September's advertising revenue was below recent trends.

But it added: "The Board is encouraged by an improvement in the rate of advertising revenue decline in October to 2%."

Turnover increased 4% in the period, with advertising revenues up 13% but circulation down 4%. Net debt fell £20m to £288m in the quarter, with a further fall expected in Q4.

Similar to fellow publisher Johnston Press, Trinity is currently undergoing structural change in order to cut its cost base and the statement said that the company is on course to deliver £25m of costs savings in Q3, with a total of £60m saved across the whole of 2010.

Trinity also said that it expected further newsprint pricing pressures in 2011, following increases in the second half of 2010.

The statement added that trading in the second half of the year has remained volatile, blaming fragile economic environment and uncertainty resulting from the government's spending review.