In its latest trading statement, Trinity Mirror, which publishes national titles The Daily Mirror, Sunday Mirror and The People, said that better-than-anticipated trading in November and December last year was behind the improved forecast.
The company anticipates adjusted operating profit for the year to be 4% ahead of market expectations and adjusted earnings per share to be just over 5% ahead.
Meanwhile, the company anticipates a non-cash impairment charge, relating to goodwill and intangible assets on the consolidated balance sheet, of around £225m.
A separate non-cash impairment charge of £700m on the company balance sheet, relating to the writing down in value of subsidiary companies, will result in a negative profit-and-loss account, although it will not impact statutory or adjusted group results, according to the company.
“I am pleased with the group’s performance for 2013, which is ahead of our expectations following a better-than-anticipated end to the year,” said chief executive Simon Fox. “The impairment charges are driven by technical accounting requirements. They do not relate to or impact the progress we are making with our strategy and I continue to believe that the business has significant long-term potential.”
In line with expectations, group revenue for January fell by 4% while digital revenue for the publishing division increased by 32% year-on-year.
A further £10m in structural costs changes are anticipated during 2014, in addition to the £10m implemented in 2013, as well as “ongoing cost mitigation actions to ensure the group has adequate headroom for investment whilst supporting profits and cash flows”.
The company said it expected continued market volatility during the early part of the year but that an improvement was anticipated as the year progressed and overall expectations for 2014 remained the same.
Trinity Mirror will announce its full-year results, for the 52-weeks ended 29 December 2013, on 13 March 2014.
Following the announcement, share price rose 5.5p during morning trading to 181p.
