4th Feb 2014 09:52
LONDON (Alliance News) - Trinity Mirror PLC said it expects adjusted results for the full year ended December 29, 2013, to be ahead of expectations as it saw a better than expected end to the year.
However, the newspaper company noted that it expects to make a non-cash impairment charge of around GBP225 million in respect to its goodwill and intangible assets. Although this will not impact the company's adjusted results, it will impact its statutory profits.
It will also post a separate non cash impairment charge of around GBP700 million in relation to investments in subsidiary companies held by Trinity Mirror. It said this will result in a negative profit and loss account reserve in its balance sheet, but would not affect its statutory or adjusted results.
"The impairment charges are driven by technical accounting requirements," said Chief Executive Simon Fox in a statement. "They do not related to or impact the progress we are making with our strategy and I continue to believe that the business has significant long term potential."
Trinity said it will seek a court-approved capital reduction around the time of its full-year results announcement in order to eliminate any negative balance on the profit and loss account of its balance sheet.
Trinity Mirror said that its revenue in November and December only fell around 1% compared to the previous year. Digital revenue increased 32% in the two months, which has resulted in Trinity expected adjusted operating profit to around 4% ahead of expectations, and adjusted earnings per share just over 5% ahead of expectations.
The media group said 2014 stated in line with expectations, with revenue in January falling by 4% and digital revenue in the Publishing division up 32%. As a result, it said its expectations for the full-year 2014 remain unchanged.
Shares in Trinity Mirror were trading up 5.9% at 185.81 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Trinity Mirror PLC