Interim Management Statement

Johnston Press plc

Interim Management Statement

For the 18 week period ended 7th May 2012

Johnston Press plc today publishes its Interim Management Statement which has been drawn up for the 18 week period to 7th May 2012, this being the last practicable date as required by the UK Listing Authority's Disclosure and Transparency Rules.

Total advertising revenues (print and digital) for the 18 weeks to 7th May 2012 were down 9.1% compared with the same period in 2011. Within this overall figure, we have seen an improvement from the Q1 decline of 9.6% to a slower decline of 8.0% for Q2 to date.

While there was a year on year decline in classified print advertising revenues of 11.5% for the first 18 weeks of 2012, the position has improved from a decline of 12.4% in Q1 to an 8.9% decline for Q2 to date. Within print classified, employment was the weakest performing category, down 16.2% year on year for the 18 week period, but with the rate of decline in this category slowing from Q1 to Q2 to date: 18.3% and 9.0% respectively.

Print display advertising had a difficult start to the year, down 10.3% year on year for the first 18 weeks of 2012. In recent weeks we have seen some encouraging signs in this category although display revenues remain volatile, reflecting the economic environment.

Digital revenues have had an excellent start to the year, up 13.9% in the first 18 weeks, and showed an improvement from Q1 (9.6%) to Q2 to date (26.9%). Online display, online employment, and the Find it directory business have all been drivers of this growth. 

Circulation revenue continued to be resilient, down 2.0% year on year for the 18 week period, with a slowing in the rate of decline of weekly circulation numbers.

Costs continue to be tightly controlled. We expect that further cost savings will be achieved in 2012.

Net debt was £363.3m at the end of April 2012, which includes the payment of the fees associated with the refinancing of the company's borrowings. The continued reduction in net debt remains a key focus for the Group.

The advertising outlook for the year remains volatile, but we anticipate that the strategy that the Group has set out will provide benefits from the relaunches of all of the Group's paid-for titles during the year, along with continued improvement in digital performance throughout 2012. We expect that the results for the full year will be in line with market expectations.

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The Interim Management Statement may contain forward looking statements, which have been made by the Directors in good faith based on the information available to them at the time of the approval of the Statement and should be treated with caution due to inherent uncertainties, which are beyond Johnston Press' ability to control or estimate precisely and include both economic and business risk factors, underlying such forward looking information.