Operational Changes at Northcliffe Newspapers Group

29th Jun 2005 07:57

29th June 2005 Daily Mail and General Trust plc (`DMGT') Operational Changes at Northcliffe Newspapers Group Northcliffe Newspapers, the regional newspaper division of DMGT, has todayannounced a two year programme of organisational and structural improvements.These are designed to increase the operational efficiency of Northcliffe bytaking advantage of the substantial investments already made and planned to bemade in the business.The programme aims to achieve cost savings of at least ‚£20 million per annum.In the current financial year, Northcliffe expects to incur exceptional costsof approximately ‚£6.5 million for the first phase of the programme (of whichapproximately ‚£3.5 million is non-cash).The announcement follows five years of investment in plant and IT equipmenttotalling‚£150 million and the planned investment of ‚£100 million over the next threeyears. The biggest element of this new investment is expected to be a new pressfacility in North Lincolnshire, which is scheduled for completion by December2007.The programme includes the possible closure of older Northcliffe presses inExeter, Hull, Grimsby and Lincoln as a result of these investments.Commenting on the announcement Michael Pelosi, Managing Director of NorthcliffeNewspapers said:`Over the last five years we have invested substantially in new presses andimproved technology as part of our continued commitment to producing highquality regional newspapers with strong editorial content. We have consistentlyfollowed a strategy of publishing market leading local newspapers and websiteswhich cater for the needs of our readers and advertisers. These organisationaland structural changes announced today will help us to continue this successfulstrategy in the highly competitive and rapidly changing local newspapermarket.'Enquiries to:Michael Pelosi, Northcliffe Newspapers, Tel. 020 7400 1109Andrew Honnor/ Peter Hewer, Tulchan Communications, Tel. 020 7353 4200Nicholas Jennings, Company Secretary, DMGT, 020 7938 6625ENDDAILY MAIL & GENERAL TRUST PLC

---

Related Shares:

DMGT.L