DMGT confirms closure of Grimsby site as it posts profits drop
By Adam Hooker Monday, 24 November 2008
Daily Mail and General Trust (DMGT) has become the latest newspaper publisher to blame a lack of advertising revenue for poor results as it confirmed the closure of its Grimsby printing plant.
In its latest annual figures, to the year end 28 September 2008, the company's newspaper arms both recorded drops in profits.
Associated Newspapers, the national newspaper subsidiary, recorded a profit drop of 13% on 2007 to £73m, while regional division Northcliffe Media fell from £93m to £68m – a drop of 26%.
Earlier this month both Trinity Mirror and Johnston Press released profit warning statements. Both companies attributed the profit drops to significant falls in advertising revenue.
Despite relatively strong performances in its national newspaper division, which saw print advertising revenue drop just 2%, DMGT has not been immune to the worsening economic climate.
Property advertising at Northcliffe was down 22% for the year, reaching a low point in September that was just half the 2007 figures.
Martin Morgan, chief executive at DMGT, said: "The worsening economic conditions had an adverse impact on the newspaper and property businesses but our B2B divisions continued to perform well.
"The short-term outlook remains difficult and we are taking decisive action to defend profitability. However, the group's strong cash flow will also allow continued selective investment to ensure our businesses achieve their full potential."
DMGT also announced that its Grimsby printing plant, which went into consultation for closure in September, will close by the end of the year.
Latest jobs Jobs web feed
- Sales Executive (Home based) Key Recruitment £40K ( negotiable ) plus commission plus car and mobile, Essex, London, Hertfordshire, Surrey
- Print Buyer Pyramid Consultancy Ltd £25,000 - £30,000pa, company car, phone, lap top , London
- Print Estimator | Exhibition & Display Print | North West Mercury Search and Selection £25k , Manchester
- UK Sales Manager | Self Adhesive Labels | UK - Home Based Mercury Search and Selection £32k-£40k + Attractive commission structure, pension, life insurance, car, laptop & smart phone , UK - home based
- Account Director - Reprographics/ Mail Room - London asg Up to £45,000 + bonus + benefits, London
- UPDATED: St Ives hits the acquisition trail again
- Swiss Post acquires Pitney Bowes' UK and Ireland management services business
- Konica Minolta makes progress with B2 inkjet
- Warwick Printing Company to install UK's first Speedmaster SX 102
- Wyndeham extends major print contract
- UK launch for Exaprint W2P service