DMGT confirms closure of Grimsby site as it posts profits drop

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.