Bowdler, 60, is preparing a succession strategy and has called in headhunters to begin the search for his replacement.

The company said in a statement: "The board will be commencing a formal selection process in 2008 with a view to identifying the right candidate and ensuring a smooth handover in 2009."

The move comes as the company set a cautious eye on next year, off the back of a predicted cut in media advertising spend.

Overall advertising revenues for the five months ending 30 November 2007 increased by 0.2%, while like-for-like UK print advertising revenues declined by 0.8%.

The figures represent a near full recovery from respective reductions of 1.5% and 2.9% in the first half of the year.

Despite anticipating a "satisfactory outcome" for the year as a whole, the board warned of "recent turmoil in world financial markets" and said it expected "consequential effects on the domestic economy and consumer confidence".

A slowdown in the local economy hit property advertising in the Republic of Ireland, which proved to be the company's weakest point, with revenue down 1.2%, compared with growth of 10% in the first half.

In comparison, growth in digital revenue increased 35.3% over the same period last year, while the company expects its new iAnnounce online service, which allows users to set up a dedicated page to celebrate personal events, to drive "significant" revenue growth.

The group also reported that the integration of Archant's Scottish titles has now been completed, with cost savings being delivered "ahead of plan".

The figures relate to the second half of the financial year ending 31 December 2007, ahead of its preliminary results announcement in 5 March 2008.

Shares in Johnston Press dropped 1.6% to 252.25p earlier today following an initial 6.9% slump on the release of its trading update.