RCD1, the holding company for his publishing business, has revealed pre-tax profits fell 25% in 2008 to £41.6m, according to a director's report. However, turnover only saw a slight drop, from £485m in 2007 to £483.9m.

The publishing and printing side of the business was particularly hard hit: excluding the US, the sector made a pre-tax profit of £45.1m, down from £71.2m in 2007.

Some of RCD1's profits were eaten up by extra costs incurred by West Ferry Printers, totalling £17.1m arising from pension contributions and redundancy payments.

Desmond took full control of the plant in March 2009, which was previously shared with Telegraph Media Group.

Other costs were attributed to a drop in cover price of the Daily Star and a voucher scheme for the Daily Express, which is said to have cost the company around £6.5m.

However, Desmond justified the move by claiming that it had increased market share for the Express.

This year several publishers, including Trinity Mirror, DMGT and Johnston Press revealed poor results.