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Ashley Highfield Johnston Press

Writes off half the value of newspaper properties

7 Aug, 2016

Johnson Press announces it is taking a£183.6 million impairment charge (£216.9 million gross, net of £40.3 million in deferred tax), lowering by nearly half the value of the company. The action sends the company’s stock down over 18 percent. The Company also announces revenue drop of 9.7 percent in the second quarter, with ad revenue falling 15 percent. Net debt grew to £209.4 million due to the acquisition of the i in April for £22.0 million. Highfield:

The market continues to be challenging and uncertainty surrounding the outcome of the Brexit negotiations has caused further softness in some segments of the advertising market, in June and July. Nevertheless, we are focused on our strategy of increasing overall audiences, maximising opportunities for the i, maintaining tight cost control and rebalancing our portfolio. In that respect, we are nearing completion of the disposal of our Isle of Man newspaper group for £4.25 million and are well advanced in negotiations for further divestments.