Johnston Press notes tough trading but leaves expectations unchanged

News publisher Johnston Press updated the market on its trading for the year to 31 May, reporting that trading so far this year had seen group revenues down 9%, although it did note a a continuing strong performance from the i newspaper.

The London-listed firm said expectations for the full calendar year remained in line with market expectations, as investors gathered for the company’s annual general meeting.

It said the trading environment remained “extremely challenging”, exacerbated in recent months by uncertainty around future paper costs and the impact of GDPR on digital advertising revenues.

Johnston Press said it expected to see continued pressure on revenues in the second half of the year, and a requirement for cost savings.

Cash at bank at the end of May was £24.6m.

On 29 March last year, the group had announced the commencement of a strategic review to assess the financing options available to it in relation to its £220m, 8.625% senior secured notes, which would become due for repayment on 1 June 2019.

The board then announced on 2 November that an ad hoc committee of bondholders had been formed to consider certain potential amendments to the group's capital structure, combined with certain proposed amendments to its pension scheme.

“No agreement on these potential amendments has been reached,” the board said in its statement.

“However, the group is continuing to work with the ad hoc committee and its other stakeholders on a number of alternative strategic options for the restructuring or refinancing of the bonds prior to June 2019.

“As stated in the group's 2017 annual report, any proposal that results from these discussions will remain subject to negotiation and consent of relevant stakeholders, and there can be no certainty that a formal proposal will be forthcoming.”