Johnston Press shares surge as CEO stands down

Johnston Press chief executive Ashley Highfield has chosen to stand down ahead of negotiations over a key bond refinancing.

Highfield, having spent almost seven years in the role, agreed with owner of The Scotsman and i newspapers that it was best he did not put himself up for re-election at the AGM, citing both "family reasons" and his desire to transition to the "next phase of his career" as a plural non-executive director.

As a result of Highfield's resignation, Johnston will promote David King from chief financial officer of the local newspaper publisher to replace him.

Camilla Rhodes, chairman of Johnston Press, said, "On behalf of the board, I would like to thank Ashley for his significant contribution since becoming CEO in 2011. We are sorry that he felt that his personal circumstances required a change at this time."

"Ashley oversaw the successful acquisition of the i newspaper, has driven growth in our digital footprint, while making substantial progress in reorganising and restructuring our business. We wish him every success in the next phase of his career," he added.

Johnston Press, which owes £220m in bonds which are set to mature in 2019, faced pressure for a management and strategic rejig from major activist shareholders last year. Currently, activists Custos Group and Crystal Amber together own more than 30% of the shares.

Results for 2017 in April, including more than eight months since the i acquisition, showed adjusted operating profits down 9% £40.1m, largely in line with expectations, of which the new addition delivered £9.3m.

As of 1032 BST, shares had gained more than 16% to 9.48p.