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5 Jun 2018 07:00
5 June 2018
Johnston Press plc
AGM TRADING UPDATE
Johnston Press plc ("the Group"), one of the UK's foremost news publishers, issues a trading update for the period from 1 January 2018 to 31 May 2018 and an update on its Strategic Review, ahead of its AGM today.
Trading and Outlook
Trading so far this year has seen Group revenues down 9%, but a continuing strong performance from the i newspaper. Expectations for the full calendar year 2018 remain in line with market expectations.
The trading environment remains extremely challenging, exacerbated in recent months by uncertainty around future paper costs and the impact of GDPR on digital advertising revenues. We expect 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 £24.6 million.
Strategic Review Update
On 29 March 2017, the Group announced it had commenced a Strategic Review to assess the financing options available to the Group in relation to its £220 million 8.625% senior secured notes, which become due for repayment on 1 June 2019 (the "Bonds"). The Board subsequently announced on 2 November 2017 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 the Group's pension scheme.
No agreement on these potential amendments has been reached. 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.
Enquiries:
Johnston Press plc
Peter McCall, Company Secretary Tel: +44 (0)131 311 7500
Powerscourt
Peter Ogden Tel: + 44 (0) 20 7250 1446
About Johnston Press
Johnston Press is a leading multimedia business with a vibrant mix of news brands that reach national, regional and local audiences. We provide news and information services to local and regional communities through our extensive portfolio of hundreds of publications and websites.
Sharing information and opinion remains at the heart of what we do and our titles, which include iconic publications such as the i newspaper, The Scotsman, The Yorkshire Post and News Letter in Northern Ireland are read via traditional print, online platforms and mobile devices by 37.8 million people every month.
We are experts in combining national reach with local targeting and are better equipped than ever to help advertisers tell their stories, too, through our trusted platforms.
Forward-looking statements
The report contains forward-looking statements. Although the Group believes that the expectation reflected in these forward-looking statements are reasonable, it can give no assurance that the expectations will prove to have been correct. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward looking statements. The Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Market abuse regulation
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
Johnston Press Legal Entity Identifier: 213800JFIBCR4LGUA242 Classification: Inside Information.
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