Last checked at 16 Dec 2016 07:00
16 December 2016
This announcement contains inside information.
Trinity Mirror plc
Trading Update
We continue to make good progress against our strategic initiatives whilst supporting profits and delivering strong cash flows. The Board is confident that performance* for the year will be marginally ahead of expectations, with net debt falling to around £35 million by the year end, significantly better than expectations.
Group revenue** on a like for like basis is expected to fall by below 8% in the fourth quarter compared to a decline of 9% in the third quarter and a decline of 8% in the first half. Publishing revenue is expected to fall by 8% in the final quarter with print declining by 10% and digital growing by 8%. Print advertising and circulation revenue is expected to fall by 17% and 5% respectively. Classified digital revenues, which are substantially jointly sold with print, continue to remain under pressure but we are expecting to deliver strong growth in digital display and transactional revenue of 18%.
The Group has acquired 2.5 million shares for £2.3 million under the £10 million share repurchase programme announced in August.
The Group has disposed of its office building in Cardiff, which is only partially occupied by our business, Media Wales, for net proceeds of £7.8 million.
We have made good progress on settling civil claims arising from phone hacking with damages for over 80% of claims now settled. However, to maintain momentum in bringing the process to a conclusion it is clear that costs, in particular the claimants' legal costs, will be higher and this has caused us to increase the provision for dealing with these historic matters by £11.5 million. Including this increase the provision remaining at the end of this year is expected to be around £22 million. Although there still remains uncertainty as to how these matters will progress the Board remains confident that the exposures arising from these historic events are manageable and do not undermine the delivery of the Group's strategy.
The person who arranged for the release of this announcement on behalf of Trinity Mirror was Vijay Vaghela, Group Finance Director and Company Secretary.
Enquiries
Trinity Mirror 020 7293 3553
| Brunswick 020 7404 5959 |
Simon Fox, Chief Executive Vijay Vaghela, Group Finance Director | Mike Smith, Partner Will Medvei, Director |
The statement on future performance is given as at the date of this announcement and is subject to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in the statement. The Company undertakes no obligation to update this forward-looking statement.
*On an adjusted basis excluding non-recurring items, restructuring charges in respect of cost reduction measures, the amortisation of intangible assets, the pension administrative expenses, the retranslation of foreign currency borrowings, the impact of fair value changes on derivative financial instruments, the pension finance charge and the impact of tax legislation changes.
** Like for like assumes Local World was owned from the beginning of 2015 and excludes revenue from the Independent print and distribution contract which ceased in April 2016, revenues from Rippleffect which was sold in August 2016 and revenue from the contract to publish the Rugby World Cup match day programmes in 2015. The fourth quarter compares the 13 weeks to 1 January 2017 with the 13 weeks to 3 January 2016. The first half compares the 27 weeks to 3 July 2016 with the 27 weeks to 5 July 2015. 2016 will be a 53 week period and the additional weeks trading is included in the first half of the year.