Reach Plc Regulatory News (RCH)

13 February 2015

Trinity Mirror plcTrading Update

In its 2014 Interim Statement issued on 28th July 2014, Trinity Mirror plc ("the Company") highlighted its intention to deal with and resolve civil claims from individuals in relation to phone hacking. Furthermore, on 24th September 2014 the Company announced that its subsidiary MGN Limited ("MGN") had admitted liability to four individuals who had sued MGN for alleged interception of their voicemails.

As the process of dealing with the civil claims has progressed, it has become evident that the cost of resolving these claims will be higher than previously envisaged. Therefore, at the full year the Company will increase the provision charged for dealing with and resolving civil claims, announced in its Interim Statement, by £8 million to £12 million. Inevitably there remains some uncertainty as to how matters will progress and whether or not new allegations or claims will emerge and their possible financial impact. 

The Company continues to co-operate with the Metropolitan Police Service in their ongoing investigations and it takes all allegations seriously. The Company has today published an open apology to the victims of phone hacking in the Daily Mirror and plans to publish the same apology in the Sunday Mirror and Sunday People this weekend.

The Company expects adjusted profits and earnings per share for the 52 weeks ended 28th December 2014 to be marginally ahead of consensus forecasts with strong cash generation enabling a reduction of net debt to below £20 million after pre-paying £17 million of pension deficit funding payments due in future periods.

Net debt has fallen further since the year end following receipt of special dividends from Local World of £12 million.

The 2014 Annual Results will be announced on 2nd March 2015.

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