Archant operating profit down £4m in 2011

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Regional publisher Archant has reported a drop of 29.4 per cent in group operating profit in its preliminary results for 2011, despite a rise in profit of 1.6 per cent in the second half of the year.

The results, which are based on operating profit "before amortisation and exceptional costs", show a fall to £10.4 million from £14.8 million in 2010, chairman Richard Jewson said in a statement today. Turnover was also said to be down 3 per cent to £135.1 million.

"In this trading environment balancing cost savings with the need to invest for future growth is a constant challenge," Jewson said in a statement to shareholders. "Despite high inflation generally, a 24 per cent increase in the cost of newsprint and after significant investment in training and business development, total operating costs were flat year-on-year, at £124.6 million (2010: £124.5 million)."

In the first half of 2011, Archant's operating profit "before amortisation, impairment and exceptional items" had fallen £4.4 million to £2.6 million, but the publisher reported that in the second half of the year it rose year-on-year by 1.6 per cent to £7.8 million.

Ahead of an annual report on 14 March Archant's preliminary statement today also reported that net debt had been reduced to £17.4 million by the end of the year, compared to £23.3 million in 2010.

The statement also makes reference to the ongoing Leveson inquiry , which the publisher says it will "continue to monitor", giving thanks to representatives of Archant "who have attended to represent the interests of the regional press and to differentiate it from some of the behaviours being demonstrated by elements of the national press".

"It is important shareholders know, in this regard, that we believe that no Archant journalist has intentionally broken the Press Complaints Commission's Code of Conduct whilst in our employment.

"We see a change in the regulatory environment as inevitable, but there seems to be little appetite for this to be enforced by a government regulatory body. We will strive to ensure that whatever the outcome, this does not distance us from our local communities."