According to Trinity Mirror:
Key Highlights:
* Strong growth in adjusted operating profit, profit before tax and earnings per share
Strong growth in adjusted operating profit of 44.3%, adjusted profit before tax of 42.3% and adjusted earnings per share of 24.8% driven by the benefits of the acquisition of Local World and tight management of the cost base. Group revenue increased by 29.9% to £374.7 million with like for like revenue falling by 7.8%.
* Continued growth in digital audience and revenue
Continued growth in digital audience with average monthly page views on a like for like basis growing by 19% to 770 million. Like for like publishing digital revenue grew by 14.4% to £39.7 million with digital display and transactional revenue growing by 27.8% while digital classified revenue fell by 9.0%.
* Local World integration progressing well
We are pleased with the progress we are making with bringing Local World into our business and remain on track to deliver at least £12 million of annualised synergy savings by 2017.
* Strong cash generation
Strong net cash inflows resulted in net debt falling by £44.9 million from £92.9 million to £48.0 million. The Group held cash balances of £85.3 million at the period end.
* Interim dividend of 2.1 pence per share and a £10 million share buyback programme
The interim dividend has been increased by 5% from 2.0 pence to 2.1 pence per share. The Group has today announced a share buyback programme of up to £10 million reflecting the Board’s continued confidence in the cash flow generated by the Group and commitment to generating returns to shareholders.
* Pension deficit
The IAS19 pension deficit increased by £120.8 million to £426.0 million (£349.5 million net of deferred tax) driven by a fall in long term interest rates. Alongside the share buyback, the Board has agreed to contribute a minimum of £5 million or up to a maximum of 75% of the share buyback as additional funding to the defined benefit pension schemes.
* Outlook
Our strategic focus remains to grow digital audience and revenue whilst protecting print revenue and profit. Despite the challenging print environment and increased macroeconomic uncertainty arising from the outcome of the UK’s referendum on EU membership, the Board remains confident that its strategy will enable continued progress and help support the Group’s profit and cash flow.
Commenting on the interim results for 2016, Simon Fox, Chief Executive, Trinity Mirror plc, said: “I am pleased we delivered another strong performance despite the challenging print environment. We are already seeing the benefits from our acquisition of Local World last year and continue to tightly manage the cost base across the Group. Our strategic focus remains to grow digital audience and revenue whilst protecting print revenue and profit.
We are confident that our strategy and our strong balance sheet position will enable continued progress despite increased uncertainty around the economic environment.”
