Interim Management Statement

RNS Number : 1534H

Trinity Mirror PLC

15 May 2014

 



Trinity Mirror plc

15 May 2014

INTERIM MANAGEMENT STATEMENT

17 weeks ended 27 April 2014

Ahead of today's Annual General Meeting, Trinity Mirror plc is issuing an Interim Management Statement covering the 17 weeks of trading to 27 April 2014 ('the period') and describing the Group's financial position and performance, updated to the latest practicable date.

Key Highlights

·      Group revenue down 3% year on year for the 17 weeks with improving trend over the March/April period

·      Continued acceleration in digital revenues for the Publishing division with year on year growth of almost 50%

·      Significant further growth in digital audience¹ with unique users up 100% year on year to 60 million and page views in excess of 400 million

·      Continued strong cash generation with net debt falling by £26 million to £71 million

·      On track to deliver targeted structural cost savings of £10 million in 2014

·      Performance for 2014 is tracking in line with expectations

Outlook

Revenue trends improved during the period although month on month volatility prevails.  

Continued momentum on our strategic initiatives coupled with ongoing cost mitigation provides the Board with confidence that performance for 2014 is tracking in line with expectations.

Revenues

Jan/Feb Mar/Apr Apr YTD % % % Circulation (1) (1) (1) Advertising (8) (7) (7) Printing 4 5 5 Other (1) 6 3 Revenue (3) (2) (3) Publishing Digital Revenue 45 52 49

Circulation revenue remained robust with cover price increases substantively offsetting volume declines.

Advertising revenue trends improved during the period with a 9% decline in Publishing print, 47% increase in Publishing digital and a 41% decline in specialist digital. The decline in specialist digital advertising reflects the sale of the specialist property classified sites in 2013 and the restructure of the recruitment sites at the end of 2013.

The strong growth in our digital audience contributed to Publishing digital revenue growth of almost 50% during the period.

¹Average monthly unique users and page views for the Publishing Division across web, mobile and apps for January to April 2014 versus January to April 2013 (Omniture)

Revenues continued

Printing revenue benefited from higher newsprint prices and strong contract print revenues.

The 3% growth in other revenue is largely driven by strong growth in digital revenues and contract publishing for football clubs.

Cash flow and Financing

Cash flows remained strong with net debt on a contracted basis* falling by £26 million to £71 million during the period and we anticipate a further decline in net debt as we progress through the year.

The next repayment of the private placement loan notes of £44.2 million is due in June 2014 and is expected to be repaid without drawing on the Group's bank facility. Beyond 2014, there remains one repayment on the private placement loan notes of £68.3 million in June 2017.

No change in guidance for capital expenditure and non recurring costs which are expected to be £15 million and £12 million respectively for 2014.

Other matters

Having obtained court approval on 30 April 2014 for a reduction in the share premium account to eliminate the deficit on the Company's profit and loss account reserve, the Company will rebuild distributable reserves from this date.

The Company continues to co-operate with the police in respect of Operation Elveden (the investigation relating to alleged inappropriate payments to public officials) and Operation Golding (the investigation into alleged phone hacking). The Company also continues to challenge civil claims in relation to these matters. The Group will not accept wrongdoing and takes all allegations seriously. It is too soon to know how these matters will progress, whether further allegations or claims will be made, and their financial impact.

Enquiries:

Trinity Mirror plc

Simon Fox, Chief Executive                                                   020 7293 3553

Vijay Vaghela, Group Finance Director                                   020 7293 3553

Brunswick

Mike Smith, Partner                                                                020 7404 5959

Nick Cosgrove, Partner                                                          020 7404 5959

Forward looking statements

Statements contained in this Interim Management Statement are based on the knowledge and information available to the Company's directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Company in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Company undertakes no obligation to update these forward looking statements.

 

END

 

 

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