|
|
|
|
|
Presentation overview |
|
|
|
Sir Victor Blank, Chairman |
|
Philip Graf, Group Chief Executive |
|
Joe Sinyor, Chief Executive, Newspapers |
|
Margaret Ewing, Group Finance Director |
|
|
|
|
Financial highlights
26 weeks to 1st
July 2001 |
|
|
|
Turnover
growth 3.8% to £581.4m, like-for-like growth 1.1% |
|
Operating profit pre digital £121.8m, down 6.5%(1),
like-for-like down 4.9% |
|
Investment in digital media £15.0m (2000: £12.8m) |
|
Earnings per share 19.5p(1), down from 21.8p |
|
Dividend per share 5.3p –
same as 2000 |
|
|
|
|
Exceptional items and profit improvement
26
weeks to 1st July 2001 |
|
|
|
Strategic and profit improvement plans |
|
Cost H1
£2.3m and estimated H2 £8m |
|
Saving
H2 £9.0m and 2002 estimated £25m-£28m |
|
Refocused digital media strategy |
|
Cost H1
£2.3m – reduced ongoing annual
investment £15m (including investment in Fish4) |
|
Restructuring group finance systems – to support
strategy |
|
Cost H1
£3m |
|
|
|
|
|
|
|
|
Strong cash flow
26 weeks to 1st July
2001 |
|
|
|
|
|
Performance highlights |
|
|
|
Advertising |
|
Strong growth first quarter – display weak in
second quarter; classified remains strong but market tightening |
|
Visibility limited |
|
Circulation - trend of decline continued –
minimised
by activity |
|
Newsprint – 12% increase from 1st
January 2001 |
|
|
|
|
Regional newspapers
26 weeks to 1st
July 2001 |
|
|
|
|
UK national newspapers
26 weeks to 1st
July 2001 |
|
|
|
|
Scottish national newspapers |
|
26 weeks to 1st July 2001 |
|
|
|
|
|
|
Digital media
26 weeks to 1st July 2001 |
|
|
|
Refocused strategy in March |
|
Closed
central ic portals |
|
Launched 13 ic regional sites – closely aligned with regional
newspapers |
|
Continued investment in Fish4 |
|
Total cost H1 £15m |
|
|
|
|
|
|
Other assets |
|
|
|
Agreed sale of certain Midlands assets to
Johnston Press for £16.5m |
|
Agreed sale of ISP, ic24, for £4.5m cash |
|
Magazines and exhibitions – retain in group |
|
PA Sporting Life sale process continues |
|
|
|
|
Trading outlook |
|
|
|
Display and classified advertising market
remains difficult – limited visibility |
|
All businesses undertaking cost reduction
initiatives |
|
Early implementation of strategic plans |
|
|
|
|
Overview |
|
|
|
Strategy: practical “nuts and bolts” |
|
True leadership of UK newspaper industry |
|
Regionals: a very strong platform for the future |
|
Nationals: optimise value, maintain circulation
market share |
|
Growth: new business development approach |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capturing the benefit of increased regional
coordination |
|
|
|
|
|
|
|
|
|
|
Strength of the nationals |
|
|
|
Excellent cashflow |
|
Critical mass for Trinity Mirror |
|
High margins |
|
|
|
|
|
|
|
|
Strength of the Scottish titles |
|
Daily circulation, 000 copies |
|
|
|
Notes