Johnston Press profits plunge more than half but new debt deal struck

JOHNSTON Press profits have fallen from a £62.5m to £27.5m in the first half of the year – a 56.1% drop.

But they have negotiated some breathing space over its mountain of debt thanks to a new deal with lenders.

The company also claim advertising revenue have started to even out amid continued speculation that it could be forced to sell some of its titles.

The share price immediately surged up around 12% on the news, amid some up and down early trading.

The publisher has agreed a new three year banking facility worth £485m with its lenders to help handle its current £424m debt level.

Net losses to the six month ended June 30 rose to £67.5m from £64.8m after sales dropped 25 per cent to £218.6m.

Chief executive John Fry said: "These arrangements allow the Group to actively manage through the current cycle."

UPDATE: allmediascotland has now published more details here.

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