← back to all news Johnston Press: AGM trading update
Ahead of its AGM today, Johnston Press has released a trading update for the first five months of the revealing that group revenues are down nine per cent..
Trading and Outlook
Trading so far this year has seen Group revenues down 9%, but a continuing strong performance from the i newspaper. Expectations for the full calendar year 2018 remain in line with market expectations. The trading environment remains extremely challenging, exacerbated in recent months by uncertainty around future paper costs and the impact of GDPR on digital advertising revenues.
The group is continuing to see pressure on revenues as it enters the second half of the year, and there is a requirement for cost savings. Cash at bank at the end of May was £24.6 million.
Strategic Review Update
On 29 March 2017, the Group announced it had commenced a Strategic Review to assess the financing options available to the Group in relation to its £220 million 8.625% senior secured notes, which become due for repayment on 1 June 2019 (the "Bonds").
The Board subsequently announced on 2 November 2017 that an ad hoc committee of bondholders had been formed to consider certain potential amendments to the Group's capital structure, combined with certain proposed amendments to the Group's pension scheme. No agreement on these potential amendments has been reached. However, the Group is continuing to work with the ad hoc committee and its other stakeholders on a number of alternative strategic options for the restructuring or refinancing of the Bonds prior to June 2019.
As stated in the Group's 2017 Annual Report, any proposal that results from these discussions will remain subject to negotiation and consent of relevant stakeholders, and there can be no certainty that a formal proposal will be forthcoming.