Johnston Press shares hit by profits warning

Johnston Press owns about 250 newspapers and 198 websites

Shares in Johnston Press fell sharply after the newspaper and online publisher issued a profits warning.

The owner of the Yorkshire Post and The Scotsman said half-year and full-year profits would be hit after advertisers delayed and cut spending around May's general election.

Advertising revenues fell by about 5% and circulation sales were down by 5% in the 26 weeks to 4 July.

Shares in the Edinburgh-based group tumbled by about 15% after the warning.

The announcement came as the Herald and Times Group reported a small growth in print sales of its main titles in the year to June.

In a trading update, Johnston said it took action to limit the impact of revenue reduction during the trading period, but half-year profits were still expected to come in below a year earlier.

Profits over the full year would now be "slightly below" forecasts in the market.

'Challenging'

Chief executive Ashley Highfield said: "Trading conditions in the first half of 2015 have undoubtedly been challenging, especially in the period around the general election - a time when there was also a high degree of uncertainty in the wider market."

He added there were still encouraging signs from digital revenues, which the group has been focusing on to help offset ongoing pressure on print ad sales.

Digital revenues are expected to have jumped by about 17% in the group's first half, while readers visiting its sites are up by more than a fifth.

The group also said there were signs of a pick-up in trading so far in July.

But it cautioned that despite better trading since the election, full-year profits were still likely to be below expectations.

Johnston Press owns about 250 newspapers and 198 websites, recently adding weekly free title The Brighton and Hove Independent to its portfolio.

It has been battling to overcome the decline in the wider UK newspaper market in recent years, slashing costs and boosting its online offering.