Independent News & Media has signalled that it will meet market expectations for 2002 as tight cost control and improved trading in the second half of the year underpinned profits.
In a pre-close trading statement issued to the Irish Stock Exchange yesterday, the group, which has interests in Ireland, Australia, New Zealand, South Africa and Britain, suggested it was well-placed to deliver an improved performance in 2003.
Two of the group's brokers, Davy and Goodbody, have forecast pre-tax profits of between €114 million and €118.5 million for 2002. Yesterday the group announced the appointment of NCB Stockbrokers as joint company stockbroker with Davy, Goodbody and Merrill Lynch.
The group said its operating base is expected to deliver total revenues in line with 2001.
"This follows a gradual, consistent and accelerating improvement in advertising volumes and yields. . . particularly in the period since October."
Within the publishing divisions, circulation revenues were ahead due to cover price increases and volume gains in key markets, the statement said. The group also referred to much lower debt levels, which together with lower interest rates and strong working capital management, will result in a reduced interest charge next year.
The group would not comment yesterday on reports that it has resumed discussions with Scottish Media Group (SMG) on purchasing its publishing assets.
The group also announced the appointment of Mr Colm Nolan as chief financial officer of its Irish operations. He is currently finance director of the Sunday World.
