IT LOOKS like Irish corporate financiers hoping that Johnston Press’s woes might see its 11 titles in the Republic being placed on the market again – thereby earning them a juicy fee – will be disappointed, for the time being at least.
Johnston’s soon-to-retire chief executive Tim Bowdler has ruled out flogging the Irish regional newspapers in a fire sale to generate cash for the heavily indebted media group, which has seen its share price collapse by more than 80 per cent in the past 12 months.
Johnston Press paid fancy prices to buy into the Irish market. Three years ago it handed over €138 million to buy the Leinster Leader group of titles. It was the biggest multiple paid for Irish regional newspapers at the time.
Cash flows from the business have failed to live up to expectations. Advertising revenues fell by 16.7 per cent in the first six months of this year.
The Scottish media group took a £109 million (€135.8 million) impairment charge in its interim results this week, relating mostly to a writedown in the value of its Irish titles.
Johnston Press said £82 million related to a goodwill writedown, while it shaved £27 million off the value of its Irish titles.
Who said Scots and their money aren’t easily parted?
