More job losses at Herald and Times Group but DC Thomson reports profit rise

The move marks the fourth round of redundancies at the group in just over a year.

About 100 journalists are thought to remain at the Glasgow-based stable of publications, which include The Herald, Sunday Herald, Evening Times and The National.

Staff were informed of the planned cuts by management on Wednesday.

The group said the move was aimed at ensuring “the long-term sustainability of the business” in the face of “challenging” trading conditions.

The latest cuts follow 20 job losses announced by Newsquest in August which were described as a result of a period of “substantial weakness” in advertising revenue.

In contrast, Dundee-based media group DC Thomson has hailed a year of progress in its core publishing business after posting an increase in revenue and pre-tax profits.

The group – which publishes a portfolio of newspaper and magazine titles including The Courier, The Press and Journal and The Sunday Post – saw revenues increase from £239.6million to £244.8 million in the year to March 31, 2015.

The accounts published at Companies House also show pre-tax profits in the period rose from £24.8million to £30million.

In his strategic report to the accounts, chairman Andrew Thomson said efforts were being made to expand the reach of the business.

“Whilst we expect our traditional business to continue to prosper, we are committed to finding new products and markets,” Mr Thomson said.

“Our trading operations have been affected by challenges to revenues but the core publishing business continues to trade well in comparison to our peers.

“Whilst we have belief in the longer term future of the core business, the challenges in publishing mean that work is under way on brand extensions and other initiatives to support these businesses.”

Within the publishing arm, newspaper and magazine circulation volumes were down but newspaper revenues were 1.9 per cent ahead year-on-year due to cover price rises and cost efficiencies.

Advertising revenues from the newspaper business were 6.4% lower but the group said it expected income from its various websites and new business areas such as events to support conventional earnings going forward.

Meanwhile, commenting on the looming redundancies at the Herald and Times Newspaper Group where savings are expected from cuts in editorial management, sport, arts, features, multimedia and content management, managing director, Graham Morrison, said: “The Herald and Times Group, in line with industry-wide trends, continues to face challenging trading conditions.

“Digital advertising and subscription revenues are continuing to rise and we are exploring other avenues for income growth to offset the declines in other areas.

“But it is paramount the company continues to closely control costs, so today we are announcing measures to ensure the long-term sustainability of the business.

“Key areas such as contributor costs and expenses will be affected but we need to make greater savings than these areas can accommodate.

Mr Morrison added: “We very much regret that we have to take this action but we aim to maintain the most competitive editorial operation and the proposed restructure includes the creation of new roles to drive our digital ambitions which positions us strongly for the future.”