Operational Changes at Northcliffe Newspapers

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Wednesday 29 June 2005

Northcliffe Newspapers, the regional newspaper division of Daily Mail and General Trust, has today announced a two year programme of organisational and structural improvements. These are designed to increase the operational efficiency of Northcliffe by taking advantage of the substantial investments already made and planned to be made in the business.

The programme aims to achieve cost savings of at least £20 million per annum. In the current financial year, Northcliffe expects to incur exceptional costs of approximately £6.5 million for the first phase of the programme (of which approximately £3.5 million is non-cash).

The announcement follows five years of investment in plant and IT equipment totalling £150 million and the planned investment of £100 million over the next three years. The biggest element of this new investment is expected to be a new press facility in North Lincolnshire, which is scheduled for completion by December 2007.

The programme includes the possible closure of older Northcliffe presses in Exeter, Hull, Grimsby and Lincoln as a result of these investments.

Commenting on the announcement Michael Pelosi, Managing Director of Northcliffe Newspapers said:

‘Over the last five years we have invested substantially in new presses and improved technology as part of our continued commitment to producing high quality regional newspapers with strong editorial content. We have consistently followed a strategy of publishing market leading local newspapers and websites which cater for the needs of our readers and advertisers. These organisational and structural changes announced today will help us to continue this successful strategy in the highly competitive and rapidly changing local newspaper market.’

Further information:

Michael Pelosi, Northcliffe Newspapers, Tel. 020 7400 1109

Andrew Honnor/Peter Hewer, Tulchan Communications, Tel. 020 7353 4200