NEWSPAPER publisher Newsquest plc, owner of the Lancashire Evening Telegraph and Citizen titles in Lancashire, today announced record operating profits.

The group, England's largest regional and local newspaper publisher, made profits of £81.4 million for the year ending January 3, an increase of 29.1 per cent. Pre exceptional profit before tax grew by 15.9 per cent to £65.8 million and advertising revenue increased by 6.7 per cent.

A final dividend of 4p, making 6p for the year, was declared. Net debt was reduced by £42.4 million to £135.1 million.

Jim Brown, Executive Chairman, said: "The slowdown in the economy at the end of 1998 was reflected in our trading, but the start of the year has gone well and the company is cautiously optimistic that we should see another good year. "Recruitment advertising, an important economic guide, has held up promisingly in the early part of 1999. The general strength of local economies remains important to regional newspaper businesses."

Most of Newsquest's paid-for titles saw year on year sales increases during 1998 and the firm said exciting and significant breakthroughs have been made on the internet. Newsquest has launched a series of new titles, including free newspapers in Harrow, Gravesend, Walton, Weybridge, Cobham and Staines. The company also made successful starts of new paid-for weekly papers in Sutton and Southend in 1999.

Newsquest's portfolio includes titles such as the Northern Echo and the Brighton Evening Argus and free weekly titles including Berrows Worcester Journal and the South London Guardian series.

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