Associated Newspapers cuts losses to €65m

THE company which owns the Irish editions of the Daily Mail and the Mail on Sunday managed to reduce their accumulated losses to just over €65 million last year after making a profit.

Pre-tax profits for Associated Newspapers (Ireland) Limited were up from €868,139 to €1.5m for the 53 weeks ended October 4, 2009.

Their parent firm gave them a gift of €51.6m in the year, which appears in the accounts as a “non-refundable capital contribution”. The ultimate parent company is Rothermere Continuation Limited.

Directors pay increased significantly last year, at €420,010 from €152,589 in 2008.

The accounts said that the company has “unrelieved trading losses” of €58m.

“No deferred tax asset has been recognised because the company is not certain that these losses can be utilised.” the accounts read.

The accounts said that the principal activity of the company is the provision of editorial, sales and administrative support services for the Irish editions of the Mail on Sunday and Daily Mail.

Turnover increased by 2.3% to €19.3m from €18.9m in 2008 and operating profit increased by 40% to €1.5m.

The directors do not recommend the payment of a dividend for the year.

“The company is conscious of the need for continued financial support from its parent undertaking in order to continue as a going concern. The company’s principal source of income is its service contracts with Associated Newspapers Limited,” the accounts read.

The shareholder deficit was down from €2.9m to €1.5m. The company employed 135 on October 4, 2009, up from 102 a year earlier. In 2009 staff costs were €10.8m, up from €7.7m in 2008.