Savings pool helps Reuters profits advance

News and information group Reuters posted a sharp improvement in annual profits today after it cut costs and staged a business overhaul.

The company’s year-on-year decline in revenues also slowed as operating profits leapt 52% to £198m (€287m) in the 12 months to December 31. The sale of assets pushed bottom-line profits up by £382m (€555m) to £438m (€636m).

The figures were announced as Reuters moved into the final stage of a three-year programme designed to improve efficiency and its range of products.

Chief executive Tom Glocer said the “Fast Forward” initiative had achieved better-than-expected savings of £234m (€340m) in 2004, including from cuts resulting in more than 3,000 job losses.

Stripping out exchange rate movements, Reuters said core revenues fell 5.4% to £2.16bn (€3.14bn) last year, with the decline expected to be 1.5% in the first quarter of this year following good January sales.

Mr Glocer said: “Reuters goes into the last year of Fast Forward transformation with a strong delivery record, and our top priority is to finish what we have started. 2005 will be an exciting year for Reuters, as we begin to look beyond recovery to growth.”

Despite posting figures ahead of expectations, Reuters shares fell 3% today as the company said its charge for the restructuring this year would be higher than forecast at £80m (€116m).