IN&M lowers profit forecast

Independent News & Media (INM) today lowered its profit forecast for 2009, describing the current business environment as "extremely challenging".

The company also expressed optimism that a resolution would be reached on the issue of refinancing its €200m bond, and revealed the intended sale of a number of assets.

A company outlook statement issued following its AGM in Dublin today revised its 2009 forecast for operating profit before exceptions from between €200m and €230m - as predicated on April 30 - to €180m-€210m.

However chairman Brian Hillery said INM "remains profitable" and is "well-placed to benefit from a return to economic growth".

The chairman also said that discussions with banks and with bondholders on a refinancing of the firm's €200m - which matured on May 18 - "have shown a willingness on the part of all parties to reach consensus".

Further talks on the issue are set to take place over the coming two weeks.

"Although the outcome is subject to material uncertainty, the Directors believe, based on discussions to date, that terms will be reached that will be acceptable to the Group and fair to all parties," Hillery said.

"To facilitate discussions, a standstill agreement is in place until June 26," the statement continued.

The company also revealed the sale of some 'non-core' assets, to be completed before the end of September.

The assets in question are African advertising business INM Outdoor, INM's stake in German price comparison site Verivox, and Cashcade, a UK-based gaming business.

"We anticipate total proceeds to our Group of up to €150m," Hillery said.

INM owns more than 200 newspaper and magazine titles across the world including the Irish Independent,

The chairman said the company was "operating in a tough industry at a time of almost unprecedented economic conditions".

"The timing of our bond maturity has accentuated the challenges. We look forward to completing our refinancing and focussing on our core business."