EUROPEAN publishing company Mecom Group delighted investors yesterday by raising its full-year core profit forecast, as it announced that its chief executive would step down at the end of the month.
Shares in the company, which have fallen 46 per cent since the beginning of the year, traded up as much as 50 per cent, making the stock the biggest percentage gainer on the London Stock Exchange in early trade. The stock closed up 42 per cent at 57.5p.
The company, which owns more than 250 printed titles and 200 websites, said Stephen Davidson would step down as CEO by the end of October. The firm has no plans to appoint a new chief executive but will hand power to regional bosses.
Mecom now expects full-year earnings before interest, taxes, depreciation and amortisation (Ebitda) to be between €70m (£59.2m) and €80m, due to a stabilisation in the rate of advertising revenue decline in the Netherlands and cost benefits realised in the quarter.
The publisher had said in July that it expected core earnings at the upper end of its previous forecast of €50m to €60m, as it continued to cut costs.
City A.M. Reporter