TRINITY MIRROR saw its share price tumble more than 20 per cent yesterday after it admitted that it will not hit savings targets for the year.
The publisher pointed to inflation and the rising cost of newsprint, which will outstrip its cost-cutting measures.
Despite tripling its pre-tax profit for 2010 from £42m to £123m, it said its recovery will be “slow and volatile”.
Figures for the start of 2011 make grim reading, with national advertising falling nine per cent year-on-year and regional ads dropping 11 per cent.
Operating profit at its national titles rose three per cent after margins improved, although revenue fell 6.5 per cent, reflecting declining circulations.
Chief executive Sly Bailey said: “Although 2010 proved to be as challenging as expected, we made good progress in rolling out our new operating model, integrating GMG Regional Media and increasing profitability and margin whilst managing extremely volatile revenue trends throughout the year”.
The stock closed down 21.7 per cent yesterday at 66p.