Cost of resolving disputes 'higher than expected'
Trinity Mirror hikes compensation for phone hacking victims to £12 million
Trinity Mirror is increasing the compensation set aside for victims of phone hacking from £4 million to £12m after the publisher of the Daily Mirror accepted that the cost of resolving disputes would be higher than first envisaged.
In a statement issued this morning it says there remains some uncertainty as to how matters will progress, whether or not new allegations will emerge and what financial impact these may have on the company.
“The company continues to co-operate with the Metropolitan Police Service in their ongoing investigations and it takes all allegations seriously,” it said.
It has today published an open apology to the victims of phone hacking in the Daily Mirror and plans to publish the same apology in the Sunday Mirror and Sunday People this weekend.
It expects adjusted profits and earnings per share for the 52 weeks ended 28 December to be marginally ahead of consensus forecasts with strong cash generation enabling a reduction of net debt to below £20 million after pre-paying £17 million of pension deficit funding payments due in future periods.
Net debt has fallen further since the year end following receipt of special dividends of £12m from its Local World chain of local newspapers.
The 2014 annual results will be announced on 2 March 2015.
Trinity Mirror also owns the Daily Record, Sunday Mail and Scottish Business Insider.