News group positive

Shares in Reach rise as expectations lifted

Daily MirrorShares in the publisher of the Mirror, Record and Express newspapers group rose more than 5% in early trade after it said trading for the year will finish “marginally ahead of market expectations”.

Reach, the new name forTrinity Mirror after it acquired Richard Desmond’s media portfolio, reported a 23% rise in group revenue in the fourth quarter, while revenue on a like-for-like basis fell 5%.

Circulation revenue and print advertising revenue is forecast to fall by 4% and 15% respectively on a like-for-like basis.

However, the company said that digital revenue is expected to rise by 5%.

It said the integration of Express & Star, which it acquired in February for £127m, was progressing well and the firm expects to deliver £3m of synergy savings in 2018, ahead of the £2m forecasted in October.

The company said it was on track to deliver at least £20m of annual savings per annum by 2020.

Chief executive Simon Fox: “I am pleased with the improved trading in the final quarter. This coupled with continued tight management of the business provides me with confidence that performance for the year is expected to be marginally ahead of expectations.

“We head into 2019 having made good progress with the integration of Express & Star and with clear plans in place for driving digital growth in the year ahead.”

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