Owner of The Scotsman news titles, National World, has completed its fourth year of operations with another record profit. 

The company, currently in takeover talks, claims its performance over the period has been impressive, “given the structural change in the news media sector”.

Adjusted profit before tax for the year to the end of December increased by 13% year-on-year to £11.1 million. Overall revenue grew 9% to £96m and digital rose 7% to £19.6m. The events business revenue has grown by 37%.

Management anticipates further revenue growth from its Digital Markets Unit that will oversee payment for content from the major platforms such as Google and Meta.

The number of paying digital subscribers in the National World portfolio increased by 17% in 2024, with a 13% improvement in digital subscriptions revenues compared to 2023.

Print advertising revenue increased by 12% reflecting the full year benefit of acquisitions made in late 2023, and the national advertising contract changes in late 2024. Circulation revenues were strong, reporting 7% growth year-on-year.

Incremental cost savings of £0.8m were delivered in the period with restructuring costs of £1.8m. The restructuring and other cost saving actions are expected to generate £2.9m of annualised cost savings.

One thousand pages a week are made up using AI production and this will expand to more than 20% of all editorial output.

Talks over the all-cash acquisition of the group by Neo Media Publishing, an arm of Irish company Media Concierge, has been delayed following intervention by the Republic of Ireland Competition and Consumer Protection Commission.

The deal was announced on 18 December but the planned Court sanction hearing for the Scheme of Arrangement is now expected to become effective by 30 April, subject to Court availability.

National World’s financial advisers have been asked “to consider the dysfunction of the small cap market, with the unprecedented outflow of institutional funds, that impacts and limits the valuation of the business and its potential.”