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Shares in Reach, the publisher of the Daily Mirror, surged more than 25 per cent after announcing expectations to surpass annual profit forecasts, driven by robust performance in the final quarter of 2024 and significant cost-reduction measures implemented in recent years.
The media organisation, which owns prominent national publications including the Mirror and Express, alongside regional powerhouses such as the Manchester Evening News and Liverpool Echo, witnessed its share price climb 26% during Monday’s trading. The impressive rally contributed to a cumulative 41% increase over the preceding 12-month period.
The company’s strategic restructuring, which resulted in approximately 800 job cuts two years prior, marked the most substantial workforce reduction in the newspaper sector’s recent history. Current projections indicate Reach will exceed analysts’ forecasts of £97.4m in adjusted operating profit for 2024.
Chief Executive Jim Mullen’s implementation of a “single-team approach” across multiple titles, integrating seven-day print and digital operations, has proved instrumental in this financial turnaround. Despite facing criticism for additional staff reductions in late 2023, Reach reported an increased headcount by year-end, having recruited at least 60 new editorial positions.
Investment bank Panmure Liberum attributes this success to robust digital advertising revenues during the Christmas period and effective cost management strategies. The bank has revised its forecast for Reach’s profit before tax to £98.1m for 2024, with earnings before interest and tax projected at £101.8m, though a slight decline in annual profits is anticipated for the following year.
The company disclosed a £5m additional payment requirement for one of its pension schemes due to a “historical error,” though subsequent reviews of other pension schemes revealed no material concerns.
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