Local World’s adjusted profit before tax was £43.6m in 2014, up from £38.9m, according to the regional publisher’s annual report.
Daily Mail and General Trust and Trinity Mirror, which own 59 per cent of Local World shares, earned more than £25m between them from this profit.
In the year to December 2014, total turnover was £221m, down 4 per cent from £231m in 2013, the results show.
While digital revenues were up 22 per cent to £24.6m, print advertising made £131.5m, down from £143.3m, and circulation revenue was £58.3m, down from £60.3m.
Exceptional costs in the year – made up of severance payments, "onerous leases", legal costs and IT outsourcing – were £4.9m, up from £3.9m in 2013.
Operating profit before exceptional costs in the year to December 2014 was £22.5m, up from £18.5m. This puts the company's operating profit margin at 10.2 per cent, up from 8 per cent. The adjusted profit figure above, £43.6m, is based on Local World's EBITDA figure.
The report also revealed that Local World’s newspaper websites attracted 19.5m unique browsers in December. This, according to ABC figures, represents an increase from 14.3m in December 2013.
In 2014, the number of Local World employees decreased from 2,738 to 2,498, meaning staff costs were reduced from £85.3m to £80.2m. The number of jobs in the production area (mainly journalists) of the business fell from 1,117 to 1,015. In total, Local World’s wage bill fell from £76.5m to £71.5m.
Directors’ total remuneration in 2014 was £999,000 in total, down from £2.1m, according to the results. And the highest paid director, not named, was remunerated £639,000 in 2014. This figure was £1.3m in 2013.
DMGT owns a 38.73 per cent share in Local World, and Trinity Mirror 19.98 per cent. This means that DMGT claims £16.9m of the £43.6m profits, and Trinity Mirror £8.7m.
Local World is the UK's third biggest regional newspaper publisher by circulation and its titles include the Leicester Mercury and Hull Daily Mail.
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