Johnston Press shares plummet on debt fears

Shares in the troubled owner of The Scotsman and Yorkshire Post, Johnston Press, have dropped dramatically after the company announced a delay in publishing its preliminary results.

Johnston has moved the date from April 3rd to April 25th.

In the same announcement the firm says it has been in "constructive discussions" with its lenders over a three year extension to its credit facilities. Crucially, it does not say it has actually got the extension.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

As of November 5th last year net debt was a whopping £357m. The firm's market capitalisation is only £41.58m.

In line with the whole newspaper industry Johnston has suffered from a decline in advertising revenue.

The stock had fallen 12.1% by 11:04. Over the last five years Johnston Press shares have now lost 98.4% of their value.

BS