Johnston Press PLC Disposal (7847D)

TIDMJPR

RNS Number : 7847D

Johnston Press PLC

01 April 2014

1 April 2014

Johnston Press plc

Sale of the trade and assets of Johnston Press' operations in the Republic of Ireland

Johnston Press plc ("Johnston Press" or "the Group"), one of the largest local and regional multimedia organisations in the UK, announces that it has today entered into an agreement for the sale of Formpress Publishing Limited ("Formpress"), which holds the trade and assets of its Republic of Ireland operations, to Iconic Newspapers Ltd for GBP7.2 million in cash ("the Disposal").

Following the Disposal, the Group will have no ongoing trading operations in the Republic of Ireland, other than the retention of certain leasehold and freehold property interests. The Group will continue to provide printing facilities to Iconic Newspapers Ltd for a certain period post Disposal. It is also intended that certain leasehold properties will be sub-leased to Formpress post Disposal. The Group is retaining its Northern Irish titles including The Newsletter and Derry Journal (which are also sold in the Republic)

Iconic Newspapers Limited is a company in the same corporate group as Mediaforce Limited, which is the Group's national advertisement sales representative in the United Kingdom, and is ultimately owned by Malcolm Denmark.

For the 52 weeks ended 28 December 2013, the operating profit before exceptional items for the assets subject to the Disposal amounted to EUR1.3 million.

Chief Executive Officer of Johnston Press, Ashley Highfield, said: "The disposal of our trade and assets in the Republic of Ireland will increase our ability to focus on the growth of our business in the United Kingdom and in particular our digital initiatives, in line with our stated strategy. We believe that it is in the Group's best interests to dedicate our resources to these opportunities.

I would like to thank the staff of our Irish business for their loyalty and dedication over the years and we wish them well for a successful future."

For further information please contact:

Johnston Press plc

Ashley Highfield, Chief Executive Officer

Jane Muirhead, Group Head of PR

020 7612 2616

Buchanan

Richard Oldworth/ Sophie McNulty/ Clare Akhurst

020 7466 5000

This information is provided by RNS

The company news service from the London Stock Exchange

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