Subsidiary of Iconic Newspapers operates more than 20 local news titles including the Limerick Leader, the Dundalk Democrat and the Leinster Leader
Underlying revenues at newspaper publisher Formpress Publishing have fallen dramatically as a result of Covid-19.
That is according to new accounts for Formpress Publishing Ltd which show pre-tax profits slumped by 84pc from €1.13m to €178,996 in the 18 months to the end of September 2020.
Formpress Publishing is a subsidiary of Iconic Newspapers and the company operates more than 20 local news titles here including the Limerick Leader, the Dundalk Democrat and the Leinster Leader.
The accounts show revenues at Formpress Publishing Ltd for the 18 months to the end of September 2020 totalled €17.4m compared with €12.2m for the prior 12 month period. The pre-tax profits take account of ‘other operating income’ of €564,873.
According to the directors on the impact of Covid-19, underlying revenues during the period fell dramatically “and we expect this to continue for most of 2021 with the expectation that revenues will continue to fall”.
The directors state that during the period, “it is regretful but as a business we have had to downsize during the pandemic and utilise the Government support schemes whilst continuing to retain as many employees as possible, the number of which has been relatively stable over this period”.
Government support received during the period totalled €559,708. The directors add further that as a result of these actions against a backdrop of rapidly falling revenues “profits have been significantly reduced but have been maintained at sustainable levels to ensure that the ongoing business is profitable”.
The profit last year takes account of combined non-cash depreciation and amortisation costs of €1.44m. Numbers employed reduced from 149 to 135 and staff costs totalled €8.79m for the 18-month period. Staff costs include €1.598m to key management personnel. The company recorded a post-tax loss of €70,915 – paying corporation tax of €249,911. Accumulated profits totalled €4m.