Articles in the Wall Street Journal, The Sunday Times and The Observer, believed to be based on an interview with Desmond, reported that his company was set to report operating profits of £60m.
However, documents filed at Companies House last week show the company made operating profit of £8.8m in 2002, down from £24m last time.
Sources at Northern & Shell are reported to have defended the £60m figure. They said that £21m paid to Desmond should be added to profits and that £15m of price discounts on newspapers should be included in the bottom-line figures.
They also said that Desmond's holding company RCD1 had forgiven £8.7m of debt, and that the total of "recurring profits" is in fact £61.9m.
A spokeman for Desmond told the MoS: "The shareholder of Northern & Shell is delighted with the 2002 figures and is thoroughly enjoying his £21m as a result."
The report in the Mail on Sunday will likely be seen as a deliberate attempt to slur Desmond's name, as he and Associated Newspapers, publisher of the Daily Mail, MoS and Evening Standard, are locked in a court battle over the "Mail" name.
Desmond is launching a London evening freesheet, which it has been reported will be called the Evening Mail or London Evening Mail. Associated is seeking an injunction preventing Desmond from using the Mail name. It alleges that Desmond is trying to pass off his product as related title to their long-standing mid-market tabloids, the Daily Mail and Mail on Sunday.
Desmond is the only shareholder in Northern & Shell. The company publishes the Daily Express, The Sunday Express, the Daily Star and Daily Star Sunday. It also owns celebrity magazines OK! and New!, and a number of porn titles, such as Asian Babes.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .
_1.jpg)
.jpg)
