GMG, which owns the Guardian, Observer and Manchester Evening News newspapers as well as the Smooth radio network, saw turnover from continuing operations increase to £716.1m for the financial year ending April 1 2007, up from £700.3m the previous year.
It posted pre-tax profits of £97.7m, up from £66.4m the previous year. Operating profit excluding exceptional items was £105.2m, down from £116.4m in 2005-2006.
GMG chief executive Carolyn McCall said the group would pursue new acquisitions after selling its 49.9% stake in Trader Media Group to Apax Partners in March.
"We will actively pursue acquisition opportunities in the year ahead as we continue to reshape our business," she said.
"We want to reshape and diversify our portfolio so in terms of potential acquisitions we will define media quite broadly. We won't be looking solely at areas we're already involved in."
Guardian News & Media, which owns the Guardian, the Observer and the Guardian Unlimited website network, including MediaGuardian.co.uk, reduced its operating loss before exceptional items to £15.9m, down from £19.3m the previous year.
GNM enjoyed a 10% jump in circulation revenue in addition to increased print display revenue, despite a fall in recruitment revenue. Digital revenues for the GNM subsidiary from both display and recruitment advertisers grew by 49% year on year.
During 2006/07, GMG Regional Media saw a decline in operating profit to £19.4m from £21.6m, in "extremely challenging advertising market conditions".
This was as regional newspaper classified revenues fell by 11% year on year. However, display revenue "outperformed" the market to grow by 1.4%, while digital revenue rose by 18.3% year on year.
Trader Media Group, which publishes the Auto Trader magazine and website, saw higher turnover, up by 3% to £312.5m, but lower operating profit, down to £104.6m from £119.5m the previous year, due mainly to new acquisitions, start-ups and business restructuring, GMG said.
Finally, there was an increase in operating profit at GMG Radio to £3.5m, up from £2.7m, in what was a "landmark year" for acquisitions, including QFM, Century FM and Saga Radio.
GMG is wholly owned by the Scott Trust, which was created in 1936 to secure the financial and editorial independence of the Guardian in perpetuity.
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