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Its full-year 2008 results show that its UK revenue fell by 16.8% year on year in 2008 and by 22.6% in the Republic of Ireland.

At £128.4m, 2008 pre-tax profit was 27.9% down with an operating margin of 24.1%.

In the UK, it was hit by a 32.4% slide in property advertising revenue over the course of 2008, which was, the company said, "a direct reflection of the collapse of the property market both for second-hand homes and new build".

However, it insisted that property advertising ad revenue should recover, adding that "we expect that as markets recover there will be a return, though almost certainly not to the record levels of advertising we enjoyed in the recent past".

Revenue in all other major ad categories fell year on year, down by 19.5% in recruitment, to £82m, and down by 21.2% in motoring, to £31.9m.

Its largest single ad category, with a 31.5% share of its total advertising, was display. Last year, Johnson Press said total display revenue was down by 9.3% with reductions in both national and local markets.

In the last quarter, the year-on-year performance worsened, with a 16% fall. It warned that "while we are confident that local newspapers will remain an important advertising medium for display, short-term prospects, especially in the early months of 2009, look challenging".

Overall, UK ad revenue, across both print and digital operations, totalled £346.6m in 2008, down 16.8% from the 2007 total of £416.4m.

Despite the fall in ad revenue this year, the company noted that its finances are benefiting from cost cutting, started in 2008, which have led to a 15.7% drop in overheads for the first two months of 2009.

However, it warned that in the short term "there is little prospect of a turn in the advertising cycle and our expectation is for 2009 to be a very challenging year, with revenue significantly below 2008 levels and only partially offset by lower cost".

Group-wide, total revenue in 2008 stood at £531.9m in 2008, down from £607.5m in 2007. Within this 2008 total, print ad revenue stood at £350.6m, newspaper sales totalled £101.4m and digital at £19.8m.

John Fry, Johnston Press chief executive, said the company must "plan for the turn of the cycle, which will undoubtedly happen".