��������pk10

Profits were up to £66.7m from £44.3m last time as the group continued to live up to its reputation as one of the media sector's best performers. Its shares were up 1.6%, or 7p, this morning to 439.5p.

Turnover at the Edinburgh-based local and regional newspaper group, which was founded by a Falkirk printer in the 18th century, was up 28% to £248.5m from £193.6m.

The company said that like-for-like advertising revenue grew 3%, but despite the modest rise it said it remained confident that the outcome for the year will reflect good progress.

Johnston Press, which owns regional titles such as the Blackpool Gazette and the Yorkshire Post, said that integration of Regional Independent Media, which it bought last April, was also ahead of expectations.

Tim Bowdler, Johnson Press chief executive, said: "We have made a satisfactory start to the second half. Costs remain under close control and we continue to enjoy the benefits of the integration of the RIM businesses."

He added: "Although we see no early prospect of a significant improvement in overall market conditions, we anticipate continued modest advertising revenue growth and remain confident.”

For the period under review, advertising revenue for the enlarged group increased on a like-for-like basis by 3%. The company said yields were ahead in every category, in part reflecting the continued benefits of its recent investment in increased colour printing capability.

Across the country, it said that market conditions continued to vary, particularly in the case of job advertising, with conditions in the north generally remaining better than those further south.

Advertising volumes on a like-for-like basis were up by 1.6%, primarily due to growth of 11.9% in property advertising, the lowest yielding category.

Despite this change in the advertising mix, average yield across all categories increased by 1.4%. It said that the growth in property volumes reflected a general slowdown in the rate of house price increases, which in turn fuelled the need for vendors to advertise more frequently.

Johnson said all classified categories grew revenue on a like-for-like basis over the six months although, apart from property advertising, the increases were modest. Display advertising declined by 1.7%, with business at the local level being flat and national agency business falling back, a reflection of macro-economic uncertainty exacerbated by the Iraqi conflict.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .