Montgomery newspaper group posts growth

LONDON - Former Mirror Group chief executive David Montgomery's European newspaper group Mecom increased revenues from £213m in 2006 to £983m last year, after a string of acquisitions.

The company said the growth reflected "the significant increase in the size of the group" last year. After several failed bids for British newspapers titles, Mecom is assembling a growing European newspaper group, having recently acquired the Berliner Zeitung and Dutch newspaper group LMG.

Commenting on financial performance so far this year, the company said revenues were broadly in line with the first two months of 2007, while pre-tax profit was ahead of the prior period.

Executive Chairman David Montgomery said last year had been a year of "major change" for Mecom.

He added that the company had taken significant steps in building a unified pan-European newspaper platform through the acquisition of Berliner Verlag, 86% of Wegener.  He referred to the installation of a "first-class management team" to drive Mecom's transformation from a purely print-based business, to a more broadly based content and consumer business.

Reflecting its growth, Mecom added that it will move to the main London Stock Exchange around 14 April. It is currently listed on AIM, the stock market for small-to-medium-sized companies.

Last month, Mecom restructured its senior management with John Allwood, the ex-Telegraph and Mirror Group senior executive, moving from chief operating officer to become chief financial officer.

Keith Allen, the group finance director who joined Mecom in June 2006, took over Allwood's role.

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