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It's almost a year since a grinning, cigar-chomping Richard Desmond

strode into Ludgate House to take charge of Express Newspapers and

declared: "Everything's OK at the Express."

That a 'porn baron' who made his wealth from publishing the likes of

Asian Babes, Big Ones and Readers' Wives could be entrusted with the

future of the venerable Crusader - the centenarian Daily Express - was

greeted with abject horror by the majority of the media world.

But amid the cacophany of doomsayers, there were a few optimistic voices

suggesting Desmond could hardly do more damage to the ailing group than

its two previous owners.

Pointing to his success in building lucrative celebrity magazine OK!

and citing his shrewd reputation, they warned that the man should not be

underestimated.

Much-needed investment in rejuvenating the titles was promised by the

new owner.

The papers would benefit from OK!'s access to celebrity exclusives, but

The Express' traditions and editorial integrity would be respected. A

year on, how much of that promise has been fulfilled and is the group

now stronger or weaker?

Few would argue that the new ownership got off to a rocky start, as a

stream of respected senior executives rushed for the exit doors.

Some were pushed, but more, having experienced the brusque management

style of Desmond and his deputy, Stan Myerson, chose to seek pastures

new.

As for the newspapers themselves, the Daily Star, which found a natural

empathiser in Desmond, has benefited most from the change in

ownership.

Average sales for the past six months are up nearly 15 per cent on the

previous year. The Star's September ABC of 632,438 is an increase of

78,045 copies year on year. Nevertheless, the target of a 750,000 sale

by the end of this year is now looking decidedly ambitious.

The outlook for the two Express papers is rather gloomier. A popular

criticism of the new management is that it appears to have no coherent

strategy for the Express titles.

Marketing initiatives have tended to be governed by knee-jerk reactions

to competitors' promotions and short-term, opportunistic alliances with

OK! All have failed to halt the papers' long-term slide.

Sales of the Daily Express have fallen below one million, with the

average for the past six months down 9.4 per cent on the previous

year.

To rub salt in the wounds, the lost 100,000 readers appear to have

defected to the Express' bitter rival, the Daily Mail, whose sales are

up by nearly the same amount.

The Sunday Express has fared little better - its average

April-to-September sale fell 7.4 per cent on the previous year. On a

more positive note, aided by an aggressive yield strategy, ad volumes

have held up well amid a difficult market.

On the back of its circulation gains, the Daily Star's display volumes

are up 64 per cent, and ACNielsen MMS figures for January to August show

that display pages in the Express titles are down just 2.2 per cent on

last year. By comparison, the Mail titles are down four per cent.

Front-line sales leadership

Heading the sales offensive, Myerson - who is renowned as a tenacious

negotiator - may not be everybody's cup of tea, but media buyers testify

to his "bloody hard work" and his leadership from the front.

By accident or design, he has lost most of the senior sales team he

inherited, but has brought in several heavyweight replacements.

He has even succeeded in luring people from the highly remunerated ranks

of the Mail - although cynics suggest the new recruits' bountiful

salaries contain a sizeable element of danger money.

Media Planning press buying director Priscilla Rogan says any comparison

to the business' pre-takeover position is complicated by this year's

dramatic downturn in trading conditions.

"It's easy to say the group is weaker now, but is that the fault of the

new management or the economic climate?" she asks.

"They started out bullish and tried to increase yields, but it didn't

work. You need strong brands, and it's easy to buy around the Express'

ageing profile and declining sales. But, in fairness, they've since

taken a more sensible approach to rates and the fact they've kept the

papers running in this climate is perhaps an accolade."

Mediacom head of press Steve Goodman believes not many sales teams are

as dedicated as the Express group's. "They are always open to different

ways of trading. It is refreshing to hear them ask what kind of added

value they can bring to make it work for our clients."

'Keep on investing'

According to Zed Media press buying director Philippa Dunn, the new

owners will have to invest more in their products to succeed. "They put

money behind the Daily Star and won more advertising on the back of its

circulation growth. But they need to do the same with the Express

titles," she says.

"Their sliding sales are a big problem for the ad sales team. If

something isn't done soon, they might not have a product to sell."

Carat press director Tim Kirkman adds: "I would love to see the Express

titles return to their former glory, but there's a long way to go. It's

hard to see what the new owners have brought to the party."

So what might an end of year report conclude? Perhaps: "Can be

troublesome. Started the year badly but has worked hard since and has

enjoyed some success. Must improve next term."

A YEAR IN THE LIFE OF THE CRUSADER

The story so far...

If nothing else, Richard Desmond's takeover of the Express group has

provided a beanfeast for media correspondents and diarists, the likes of

which hasn't been seen since the Robert Maxwell era.

The comings and goings and rumours emanating out of Ludgate House have

provided a steady stream of colourful copy over the past year. These are

some of the highlights:

NOVEMBER 2000

Lord Hollick's United News & Media sells Express Newspapers to Richard

Desmond's Northern & Shell, publisher of OK! and a string of soft porn

magazines, for £125m. Two other prospective bidders - Hollinger

and Associated - complain that they weren't allowed to make bids.

Desmond ups the papers' print run and invests in a £1m television

ad campaign. Star columnist Mary Kenny quits, saying that as a Catholic,

she couldn't work for someone who "coarsened culture".

DECEMBER

Sixty commercial staff are made redundant, including MD Andy Jonesco and

ad director Richard Bogie. Daily Express editor Rosie Boycott protests

to Desmond at the inclusion of pregnant women on the redundancy

list.

Columnist Peter Hitchen, political editor Anthony Bevins and home

affairs editor David Taylor quit. Four Express websites are sold, with

the loss of 50 jobs. News that Boycott and 24 other senior staff

received £40,000 handouts from Hollick is met with uproar.

JANUARY 2001

After a two-month stand-off, Boycott finally walks away with a £200,000 pay-off. She is replaced by associate editor Chris Williams.

Boycott's deputy, Chris Blackhurst, and columnist Topaz Amoore also

quit. OK! staff move into the Express building. It is reported that

Desmond is keen to offload his stable of adult magazines for about

£20m. The Manchester and Glasgow sales offices are closed and

regional sales are managed from London.

FEBRUARY

The Express and the Mail call a truce in their increasingly bitter war

of words. The Mail had written to Express readers suggesting the paper

was owned by a pornographer. The Express retaliated with a series of

brutal attacks on the Rothermere family, owners of the Mail. The

Express' star astrologer, Jonathan Cainer, lured from the Mail a year

ago, quits to join The Mirror. Commercial director Paul Woolfenden is

made redundant and head of display advertising Mark Milner quits.

MARCH

Desmond sends letters to the papers' 540 journalists, requesting 145

redundancies. The Telegraph group exercises its option to buy the

Express' 50% share of West Ferry Printers, which prints papers for both,

but they fail to agree a price. The Express papers' marketing budgets

are trebled to £25m and its buying account is split between three

agencies: OMD, CIA and Mediacom - although CIA later loses its place on

the roster. Express sports chief Mike Allen quits.

APRIL

The exodus of senior journalists continues with the resignations of

assistant editor Robert Jobson, associate editor Sue Matthias, columnist

Peter Oborne and head of news Sean Rayment. Following earlier promotions

involving OK! magazine, the Daily Express is given away free with any

magazine bought in WH Smith, adding to the paper's mounting ABC bulk

sales.

MAY

Sunday Express editor Richard Pilgrim exits after complaining about

Desmond's editorial interference in a memo leaked to The Observer. He is

replaced by OK! editor Martin Townsend. Also departing are the papers'

two ad controllers, Mark Hopkins and Chris Marston.

JUNE

After more than 100 years of supporting the Tories, the Daily Express

comes out in support of Labour. Reports suggest the Express is planning

to move out of Ludgate House following rows between Desmond and Hollick

over rent charges.

JULY

Desmond hires former Capital Radio executive Richard Park to explore

radio opportunities He is also linked with Mohammed al-Fayed and a bid

for the Sunday People. The group sues Jeffrey Archer for the £2m

costs awarded to the jailed peer in his 1987 libel action against the

Star.

Paparazzo Jason Fraser leaves his role as executive director four months

after joining on a £1m salary. The Express' third head of

classified this year, Fleur Edwards, exits after just seven weeks.

AUGUST

Desmond projects group ad revenues to increase by £10m to £125m in 2001, with profits between £35m and £44m, after

axing 430 staff and cutting the payroll by £20m. A raid by a mob

on the papers' offices damages computers and disrupts production.

Express journalists complain to the NUJ about proprietorial interference

and the paper's 'xenophobic' coverage of the refugee crisis. Foreign

editor Jacqui Goddard quits after complaining about the 'dumbing-down'

of the paper.

SEPTEMBER

Hollick sues Desmond for £4m, which he claims he is owed from the

sale of the Express group. Desmond talks to the Barclay brothers about

taking a stake in Sunday Business. Daily Express sports editor Chris

Baldock and veteran diarist John McEntee quit. The Mirror's star

football writer, Harry Harris, is lured to the Daily Express with a

£250,000 contract. Harris joins Brian Woolnough, who has been

poached from The Sun, where he was the chief sports writer.

OCTOBER

Sunday Express reporter Yvonne Ridley is released by the Taliban, having

been captured disguised as an Afghan woman and without identification

documents. Critics denounce the mission as "sheer folly". Former Labour

Party general secretary Margaret McDonagh is appointed general manager

of Express Newspapers.