The group said that during the first half of the year, local revenue continued to grow. However, in many areas, the foot-and-mouth crisis took its toll on advertising sales and the group does not expect to have a clear picture of its advertising market until the end of the third quarter.
Pre-tax profit for the first half rose 13.7% to £23.2m and turnover increased 6.6% to £87.4m.
However, Chris Oakley, chief executive of the company, said the group was still looking at a flotation for 2002. Earlier this year, RIM rejected a long-running bid by a consortium led by US newspaper giant Gannett -- which owns Newsquest in the UK -- the Johnston Press and the Guardian Media Group.
The consortium was bidding £550m to buy the group, which would then have been broken up. RIM's backer, venture capital outfit Candover Investments, sees a flotation as the best way to realise its investment.
The group, which also owns local radio stations and magazines, said it had cut costs by £1.5m during the period to offset the difficult economic climate and the increased cost of newsprint.
Looking forward, it said it would continue to invest in internet projects and newspaper sales, but would also have to cut costs further.
Advertising revenue growth slowed from 12.5% in the first quarter to 3.1% in the second.
In June, RIM acquired three paid-for weeklies in Scotland -- the Galloway Gazette & Stranraer News, the Stornoway & West Coast Advertiser and the Carrick Gazette.