Profits have been relatively firm in the past 18 months in marked contrast to the poor performance of the sector through the recession

Profits have been relatively firm in the past 18 months in marked contrast to the poor performance of the sector through the recession.The national circulation price war and sharply higher newsprint prices have taken their toll, particuarly in larger centres such as Liverpool and Birmingham. But many regional publishers have managed to cut costs, redesign their papers to use less newsprint, and even post slight circulation gains, despite the overall downward trend. Many of these will at least look at the adverts in free papers, which have seen their circulation double to 33 million since 1981.All told, the industry had a combined annual turnover of pounds 2.4bn in 1994, fuelled by buoyant local advertising. Despite a 25 per cent decline in circulation figures for morning, evening and weekly regional papers since 1981, from 16.7 million to 12.3 million, the vast majority of adult Britons read a local newspaper. The Daily Mail last year spent a seemingly exorbitant pounds 93m to buy the Nottingham Evening Post and other titles from the family- owned T Bailey Forman.All these companies have in common a faith in the attachment readers feel to their local titles. So who is right, Thomson or Trinity? The answer may be: both are.Thomson has many other fish to fry, not least its huge UK travel business.

As one industry executive puts it: “Thomson is a big international company, and regional newspapers are a very small part of what they do. They must have taken the view that the use of management time was not justified.”Trinity, by contrast, specialises in regional newspapers. It had turnover in 1994 of pounds 164.5m, a figure set to double with the acquisition of the Thomson titles. Its chief executive, Philip Graf, says he intends to ensure that management of the newspapers remains in the local market.

“It is the links to the local community that are the biggest strength of regional newspapers,” he says. The holding company will be responsible for central operations – for instance, the purchase of newsprint and expansion into “new media”, such as links to cable operators. Mr Graf is not alone in believing there are good pickings still to be had in the UK market. Emap, the newspaper, magazine and radio holding company, has been buying new titles, most recently snapping up the Herald & Post newspapers in Bedfordshire, Buckinghamshire and Herefordshire, also from Thomson.Mr Oakley has also been a buyer, not only of newspapers, but of an exhibitions and conferences company. “We believe there are strong profits to be made within the next five years,” he says.There could be no firmer indication of confidence than Trinity International’s decision to spend a whopping pounds 327.5m last week for the non-Scottish titles of Thomson Regional Newspapers, a move that catapulted the aggressive, publicly quoted holding company into pole position in the UK regional market. The only answers are to “manage decline” – reaping the cash-flow benefits for as long as possible before accepting inevitable defeat – or to expand into radio, cable and multimedia.
So how to explain the optimism of so many newspaper executives? Jim Brown, chief executive of Reed Regional Newspapers, says: “This is a very good business indeed, and it has an excellent future.” At Midland Independent Newspapers, Chris Oakley, chief executive, is equally ebullient. DOOMSAYERS have all but written off the regional newspaper market in the UK.

Declining circulation, increased competition from local radio and the inexorable growth of on-line services and cable television are perceived by many media analysts as sounding the industry’s death knell. Seven detailed allegations of offences by him were highlighted, together with relevant evidence.But on 6 July Mr Pollard received a letter from the SFO saying the information provided by Mr Leeson, far from persuading Mr Staple to change his mind, had reinforced his view that the case was a matter for Singapore to deal with.. “Our problem was that we could not refuse anything the SFO requested,” he said.On 29 June Mr Pollard sent the SFO 75 pages of detailed information, including substantial material relating to Mr Leeson’s involvement in the affairs which led to the collapse of Barings. “I felt it indicated that they were not playing straight with us.” He said it was unusual for a prosecuting authority to ask for a written statement prior to an interview under caution, but he felt they had little choice but to co- operate.