`Worst over' for Wilson & Horton

By Karyn Scherer

Media group Wilson & Horton believes the worst is over for its printing and publishing businesses after one of its most difficult years of trading.

The company, which is now wholly owned by Irish-based media group Independent Newspapers, was delisted last May and is no longer obliged to report its results.

But it gave some details yesterday about the performance of its main assets, including the New Zealand Herald and commercial printing division, for the year ending December.

According to chairman Cameron O'Reilly, revenue across the group was flat for the year at $438 million, while operating profits before interest, tax and restructuring costs were down 7.6 per cent to $85 million.

The result contrasts with the announcement this week of a 16 per cent jump in pre-abnormal, after-tax profits for the parent company's Australian operations, APN News and Media.

Its other New Zealand asset, The Radio Network, also said last month that it had been turned around, with earnings before interest and tax up more than 70 per cent.

However, the Wilson & Horton result is in line with its New Zealand rival, Independent Newspapers, which recorded a 6.6 per cent drop in earnings before interest and tax for six months to the end of December.

Wilson & Horton announced a restructuring following the appointment of John Sanders as chief executive last October.

Mr O'Reilly, who is also chief executive of APN, said yesterday that he was confident the painful restructuring was already paying off, and would ensure good growth in 1999, particularly in the second half of the year.

About $8 million had been sliced from the company's costs as a result of the move, in which more than 200 staff were made redundant.

Circulation of the Herald appeared to have stabilised, and employment advertising was rising.

Although the commercial printing division had been hit by the tough economy and higher paper costs, it had increased market share.

Reduced costs had also enabled its magazine division, which publishes the Listener and NZ Woman's Weekly, to deliver double-digit profit growth, despite flat revenues.

Mr O'Reilly said there were no plans to raise cover prices this year, and it was unlikely any more assets would be sold.

"Our focus now is on market share, on growing circulation and taking advantage of the economy as it picks up."

Independent Newspapers Plc is due to announce its result in about three weeks.

Exchangable preference shares in the Irish company's New Zealand holding company, Wilson & Horton Holdings (formerly International Press Communications), remain listed here.

Pictured: Cameron O'Reilly