7 January 2013
Daily Mail and General Trust plc (`DMGT')
Completion of disposal of Northcliffe Media to Local World
DMGT announces that with effect from 30 December 2012, it has completed the
disposal of Northcliffe Media, its regional newspaper business, to Local World.
DMGT received cash proceeds of £52.5 million and shares representing a 38.7%
stake in Local World, as indicated in the 21 November, 2012 announcement.
The Iliffe family, owners of Yattendon Group, have sold Iliffe News & Media to
Local World in exchange for a 21.3% shareholding in the new business and
Trinity Mirror has acquired a 20% shareholding. The remaining Local World
shares were purchased by other investors including Artefact Group, an
Investment Fund associated with Lord Ashcroft, and Odey Asset Management.
Northcliffe Media earned operating profits of £26 million from revenues of
million in the 12 months to September, 2012. DMGT also incurred £10 million of
exceptional operating costs in respect of Northcliffe Media during the year.
Local World's pro forma combined operating profits are £29 million on revenues
of £249 million for the year to 30 September, 2012.
DMGT has agreed with the Trustees of the Pension Funds affected that £30
million of the cash proceeds from the disposal will be paid into the Pension
Funds. £15 million will be paid in the current financial year, of which
approximately £5 million will be paid in respect of the Section 75 Employer's
Debt which arises as a result of the employees of Northcliffe Media leaving the
Pension Funds. This follows a reorganisation of the Group in 2011 under which
responsibility for the majority of the liabilities was apportioned to DMG
Holdings Limited. The remaining £15 million will be paid in the 2013/14
The Local World transaction follows the disposal in November 2012 of Associated
Neswpapers' digital assets in central and eastern Europe for cash proceeds of
32 million (£27 million). During the year to 30 September, 2012 these
businesses accounted for £1.8 million of operating profit, £0.5m of share of
profits from associates and £6 million of revenues.
Investor/ analyst enquiries:
Adam Webster, Investor Relations, DMGT +44 20 3615 2903
Kim Fletcher / Will Carnwath, Brunswick Group LLP +44 20 7404 5959
DMGT is an international group quoted on the London Stock Exchange with a
portfolio of market-leading digital, information, media and events businesses.
Group revenues are split broadly equally across the B2B and Consumer
The B2B business comprises:
• Risk Management Solutions
• Euromoney Institutional Investor
The Consumer business, known as Associated Newspapers, comprises:
• The Daily Mail, The Mail On Sunday and MailOnline
• Evenbase (Jobsite & Jobrapido)
• Zoopla Property Group (52.3% stake)
DMGT seeks out innovative solutions to customers' demands for information and
supports a diverse group of high quality, entrepreneurial, media and
DMGT's ambition is to provide the highest quality content and services, across
the most attractive growth markets in innovative, responsible and sustainable
ways, building on its track record of earnings and dividend growth.
Daily Mail and General Trust plc
Northcliffe House, 2 Derry Street,
London, W8 5TT
Registered in England and Wales No. 184594
-0- Jan/07/2013 12:17 GMT
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