Part of Life
Johnston Press plc 
Annual Report and Accounts 2003 Life is local
Our aim is to serve our local communities 
related print publications and websites that
platform for advertisers to reach their target
Johnston Press is the only quoted UK
newspaper publishing group that solely
focuses on local and regional markets. Johnston Press  Annual Report and Accounts 2003
Part of Life
by publishing quality newspapers,
attract readers and provide an effective 
audience.
02 Operational Highlights
03 Financial Highlights
04 Chairman’s Statement
08 Chief Executive’s Review 
25 Financial Review
29 Management Committee
30 Board of Directors
32 Corporate Governance 
36 Corporate Social Responsibility 
39 Directors’ Remuneration Report 
44 Directors’ Report 
47 Independent Auditors’ Report 
48 Group Profit and Loss Account 
49 Group Statement of 
Total Recognised Gains and Losses 
49 Group Reconciliation 
of Movements in Shareholders’ Funds 
49 Group Note of Historical 
Cost Profits and Losses 
50 Group Balance Sheet
51 Group Cash Flow Statement 
52 Company Balance Sheet 
53 Notes to the Accounts 
79 Group Profit and Loss Account 
Half Year Summary 
80 Five Year Summary
81 Notice of Meeting
Form of Proxy
Contents
March 2004 Results
April 2004 Annual General Meeting
May 2004 Payment of Final Dividend
August 2004 Interim Results
November 2004 Payment of Interim Dividend
Financial Calendar
01 Johnston Press  Annual Report and Accounts 2003
Part of Life
02
• Better than expected advertising revenue 
• Weekly circulations increased for seventh successive year 
• Better than forecast RIM synergies
• Increased colour capacity - and yields
• Excellent cost control and lower newsprint prices
• Upgraded electronic publishing classified platforms
• Significantly improved printing division performance 
Operational Highlights
Our highlights
241
newspaper titles
162
internet sites
11
printing centres Johnston Press  Annual Report and Accounts 2003
Part of Life
03
• Turnover...................................................................................................................................................up 15%
• Operating Profit.......................................................................................................................................up 24% 
• Operating Profit pre Exceptionals (underlying growth)*........................................................................up 9%
• Like-for-like Advertising Revenues*.........................................................................................................up 4%
• Pre Tax Profit...........................................................................................................................................up 38%
• Earnings Per Share.................................................................................................................................up 28%
• Headline Earnings Per Share.................................................................................................................up 21%
• Dividend Per Share.................................................................................................................................up 11%
• Free Cash Flow ......................................................................................................................................up 10%
• Interest Cover......................................................................................................................................up to 5.0x
Financial Highlights
65.9
83.9
89.5
129.5
160.6
Turnover £m
99 00 01 02 03
242.6
292.2
300.6
428.4
491.8
Operating Profit £m
99 00 01 02 03
Headline Earnings
Per Share (p)
99 00 01 02 03
Dividends (p)
99 00 01 02 03
17.29
20.97
23.65
26.75
32.36
4.0
4.5
4.9
5.4
6.0
* see Financial Review for definitions Johnston Press  Annual Report and Accounts 2003
Part of Life
04
The success of Johnston Press is
built upon an unwavering commitment
to serve local communities by the
provision of news, information and
entertainment. Through our
publications and websites, we aim to
provide compelling content to every
section of the community: be they
young or old, at home or at work and
whatever their range of interests. We
aim to be the premium provider of
print and on-line information in all of
our chosen local markets. 
Investment in 2003 has gone into
enhancing our presses, systems,
processes and publishing portfolio.
This has been achieved by providing
more colour printing, by using new
technology to speed up the process
by which our publications get to our
readers, and by improving the
functionality and content of our
websites. We have been rewarded by
an increase in the circulation of our
core weekly titles of 1.3%, which is
the seventh consecutive year we have
seen circulations rise and by a very
substantial increase in website use.
In addition, we have seen further
growth in spending by our advertising
customers in our main classified
advertising categories, both in print
and on-line. 
Chairman’s
By Roger Parry 
Chairman
2003 was another superb year for the Group. Cash generation, revenue and profit 
have all risen to record levels. Assisted by an excellent first full-year contribution 
from Regional Independent Media Holdings Ltd (RIM), as a result of its highly
successful integration into the Group, headline earnings per share rose strongly by
21%. The focus of the management team has been on strengthening our existing
operations by improving services to readers and advertisers as well as capturing 
cost savings. It has been a year of real progress. 
STATEMENT  Johnston Press  Annual Report and Accounts 2003
Part of Life
06
Results
In 2003, we achieved a turnover of
£492 million, up 15%, profit before
tax of £128 million, up 38%, and free
cash flow of £95 million, up 10%.
Headline earnings per share rose
from 26.75p to 32.36p. 
Dividend
The Board proposes a final dividend
of 4p per share, making a total of 6p
per share compared to 5.4p per
share last year. This is an increase 
of 11%.
In the 2003 calendar year, the Group’s
share price rose by 26%. Whilst this
is very pleasing to all of us as
shareholders, your Board recognises
that this is no more than an expression
of market opinion and that we must
continue to focus on the real
fundamentals of satisfying the needs
of our readers and advertisers.
Strategy
As we do every year, the Board has
conducted a thorough strategic
review of our existing business and
explored all the various opportunities
open to us for future investment.
Recognising the considerable
success of our strategy to date, 
we re-affirmed that we are best
positioned to achieve growth from
continuing to serve selected local
communities with their diverse
information needs. 
We continue to very actively seek
acquisition opportunities that would
mesh with our existing portfolio of
businesses and to pursue organic
growth through a range of new in-
print and on-line initiatives.
Media Ownership
All the evidence suggests that the
consolidation of ownership in the 
regional press in the UK has
produced substantial benefits for
both readers and advertisers. It is
important, therefore, that the 
Government and competition
authorities do not stand in the way of
future consolidation where there are
demonstrable benefits.
Plurality of editorial voice does not
automatically flow from plurality of
ownership. There are many examples
where a strong and well resourced 
local newspaper company provides
excellent and varied editorial
products and there is no evidence to
suggest that the quality of local news
and information is diminished in
markets where there is only one
publisher of local newspapers. It is
certainly our policy to encourage
wide editorial diversity. 
Board
During the past year we have been
delighted to welcome two new Non-
Executive Directors to the Johnston
Press Board.
Simon Waugh is the Group Marketing
Director of Centrica and Martina King
is the Managing Director of Yahoo
Europe. Both bring considerable
experience of consumer marketing.
As I reported to shareholders last year,
Sir Harry Roche will be stepping down
at the AGM in April 2004 on the
event of his seventieth birthday and I
would like to record the thanks of the
Board for his invaluable contribution
as a director of Johnston Press.
Chairman’s
STATEMENT
Recognising the considerable success of our
strategy to date, we re-affirmed that we are
best positioned to achieve growth from
continuing to serve selected local communities
with their diverse information needs. Johnston Press  Annual Report and Accounts 2003
Part of Life
07
We see continued growth in free cash flow
and earnings per share coming from further
increases in circulation and advertising
revenues coupled with continuing tight
control of costs. The Board is optimistic that
we will be able to achieve this growth in 2004
and beyond. 
After Sir Harry’s retirement, the
Board will consist of nine directors.
Of these, four are regarded as
independent non-executives. Freddy
and Harry Johnston are not seen as
independent, as a result of their
length of service on the Board and
significant shareholdings, although
the other directors are unanimous in
believing that they always act in the
interests of all shareholders. The rest
of the Board is made up of myself,
the Chief Executive and the Finance
Director. This Board composition and
that of the Board committees mean
that we are in full compliance with
best practice in corporate
governance. 
Prospects
The achievement of continuing
organic revenue growth remains
central to the Group’s objectives. 
Of the many financial and
commercial measures of a company,
we regard the most important as
being free cash flow and earnings
per share. We see continued growth
in these coming from further
increases in circulation and
advertising revenues coupled with
continuing tight control of costs. The
Board is optimistic that we will be
able to achieve this growth in 2004
and beyond.
ROGER PARRY
Chairman
17 March 2004 Johnston Press  Annual Report and Accounts 2003
Part of Life
08
Strategic Review
The theme of this report once again
illustrates the local nature of our
business and the markets in which we
operate. Recent market research
carried out by the Future Foundation
on behalf of the Newspaper Society,
the industry’s trade association,
demonstrates the growing importance
of local communities within the social
fabric of the United Kingdom. Their
“myuk” report illustrates the
considerable extent to which people’s
lives and daily affairs are
concentrated in an area close to their
homes, whether for work, shopping,
leisure or social activities.
It is this feature of the way that
people live their lives which provides
local newspapers with their basic
purpose. Local newspapers continue
to be the principal media in meeting
the needs of local communities for
locally focused news and information. 
They also provide advertisers with
high levels of local market penetration
and response. Local newspapers
remain a vital and integral part of local
communities throughout the UK.
As a publisher of 241 local and regional
newspaper titles, together with
numerous related print publications 
and more than 160 community based
websites, Johnston Press is totally
focused on this vitally important
market. Through a combination of
organic and acquisitive growth, the
Group is now one of the four leading
publishers of regional newspapers in
the UK with a total market share of
14.4% in terms of numbers of copies
sold and distributed.
The Group’s publishing activities
span a large area of the UK and, in
the overwhelming majority of our
marketplaces, Johnston Press is the
market-leading publisher of local
newspapers. This is achieved 
through a combination of paid-for
daily and weekly titles, weekly free
newspapers, specialist print
publications, such as lifestyle
magazines, local business directories
and classified advertising products
complemented by local websites.
By Tim Bowdler 
Chief Executive
2003 was another excellent year for Johnston Press. The integration of Regional Independent Media
Holdings Limited (RIM) was substantially completed, well ahead of our original expectations in terms 
of progress, performance and payback. Our continued focus on organic revenue growth and tight cost
control, coupled with reduced newsprint prices, enabled the Group to achieve record profits and
industry-leading operating margins.
Chief Executive’s
REVIEW
The “myuk” report
illustrates the considerable
extent to which people’s
lives and daily affairs are
concentrated in an area
close to their homes,
whether for work,
shopping, leisure or social
activities.  Johnston Press  Annual Report and Accounts 2003
Part of Life
10
Chief
Executive’s REVIEW
The Group’s strategic focus remains
firmly fixed on print and electronic
publishing in local markets around the
UK. We continue to place a high
emphasis on the achievement of
organic revenue growth. We constantly
review our existing publications to
ensure that they respond to changing
market needs. We continually seek
opportunities to launch new locally
based print publications and, as a
result, the number of specialist
products published by the Group has
grown considerably in recent years.
We have ongoing initiatives to expand
our business with existing advertisers
but also to seek new advertising
revenue opportunities as the shape
and business profile of our local
marketplaces change. 
We continue to increase the number
of websites focused on our local
communities, expanding their content,
improving their functionality and
promoting their brands, all part of a
concerted strategy to serve this new
and growing market opportunity. We
have launched several new initiatives
aimed at developing the potential
from building local consumer
databases. We have enabled
advertisers to book and pay for
advertisements on-line as well as
providing all of our sales staff with
access to the best advertisement
ideas and designs through our 
Group Intranet.
Although no acquisitions were
completed during 2003, the Group
remains keenly focused on the
achievement of continued acquisitive
growth in the UK regional press. With
a market share of less than 15%, we
believe that Johnston Press can
expect to grow further, even if over
70% of the sector is now in the
ownership of the four largest regional
newspaper publishers. We closely
monitor industry developments but
will remain selective in those
opportunities which we choose to
pursue. Thus, during the year, we did   Johnston Press  Annual Report and Accounts 2003
Part of Life
11
not participate in the bidding process
for Trinity Mirror’s Irish titles or for the
London-based regional newspapers
being sold by Independent News &
Media. In neither case did we regard
the strategic fit as sufficiently
compelling to make an offer.
Media Ownership
The extent to which further industry
consolidation will occur is also
dependent upon the regulation of
newspaper transfers. At the end of
2003, the new Communications Act
reached the statute book, significantly
changing the regulatory process. The
need for prior ministerial consent to
newspaper transfers and related
criminal sanctions has been removed. 
Whilst, at first glance, this may seem
to represent an easing of the
regulations, we do not believe that
this will be the case in practice. This
is in part due to uncertainty as to how
the OFT, DTI and OFCOM will treat
newspaper transfers and also reflects
the unhelpful conclusions of recent
Competition Commission inquiries. It
is the opinion of Johnston Press that
the Commission has tended to take
an overly narrow view of market
definition which considerably
underestimates the extent to which
local newspapers are subject to
competition from alternative media.
We believe that they have also
misjudged the ease of new market
entry and underestimated its impact
on publisher behaviour.
However, we do not believe that the
introduction of the Communications
Act 2003 will deter further sensible
industry consolidation and we are
confident that over time the regulators
will reach a clearer understanding of the
ways in which our markets operate.
We continue to harbour hopes that the
Government’s promises of genuine
deregulation and a lighter touch
approach will be delivered.
Trading Performance
Whilst market conditions during 2003
were by no means buoyant, the
Group succeeded in growing like-for-
like advertising revenues by 3.8%,
comprising 3.0% in the first half
increasing to 4.6% in the second.
When compared with the media
industry in general, this represents a
strong performance and reflects the
Pre-School
• Birth announcements
• Nativity features
• Mother and baby magazine 
• Nursery and child care features
• Baby of the year Johnston Press  Annual Report and Accounts 2003
Part of Life
12
Chief
Executive’s REVIEW
fact that consumer confidence in local
markets remained positive throughout
the year. This, coupled with the
related factors of rising house prices
and low levels of unemployment, is
the principal determinant of the health
of advertising revenues in the regional
press. In the vast majority of our local
markets, this ensured a relatively
stable trading environment.
Growth was achieved in every
advertising category in the second 
half of the year. Although all classified
categories grew over the year as a
whole, display advertising was
marginally down due to the poor
performance of national display
advertising in the first half. The growth
in advertising revenue reflected a
modest increase in volumes, fuelled
by strong growth in property
advertising, and improved yields in all
categories as a result of the continued
increase in colour advertising, which is
sold at a premium, along with normal
rate card increases. 
Recruitment advertising grew strongly
in the second half, up 7.7% against
weaker 2002 comparatives although
performance was patchy. The north of
the country, except for the northeast
of England, exhibited good growth
whilst trading continued to be more
difficult in the south. This was
particularly the case in the South
Midlands where we experienced
further declines as a result of the
more difficult economic conditions
around the greater London area.
However, the trends improved as the
year progressed.
School Age
• Partnerships with local schools
• Class photographs 
• Literacy campaigns
• Sports days
• Road safety campaigns
Property advertising demonstrated
strong growth throughout the year, up
14.5%. The second half performance
was marginally down on the first half
as the comparatives were more
difficult but, nonetheless, remained
strong. All areas of the country saw
good growth which was the result of
a cooling property market in which
vendors had to work harder to sell
their properties. This was especially
true of the new homes market which
in 2002 was so buoyant that
advertising often proved unnecessary.
The motors market remained relatively
stable with modest growth of 1.4% in
the year and broadly similar levels
being achieved in each half. Whilst
there were regional variations, these
did not follow any pattern and
fluctuations from the norm were
moderate. Other classifieds grew
steadily through the year, achieving
4.6% overall and also exhibiting
similar levels of growth in each half.
Again, there were modest regional
variations which did not follow a
particular pattern.
After a decline of 1.7% in the first
half, display advertising recovered to
record second half growth of 0.2%.
This was primarily due to a significant
improvement in national display
advertising, driven by recovery post
the Iraq war and increased activity
from the supermarkets, but also
reflected a marginally better local
performance. Given the relatively
volatile nature of national display
advertising, there were significant
local variations but, once more, no
clear regional pattern.
Operating margins for the Group, 
pre-operating exceptional items, were
again ahead of the previous year, with
an increase from 30.6% to 33.1%.
Every division increased its operating
profit and margin, a creditable
performance which reflected continued
excellent control over costs, aided by
a reduction in newsprint prices. This
enabled modest revenue growth to be
converted into a significantly greater
increase in operating profit. 
Performance has also benefited from
a continued programme of investment
in updated IT systems with common
platforms being introduced across
entire divisions. Having strengthened
the co-ordination of such initiatives
across the Group by the appointment
of a Head of IT following the
acquisition of RIM, considerable  Johnston Press  Annual Report and Accounts 2003
Part of Life
14
Chief
Executive’s REVIEW
progress has been made in utilising
the benefits that these technological
developments offer. In 2004, it is
anticipated that two more publishing
divisions will move to an enhanced
division-wide operating platform.
Those businesses which were part of
the Group prior to the acquisition of
RIM increased their pre-exceptional
operating margins from 31.7% to
33.3%. The ex-RIM businesses
managed a substantial improvement
with pre-exceptional operating
margins rising from 27.9% to 32.9%
and are now performing very close 
to the overall Group average. This
achievement reflects the very
considerable progress which has
been made since the business was
acquired. The initial integration
programme was completed some
time ago, ahead of our plans, and we
are now well into the more detailed
task of achieving the local operating
synergies which the acquisition offered.
There is an expectation of further
benefits during the course of 2004.
In Scotland, where we publish across
the middle belt of the country and in
large parts of the Scottish borders,
market conditions were less helpful
overall than for many other parts of
the Group. The continued increase in
profitability reflects local management’s
excellent control over costs and
realisation of the anticipated benefits
from the integration of the south of
Edinburgh-based Bonnyrigg operation,
which was acquired in 2002 as part of
RIM. In a particularly challenging
marketplace, Isle of Man Newspapers
again performed well. During the year,
they improved the design and content
of their three newspaper titles as well
as launching a lifestyle magazine. 
Northeast Press, which publishes from
Alnwick in the north to Hartlepool in
the south of the region, continues to
make good progress with profitability
now close to the Group average. On
its acquisition in 1999, this business
had operating margins which were
barely into double figures. This
improvement has been achieved
through a combination of cost and
revenue initiatives, with good progress
being made during 2003 through the
introduction of new advertising
platforms such as business and
health supplements.
The North of England division is our
largest and publishes extensively
throughout many parts of Yorkshire.
The division comprises three
companies from RIM, including
Yorkshire Post Newspapers, and three
which were previously part of the
Group. Across the division, market
conditions have generally been
favourable, although the substantial
improvement in performance owes
much to the excellent progress made
with the integration of the businesses
post-acquisition. Whilst each remains
firmly focused on its local markets,
opportunities have been taken to
rationalise and improve the efficiency
of functions such as pre-press,
distribution, accounts, credit control
and printing. A number of new
revenue initiatives have also
contributed to the improved
performance.
The Northwest division performed
extremely well, achieving above
average revenue growth which was
converted to a significantly improved
bottom line. Excellent progress has
been made in all companies and
across all aspects of the business
including initiatives to drive revenue Johnston Press  Annual Report and Accounts 2003
Part of Life
15
growth and to improve operating
efficiencies. The division comprises
five separate companies with
publications covering large parts of an
area from Morecambe in the north to
St Helens in the south, and from
Fleetwood in the west to Colne in the
east. The entire division formed part
of the RIM acquisition and includes
two specialist off-road motorbike
magazines which have repaid
increased investment with a
considerable improvement in
performance.
The South Yorkshire & North Midlands
division is based around the ex-RIM
centre of Sheffield, together with three
previously owned businesses whose
publications circulate in large parts of
South Yorkshire, North Lincolnshire,
Derbyshire and Nottinghamshire. As
with the North of England division,
considerable progress was made
during the year, assisted by good
revenue growth, but reflecting similar
business efficiencies. South Yorkshire
Newspapers performed particularly
well and achieved substantial growth
in the circulation of its flagship title,
the Doncaster Free Press. North Notts
Newspapers also had an excellent
year with a highlight being the
conversion of the Ashfield Chad from
a free distribution newspaper to a
paid-for title achieving a weekly
circulation of over 12,000 copies. 
The East Midlands division, which
publishes throughout much of
Lincolnshire, Cambridgeshire and
parts of East Anglia, operates in
markets where revenue growth was
more difficult and below the Group
average. Progress was made at
Lincolnshire Newspapers following
the earlier re-organisation of its
newspaper portfolio and the launch 
of a new free newspaper. The overall
improvement in profitability reflected
good control over costs and the
results of initiatives such as the
launch of an up-market property
magazine in Peterborough and the
T eenage/Graduate
• Education supplements
• Relationship with local
universities
• Entertainment guides
• Used cars for sale
•‘What’s On’ website  Johnston Press  Annual Report and Accounts 2003
Part of Life
17
Chief
Executive’s REVIEW
conversion of the monthly free title,
Peterborough on Sunday, to a weekly
publication.
Revenues in the South Midlands were
virtually flat year-on-year and, in those
circumstances, the achievement of a
modest improvement in profitability
was particularly creditable. Whilst
recruitment revenues improved as the
year progressed, the run rate still
showed a small deficit at the year-end
and a 6% reduction over the year as
a whole. The division publishes
throughout Northamptonshire and
Bedfordshire and is present in
Hertfordshire, Warwickshire,
Buckinghamshire and Oxfordshire.
Improved efficiencies were achieved
through the consolidation of pre-press
and finance departments across the
division and several lifestyle
magazines were launched.
Revenue growth in the south of
England fell marginally short of the
Group average, a reflection of the
more difficult economic conditions
generally experienced in the south
east of the country. Good control of
costs enabled the division to make
further progress. Headquartered in
Portsmouth, the division publishes in
the eastern part of Hampshire and
extensively throughout East and West
Sussex. We are now benefiting from
the successful installation of a new
advertising and sales ledger system,
which provides a common platform
for the entire region. This has resulted
in improved operational efficiencies
and new revenue opportunities.
Circulations
The message from our weekly
circulation figures is resoundingly that
local news sells. A 1.3% increase
means that we have now achieved
seven consecutive years of circulation
growth for our weekly titles. Over the
years, we have continued to invest in
content, design and colour availability
to ensure that we continue to appeal
to readers and meet advertisers’
needs. Approximately half of the
Group’s 241 titles are paid-for weekly
newspapers, more than are owned by
any other UK publisher. 
Despite the evident demand for local
news, this has not translated into
increased circulations for our daily
newspapers which remain in modest
but stubborn decline. After adjusting
for planned reductions in bulk sales,
underlying circulations were down by
2.5%. Within that overall figure, there
were several encouraging
performances, notably the continued
growth in the sale of the Blackpool
Gazette and real progress towards
stability in Wigan and from our two
evening newspapers in
Northamptonshire. However, the
overall performance remains
disappointing despite considerable
efforts around the Group to bring
about an improvement. Through the
newly constituted Daily Newspaper
Sales Forum and individually at local
level, these efforts have been
redoubled to encourage a reversal in
the trend towards casual purchase
and away from 6-day home delivery.
Part of this initiative involves a more
sophisticated approach to canvassing,
utilising database technology. The
Group continues its policy of gradually
reducing the inclusion of bulk sales in
published circulation figures.
Content
Community involvement and the
quality and relevance of editorial
content are fundamental to successful
local newspaper publishing. Johnston
Press sets the highest editorial
standards backed by investment to
enable editors and their newsrooms
to meet the needs and aspirations of
the local communities in which they
publish. Editors are given absolute
freedom to determine both content
and their editorial approach within 
the guidelines set out in the Press
Complaints Commission’s Code 
of Practice.
Job Hunter
• Over 14,000 jobs advertised
weekly
• New ‘Jobs Today’ website
• Employer reviews
• Jobs and careers fairs
• CV matching Johnston Press  Annual Report and Accounts 2003
Part of Life
18
Chief
Executive’s REVIEW
With 241 titles it is impossible to do
justice to the huge range of content
which is published by Johnston
Press. Some examples follow and
further details of the ways in which
our newspapers bring benefits to their
local communities are set out in the
Corporate Social Responsibility
Statement on pages 36 to 38.
Our titles have initiated a number of
important editorial campaigns during
the year, many of which have received
national recognition. The Fife Herald
was one of the first to highlight health
fears over the introduction of TETRA
masts to improve communications for
the emergency services. Several
campaigns initiated by the Yorkshire
Evening Post have been praised by
the Prime Minister, including “Life in
Leeds” which was launched to attract
extra funding for inner-city areas in an
attempt to address severe
deprivation. The Halifax Evening
Courier’s campaign to tackle a culture
of drink-fuelled late night violence has
achieved strong local support
resulting in real progress. The
Pocklington Post won thousands of
people a compensatory goodwill
payment following inconvenience and
damage suffered as a result of an
electrical power surge. The Sheffield
Star, whose local MP is the Home
Secretary, campaigned successfully
for a change in the law to hold family
members jointly responsible for the
welfare of their elderly relatives. A
Peterborough Evening Telegraph
campaign to tackle anti-social
behaviour also attracted praise from
the Prime Minister. The News in
Portsmouth has pursued a 
long-running campaign for recognition
of the gallantry of Second World War
seamen who kept the Soviets
supplied in the most treacherous of
conditions.
Investigative journalism also plays an
important part in the local publishing
agenda. Amongst numerous Yorkshire
Post investigations, those into
hospital waiting lists and serious
failings at care homes in the region
merit particular mention, the latter
being submitted for consideration 
by a Commons’ Health Select
Committee inquiry into abuse of the
elderly. The Yorkshire Evening Post
investigation into the activities of the Johnston Press  Annual Report and Accounts 2003
Part of Life
19
BNP was widely praised. New
regulations banning security staff from
membership of extreme political
organisations owed much to a
Bedford Times & Citizen investigation
into the Yarl’s Wood detention centre
riots. The Halifax Courier has
highlighted what some claim to be
one of Britain’s greatest industrial
catastrophes at the former Acre Mill in
Hebden Bridge where hundreds of
deaths were caused by asbestosis.
The revealing Yorkshire Evening Post
investigation into the finances of
Leeds United exposed remarkable
details down to the £20 spent
monthly on goldfish for the
Chairman’s office.
However, the vast majority of our
editorial coverage is concerned with
grassroots local issues which are of
vital importance to the particular local
community involved. There is no
better example of this commitment
House-buyer
• Over 50,000 properties
advertised weekly
• Exclusive Homes publications
• ‘Property Today’ website with
school catchment functionality
• Homes features
• Find a plumber, electrician,
decorator....
than the monthly community
newsletters launched by South
Yorkshire Newspapers to serve very
small local communities such as
Rossington, Armthorpe and Askern. It
is strong local news coverage of this
sort which has resulted in numerous
awards for our titles during the course
of the year, such as the Southern
Reporter being nominated Best
Weekly Paid-For Newspaper in
Scotland for the second successive Johnston Press  Annual Report and Accounts 2003
Part of Life
20
Chief
Executive’s REVIEW
year. Many other of our titles were
also recognised for their excellence.
But as well as informing, local
newspapers need to entertain. One
such story which reached national
prominence in 2003 concerned
George the budgie. Reported first by
the Wakefield Express, the story
concerned a budgerigar whose head
was turned red as a result of drinking
too much cherryade!
Electronic Publishing
The Group now has more than 160
local websites to complement our
local newspapers. Page impressions
continue to grow and by the year-
end were up by 40% to over 14
million per month. Revenue growth
remains strong and increased by 6%
on a like-for-like basis, despite a
reduction in the RIM companies’
non-profitable revenue streams. 
2003 was the third successive year
in which our electronic publishing
activities made an increased
contribution to profit.
Every company now regards its
websites as an integral part of its
publishing portfolio. All are based on
a common template but which allows
extensive tailoring to local needs in
terms of design and content whilst
ensuring cost efficiency and
centralised technical support. During
the year, our property and motors
sites were substantially upgraded with
numerous improvements in design
and functionality. The result is already
beginning to show in terms of both
content and revenues, for example,
we now carry at any one time around
200,000 cars for sale. A similar
upgrade of our jobs site has recently
been completed and we have re-
launched our on-line business
directory which provides listings for
many thousands of local businesses.
Further development plans are in
progress and there is an expectation
that revenues and page impressions
will continue to grow strongly.
Printing
2003 was a year of real progress for
the Printing Division which began to
reap the benefits of earlier
investments in new and upgraded
capacity. The primary focus of the
Printing Division is to meet the
requirements of the Group’s
publications. With virtually every
Johnston Press title now printed 
in-house or under an inherited RIM
long term printing contract in the
Northwest, there was also an
opportunity to take on additional
contract printing from several national
newspaper publishers. Better control
over costs and an end to the
disruption which followed the recent
extensive programme of press
upgrades resulted in significantly
improved profitability. 
Further investments were initiated
during 2003 to increase the colour
capability of the Leeds and
Sunderland presses. An additional
colour tower at Leeds will be
commissioned by the end of the first
quarter of 2004 and this will be
followed by the installation of digital
inking which will result in improved
quality and reduced waste.
Computer-to-plate technology was
also successfully introduced at Leeds
during the year. At Sunderland, we
are installing an additional colour
tower which requires a building
extension and we are also upgrading
the existing towers to enable them to
print full colour on both sides of the
web. Work continues on the major
Sheffield project which was
announced with the first half results
and good progress has been made in
identifying a suitable site and in terms
of the press specification. We expect
this project to be completed by the
end of 2006.
Family
• Community campaigns and
awards
• Days out guides
• Local sports and activities
• Retail opportunities
• Wedding fairs
• Recreational features
• Holidays  Johnston Press  Annual Report and Accounts 2003
Part of Life
22
Chief
Executive’s REVIEW
During the year, we benefited from a
reduction in the price of newsprint
and prices have remained broadly
unchanged for 2004. We have also
reduced further the number of
suppliers to the Group. This reflects
the reliability now being achieved in
deliveries and quality and will enable
us to reap further efficiencies in our
pressrooms due to fewer set-up
changes.
Organisation and People
Our senior team remained unchanged
throughout the year both at Head
Office and amongst divisional
management and key functional
heads. The performance of Johnston
Press has undoubtedly benefited from
their considerable experience and
high motivation.
A number of important appointments
were made during the year, including
several at company managing
director level. Four new managing
directors were appointed in the
Printing Division, three from outside
our immediate industry sector, an
initiative which is already paying
considerable dividends. During the
year, a large number of employees
attended in-house training courses
covering a wide range of topics and
disciplines. We continually seek to
make improvements to our training
programmes to ensure that our
employees develop the skills they
require to fulfil their existing roles and
develop their careers with the Group.
To increase the depth of potential
managerial talent available to the
Group, we have introduced a
Commercial Trainee Leadership
Programme under which we have
recruited a number of young
university graduates who will receive
ongoing training, guidance and
workplace experience to develop 
their talents.
Senior Citizens
• Outings and activities
• Community involvement and
campaigns
• Leisure features
•“Grey” supplements
• Nostalgia
• Health information services
We remain abreast of the continuing
stream of new legislation which
relates to employment and in many
areas we are ahead of the legislative
requirements. For example, we have
already initiated plans to improve
communications and consultation
with all of our employees and we are
also actively seeking ways of
increasing diversity, especially
amongst our journalists so that our
editorial departments more closely
reflect the mix of the communities in
which they are based.
As a Group, we recognise the
overwhelming importance of our 
staff to the success of the business.
During the year, with shareholder
approval, we introduced a Share
Incentive Plan and, given the
performance achieved in 2003, this
will result in all qualifying employees,
representing the vast majority of those
we employ, receiving free shares in
Johnston Press. To safeguard the
funding position of our defined benefit
pension schemes, we injected £12.6
million of cash and we made
significant improvements to our
defined contribution pension schemes
and related benefits. We remain
committed to being a progressive
employer and will continue to take
steps which recognise the importance
and value of all of our staff.
TIM BOWDLER
Chief Executive
17 March 2004   Johnston Press  Annual Report and Accounts 2003
Part of Life
25
By Stuart Paterson
Finance Director
In 2003, Johnston Press reaped the benefits of the successful integration of Regional
Independent Media Holdings Ltd (RIM) and this, together with continued organic growth 
in all of the operating divisions, ensured that 2003 was another very satisfactory year.
Financial
REVIEW
Financial Review
In comparing performance between
2003 and 2002, it should be noted
that the acquisition of RIM took place
on 12 April 2002, with the result 
that only 37 weeks of trading were 
consolidated in the 2002 results. 
Like-for-like references in this review
include the RIM companies for the full
year in 2002. The results for the two
years are shown in the table below.
This demonstrates that total turnover
increased by 14.8%, the turnover
from the ex-RIM business by 42.9%,
and for pre-RIM Johnston Press
business by 3.6%.
At the operating profit level these
increases were 24.2%, 68.2% and
8.8% respectively.
Operating profit 
before operating 
Turnover exceptionals
2003 2002 2003 2002
£'000 £'000 £'000 £'000
Total per accounts 491,843 428,394 163,033 131,217
Contribution from RIM 174,296 121,993 57,343 34,097
Underlying performance 317,547 306,401 105,690 97,120
Total revenue by division
A
B
D
C
E
F
G
H
IJ
A Scotland 6%
B Northeast 6%
C North 22%
D Northwest 11%
E S Yorks / N Midlands 14%
F East Midlands 9%
G South Midlands 15%
H South 12%
I Printing 4%
J Other 1%
Advertising revenue 
by category
A
B
D
C
E
A Employment 29%
B Property 14%
C Motors 12%
D Other Classified 15%
E Display 30%
2003
2003 Johnston Press  Annual Report and Accounts 2003
Part of Life
26
Financial
REVIEW
Revenues
Advertising revenues for the Group on a like-for-like basis were as follows:
The acquired business (RIM) and the
existing business experienced like-
for-like advertising revenue growth
for the full year of 5.3% and 3.0%
respectively. The higher growth in the
acquired business is primarily due to
better performance in the employment
category. The markets in Yorkshire
and Lancashire, where RIM is based,
did not experience the reduced
confidence which tended to
influence markets in the Home
Counties and South East of England.
On a like-for-like basis, the
advertising revenues for the enlarged
group grew by 3.8%. This was driven
by a 1.6% increase in advertising
volumes and a 2.2% increase in
yield. This increase in yield was
achieved despite the high growth in
property advertising which is our
2003 2002 Increase
£m £m %
Enlarged Group
Employment 106.4 101.7 4.7
Property 51.0 44.5 14.5
Motors 46.1 45.5 1.4
Other classified 56.8 54.2 4.6
Total classified 260.3 245.9 5.8
Display 109.8 110.6 (0.7)
Total advertising revenue 370.1 356.5 3.8
lowest yielding category. Apart from
rate card rises, the increased yield
also reflects our recent investments
in additional colour printing
capability, as colour advertising
commands a price premium.
The Chief Executive's report on
pages 8 to 23 provides a summary
of advertising performance by
division.
Half year to 31 December Half year to 30 June
2003 2002 Increase 2003 2002 Increase
£m £m % £m £m %
Employment 52.0 48.3 7.7 54.4 53.4 2.0
Property 24.2 21.4 13.0 26.8 23.1 15.8
Motors 22.5 22.3 0.9 23.6 23.2 1.8
Other classified 28.1 26.8 4.7 28.7 27.4 4.6
Total classified 126.8 118.8 6.7 133.5 127.1 5.0
Display 55.7 55.5 0.2 54.1 55.1 (1.7)
Total advertising revenue 182.5 174.3 4.6 187.6 182.2 3.0
Below is a breakdown of the advertising revenues on a like-for-like basis for the two half years. Johnston Press  Annual Report and Accounts 2003
Part of Life
27
The rate of growth in advertising
revenues was stronger in the second
half of the year principally due to a
recovery in display advertising after
the Iraqi conflict and employment
revenue improving across all regions.
Circulation revenues on a like-for-like
basis rose by £1.2 million (1.9%)
reflecting increased circulations of our
weekly titles and limited cover price
increases more than offsetting
reduced circulations of our daily titles.
The like-for-like trend in contract
printing revenues showed a slight
decrease of 3.6% reflecting the
concentration of the Printing Division
on our in-house titles and the
reduction in external capacity
available once the titles from the
closed press at Harrogate were
absorbed.
Total income from the other revenue
categories on a like-for-like basis,
which include new media, leaflets
and sundry, increased year-on-year
despite the comparative figures
including the full-year turnover of
Yorkshire Post Training which was
sold in 2003 as explained in note 14.
New media revenues grew 6.3%
even with a reduction in non-
profitable web building and hosting
activities performed by the former
RIM companies. The contribution
from our new media activities is now 
£3 million. Leaflet sales were ahead
by 7.4%, with a strong second half
performance. Revenue from reader
holidays suffered in the period post
the Iraqi conflict, down by 3.4%. 
Margins
With the increase in organic
revenues detailed above, a
continued focus on all elements of
cost in the business and ongoing
efficiency-led investment, every
operating division delivered an
improved margin for the year. For the
existing Johnston Press companies,
the operating margin, as indicated on
page 25, improved from 31.7% to
33.3% and, for the acquired
business, the margins improved from
27.9% to 32.9%. This increase
provides clear evidence that the
synergies, now well in excess of 
£10 million, identified prior to the
acquisition have been delivered. 
The Group operating profit margin
increased from 30.2% to 32.6%.
After two years of newsprint price
reductions, it is anticipated that in
2004 prices will be flat.
Cash Flow/Net Debt
Free Cash Flow increased by 10%
over 2002. The operating cash flow
and cash conversion of the business
continues to be strong. Net debt
closed the year at £423 million,
down some £80 million. The
reduction has been affected by a
number of factors: capital
expenditure at £18 million was lower
than anticipated as the press room
expansion at Sunderland, although
committed and underway, has not
yet generated significant outflows
and, in September 2003, a one-off
payment of £12.6 million was made
into the defined benefit pension
funds to help address funding
deficits (see below).
Cash flows have also benefited from
part of the interest on the Private
Placement funding for the second half
of 2003 not being payable until
January 2004. The Private Placement
of 10-year Senior Notes was made in
January 2003 to replace the £100
million 364-day portion of the Group's
debt together with an additional £33
million of the amortising facility.
Over the course of the year, the
Group has invested in new advertising
systems and this has resulted in an
opportunity to regionalise our credit
control and cash collection activities.
These projects have only recently
been implemented and have resulted
in slightly higher debtor levels than we
would have desired. However, we
expect them to deliver longer-term
benefits.
Interest cover for the year was 5.0
times.
Financial Investments
As the Group is entirely UK-based, our
financial risk exposures are mainly
associated with interest rates. With
the £133 million private placement,
there is a dollar component of US$115
million but this has been swapped
back into floating rate sterling to
ensure the Group only has a potential
exposure to UK interest rates.
The Group's policy is to arrange
borrowings at the lowest possible cost
whilst continuing to operate within
covenants it is comfortable with. The
policy states that a minimum of 50%
of the debt should be hedged against
interest rate movements with the
balance being kept under continuous
review. As at 31 December 2003,
£360 million of the debt was hedged
or placed at an effective fixed rate of
5.3% for an average period of 5 years.
At the end of the year, the directors
reviewed the carrying value of the
Group’s investments. The listed
investments are carried at their stock
market value at 31 December 2003
and the unlisted investment in Mirago
plc, the UK, French and German
search engine, was written down by
20% (£0.7 million) based on the
directors' valuation. Johnston Press  Annual Report and Accounts 2003
Part of Life
28
Pension Funds/FRS17
2003 was again a very busy year on
the pensions front. Both of the
Group's defined benefit schemes
were subject to actuarial valuations
at 31 December 2002. The results of
these valuations are detailed in Note
25 to the accounts. In order to start
addressing the deficits reported in
the valuations and to meet the
Group's obligations under the MFR
rules, a one-off contribution to the
schemes of £12.6 million was paid in
September 2003 and this, combined
with the recovery in stock markets,
has resulted in the deficits being
reduced at 31 December 2003 by
approximately £10 million gross of
taxation. The reduction in the
ongoing deficits over the same
period was £30 million. The Group
also agreed with the pension fund
trustees of both schemes that any
approved future additional funding
requirement would be met by
increased contributions from both
employer and employees.
In April 2003, the defined
contribution Johnston Press Lifestyle
Pension Plan (JPLPP) was
contracted back into the state
scheme and company contribution
rates were increased in order to
increase the pension provision to
members of this scheme. The cost to
the Group of these changes is £1.3
million per annum. In June 2003, the
defined contribution section of the
RIM pension scheme was closed to
new entrants with all new Group
employees being offered
membership of the JPLPP .
Subsequently, in October 2003, the
defined benefit Johnston Press
Pension Scheme, which is closed to
new members, was merged into the
JPLPP and the merged scheme was
named the Johnston Press Pension
Plan. All of the above changes were
made in an effort to reduce
administration costs of the Group
schemes. During the course of the
year, full asset/liability studies were
performed for the defined benefit
schemes and, as a result, new asset
allocations and investment strategies
were put in place. Following on from
this, there was a review of investment
managers, with new managers being
appointed across all of the Group's
pension schemes. The Group is still
reporting under the transitional
arrangements of FRS17 pending full
implementation or the publication of
the International Financial Reporting
Standard on Pensions.
The Group also carries accruals for
unfunded ex-gratia pension
arrangements for certain former
employees. This liability is subject to
an annual actuarial valuation and this
resulted in an increase in the
provision of £0.3 million.
Corporate Social Responsibility
In continuation of the new practice
adopted last year, a separate
Corporate Social Responsibility
Report has been included on pages
36 to 38.
Accounting Standards
The Group, in conjunction with the
auditors, is reviewing the impact on
the Group of implementing the
proposed International Financial
Reporting Standards from 2005. 
This process is ongoing and has yet
to identify any significant impact on
accounting policies or matters that
would require a re-statement of the
Group accounts. The review will
continue as the Standards covering
areas such as pensions and share
based payments have yet to be
confirmed.
During 2004, the provisions of UITF
17 (Revised 2003), "Employee Share
Schemes", will be effective. The
requirement of these provisions is
that a charge is recognised in the
financial statements of the Group to
reflect the difference between the
"fair value" of shares awarded
through options or Save as you Earn
schemes and their option price. It is
currently estimated that the impact
of this accounting change on the
Group's statements for 2004 will be
a cost of approximately £0.5 million.
As mentioned in the Chief Executive's
Report, the Group implemented a
Share Incentive Plan in January 2003
for all qualifying employees. This
plan provides free shares for those
employees based on financial
performance targets determined by
the Board of Directors. As the Group
has exceeded the maximum
performance level in 2003, shares 
to the value of £1.5 million will be
distributed to participating employees
based on their contracted hours of
employment.
Dividends and Earnings per Share
Headline earnings per share at
32.36p were 21% up on 2002.
Subject to approval at the Annual
General Meeting on 30 April 2004,
the total dividend per share for the
year will be 6p, an increase of 11.1%.
STUART PATERSON
Finance Director
17 March 2004
Financial
REVIEW Johnston Press  Annual Report and Accounts 2003
Part of Life
29
Management
COMMITTEE
Group Management Committee
Divisional Managing Directors
Stuart McPherson
Scotland
Gary Fearon
Northeast
Chris Green
North
Margaret Hilton
Northwest
David Edmondson
North Midlands &
South Yorkshire
Mike Hutchby
East Midlands
Chris Pennock
South Midlands
Michael Johnston
South
Graham Gould 
IT
John Bradshaw
New Media
David Crow
Printing
From front left clockwise: Henry Faure Walker, Business Development Manager;
Richard Cooper, Company Secretary; Tim Bowdler, Chief Executive; Stuart Paterson,
Finance Director; Malcolm Vickers, Director of Human Resources; Danny Cammiade,
Director of Operations.  Johnston Press  Annual Report and Accounts 2003
Part of Life
30
Board of
DIRECTORS
R G Parry, BSc, MLitt
Non-Executive Chairman (50)
Joined the Board in 1997. 
Chairman of Nomination Committee. 
Chief Executive of Clear Channel
International. Non-Executive Chairman
of Future Network plc and Director of
iTouch plc. Trustee of Globe Theatre.
rparry@johnstonpress.co.uk
T J Bowdler, BSc, MBA
Chief Executive (56)
Joined the Board in 1994. 
Former Managing Director of Cape
Architectural & Building Products Ltd, a
division of Cape plc. Non-Executive
Director of Associated British Ports
Holdings plc, The Miller Group Ltd, The
Press Association Ltd and The Press
Standards Board of Finance. Immediate
Past President of the Newspaper Society.
tbowdler@johnstonpress.co.uk
S R Paterson, MA, CA 
Finance Director (46)
Joined the Board in 2001. 
Chartered Accountant.
Former Finance Director of Aggreko plc. 
Non-Executive Director of Mirago plc.
spaterson@johnstonpress.co.uk
F P M Johnston, CBE, MA
Non-Executive (68) 
Joined the Board in 1959. 
Former Managing Director and Chairman
of the Group. Former Non-Executive
Director of the Scottish Mortgage Trust
plc and Lloyds TSB Scotland plc.
fred.johnston@johnstonpress.co.uk
S J Waugh
Non-Executive (46) 
Joined the Board in 2003. 
Member of Audit Committee. 
Group Marketing Director of Centrica PLC.
Director of ISBA, Life Fellow of Marketing
Society and Institute of Direct Marketing.
swaugh@johnstonpress.co.uk
Roger Parry Tim Bowdler Stuart Paterson Fred Johnston Simon Waugh Johnston Press  Annual Report and Accounts 2003
Part of Life
31
Richard Cooper
(Secretary)
Sir Harry Roche Peter Cawdron Lord Gordon Harry Johnston Martina King
P R Cooper, ACA
Company Secretary (47)
Appointed Company Secretary in 1996.  
Chartered Accountant. 
Former Finance Director of Yorkshire
Weekly Newspaper Group Limited. 
rcooper@johnstonpress.co.uk
Sir Harry Roche 
Non-Executive Deputy Chairman (70) 
Joined the Board in 1993. 
Retires from the Board at 2004 AGM. 
Chairman of Press Association Ltd.
Former Chairman of The Press 
Standards Board of Finance.
hroche@johnstonpress.co.uk
P E B Cawdron 
Non-Executive (60) 
Joined the Board in 1998. 
Chairman of Audit Committee. 
Member of Remuneration and 
Nomination Committees. 
Former Group Strategy Development
Director of Grand Metropolitan PLC. Non-
Executive Director of a number of listed
companies, including Capital Radio plc,
Compass Group plc, ARM Holdings plc
and Capita Group plc.
pcawdron@johnstonpress.co.uk
Lord Gordon of Strathblane, CBE, MA 
Non-Executive (67)
Joined the Board in 1996. 
Chairman of Remuneration Committee.
Member of Nomination Committee.
Chairman of Scottish Radio Holdings plc,
previously its Chief Executive. Former
Chairman of the Scottish Tourist Board
and a member of the Scottish
Development Agency.
jgordon@johnstonpress.co.uk
H C M Johnston 
Non-Executive (57)
Joined the Board in 1971. 
Former Managing Director Johnston
(Falkirk) Ltd.
hjohnston@johnstonpress.co.uk
M A King
Non-Executive (43)
Joined the Board in 2003. 
Member of the Remuneration 
and Audit Committees. 
Managing Director, Country Operations
Europe, at Yahoo! UK Ltd, with extensive
experience in the media sector.
mking@johnstonpress.co.uk Johnston Press  Annual Report and Accounts 2003
Part of Life
32
The Company is committed to the
principles of Corporate Governance
contained in the 1998 Combined Code
on Corporate Governance and the 
2003 Revised Combined Code which 
is appended to the Listing Rules of the
Financial Services Authority and for
which the Board is accountable to
shareholders.
Statement of Compliance with The
Code of Best Practice
The Company has complied throughout
the year with the Provisions of The Code
of Best Practice set out in Section 1 of
the 1998 Combined Code. Following the
publication of the Revised Combined
Code in July 2003, the Board considered
all the provisions at its meetings in
September and October and decided on
early full compliance.
Statement of Application of The
Principles of Good Governance
The Company has applied The Principles
of Good Governance set out in Section
1 of the Combined Code and the
Revised Combined Code as reported
above. Further explanation of how the
Principles have been applied is set out
below and, in connection with directors’
remuneration, in the Directors’
Remuneration Report.
Board Effectiveness
The Board considers that it has shown its
commitment to leading and controlling
the Company by meeting nine times in
the year, but can meet when necessary
for any matters which may arise. The
Remuneration Committee met on four
occasions and the Audit Committee 
three times.
The Board sets the strategic aims and
objectives of the Company, ensuring that
the Company has sufficient financial and
human resources to meet the objectives.
The Board sets the Company’s values
and standards and ensures that its
obligations to its shareholders and others
are understood and met. Management
are responsible for the application of the
aims and objectives on a day-to-day
basis, monitoring the financial
achievements of the business. The Board
reviews the performance of management
in meeting the agreed objectives and
goals, plans the succession of key
executives, and determines appropriate
remuneration levels. 
At least one Board meeting is wholly
devoted to strategy and to the
development of a plan for the long term
growth of the Company. This is reviewed
and discussed as appropriate at the other
Board meetings held during the year.
In addition to the normal agenda at Board
meetings, which is described below, the
directors consider one operational or
special topic at each meeting. During the
last twelve months this has included
circulation of daily newspapers, future
press requirements, editorial policy,
national advertising and human resource
trends and issues.
Board Meeting Agenda
The Board receives a formal schedule of
matters specifically reserved to it for
decision, such as future strategy,
acquisitions and disposals, capital
expenditure, trading and capital budgets
and Group borrowing facilities. The Board
considers monthly reports from the Chief
Executive, Finance Director and Director
of Operations and Minutes of the Board
are circulated to all Board members. It
has also made the Company Secretary
responsible to the Board for the
timeliness and quality of information.
Board Responsibilities
The Board acknowledges the division 
of responsibilities for running the Board
and managing the Company’s business
with Mr R G Parry as Non-Executive
Chairman, Sir Harry Roche as Senior
Independent Director and Deputy
Chairman and Mr T J Bowdler as the
Company’s Chief Executive. Sir Harry
Roche has decided to retire at the Annual
General Meeting in 2004 and Mr P E B
Cawdron succeeded him as Senior
Independent Director in December 2003. 
Mr P E B Cawdron is available to address
any concerns that any shareholder may
have, which have not been resolved
through the normal communication
channels of the Chairman or Executive
Directors.
The Chairman of the Remuneration
Committee is Lord Gordon of Strathblane.
With regard to the Audit Committee, 
Sir Harry Roche was Chairman until
December 2003, when Mr P E B
Cawdron, who is a chartered accountant,
succeeded him.
Board Attendance
During 2003, every director attended all
meetings with the following exceptions.
Lord Gordon of Strathblane missed the
strategy meeting in June, although he had
a meeting previously with the Chairman to
express his views. Mr P E B Cawdron
was absent for the September meeting.
Mr R G Parry was absent for the August
meeting when the Board, led by the
Senior Independent Director, took the
opportunity of appraising the performance
of the Chairman.
The meetings of the Remuneration and
Audit Committees were attended by all
members either personally or by telephone.
Board Balance
Of the Company’s current ten Directors,
two are Executive and the remainder 
Non-Executive, of whom five are regarded
as independent, excluding the Chairman.
Other than the Chairman, those who are
regarded as non-independent are Mr 
F P M Johnston and Mr H C M Johnston,
who have significant shareholdings in the
Company and have previously served the
Group in an executive role.
It is the view of the Board that such
circumstances do not lessen the value 
of the contributions made by these two
Non-Executive Directors.
The Board determines that Sir Harry
Roche is independent despite serving on
the Board for ten years. He is highly
respected for his wealth of industry
Corporate
GOVERNANCE Johnston Press  Annual Report and Accounts 2003
Part of Life
33
experience and his totally impartial and
professional approach to his role. He
retires from the Board at the forthcoming
Annual General Meeting.
At least half the Board, excluding the
Chairman, comprises Non-Executive
Directors determined by the Board to be
independent.
Board Appointments
The composition of the Nomination
Committee was changed in December
2003. It was chaired throughout the
period by Mr R G Parry. Prior to the end
of December, it also comprised Mr P E B
Cawdron, Mr F P M Johnston and Sir
Harry Roche. The new Committee
comprises Mr P E B Cawdron and Lord
Gordon of Strathblane in addition to the
Chairman. Reporting to the Board, its
duty is to seek suitably skilled and
experienced candidates, with sufficient
time to devote to the role, as Non-
Executive Directors and to oversee all
Board appointments.
The terms of reference of the Committee
are displayed on the Company’s website
in the Investor Relations section.
During the last twelve months two
additional Non-Executive Directors were
appointed to the Board. The Nomination
Committee met in late 2002 to consider
the composition and balance of skills on
the Board at that time and, based on the
industry experience and skill set it felt
was required from the new
appointments, it prepared a clear brief
for the Board to consider. The Board
appointed external consultants to seek
suitable candidates based on the brief it
had agreed. Recommended candidates
were interviewed by the Committee and,
those that were felt to be suitable, by the
whole Board. The new independent
Non-Executive Directors were appointed
on 25 April 2003. They will retire at the
Annual General Meeting and will be
seeking election. 
Information and Professional
Development
The Chairman arranged a detailed
induction process for the two new 
Non-Executive Directors, including
meetings and discussions with advisers
and senior management, together with
the preparation of a full induction pack
and external courses. 
All Board members have access to
independent advice on any matters
relating to their responsibilities as
directors and as members of the various
Committees of the Board. The Company
Secretary is available to all directors and
he is responsible for ensuring that all
Board procedures are complied with.
Board Performance Evaluation
During the last year, the Board has
conducted a rigorous evaluation of its
own performance. This involved the
completion of an assessment
questionnaire by all directors covering the
performance of the Board, individual
directors and Board Committees. Other
topics included meetings, the provision 
of information, training and the overall
effectiveness of the Board. The
questionnaires were submitted to the
Company Secretary, who prepared a
summary of the conclusions, which were
discussed at the Board meeting in
January 2004. Separately, the Secretary
produced a report summarising any
individual recommendations for the
consideration of the Chairman. This was
followed up by meetings as appropriate
with individual directors.
Training is undertaken as required during
the year. The feedback from the recent
questionnaires will assist in the training
plan for the forthcoming year. The Board
arranges for its Non-Executive Directors
to visit the Group’s principal locations at
certain intervals to discuss the operations
with local management. In addition, at
least one Board meeting is held at one of
the Group’s centres and the Board
receives a presentation from the local
managing director and a tour of the
business.
Board Election/Re-election
It is the policy of the Board for all
directors to be subject to election at 
the first Annual General Meeting after
their appointment. In addition, all
directors are subject to re-election at
intervals of no more than three years,
although the Articles of Association
provide that one third of the Board must
retire every year.
The Chairman has, following the formal
evaluation process described above,
considered the performance of the
directors subject to election and re-
election at the 2004 Annual General
Meeting and is satisfied that the
individuals’ performance continues to be
effective and that they have demonstrated
a clear commitment to the role.
Financial Reporting
The Board has shown its commitment to
presenting appropriate information about
the Company’s financial position by
complying with non-mandatory
statements issued by the Accounting
Standards Board relating to the operating
and financial review disclosures which are
included in this Annual Report. 
Directors’ Responsibilities
United Kingdom company law requires
the Directors to prepare accounts for
each financial year which give a true and
fair view of the state of affairs of the
Company and of the Group and of the
profit or loss of the Group for that year.
In preparing those accounts, the
Directors are required to:
• select suitable accounting policies and
then apply them consistently;
• make judgements and estimates that
are reasonable and prudent;
• state whether applicable accounting
standards have been followed, subject
to any material departures disclosed
and explained in the accounts.
After making enquiries, the Directors
have a reasonable expectation that the
Company and the Group have adequate
resources to continue in operational Johnston Press  Annual Report and Accounts 2003
Part of Life
34
Corporate
GOVERNANCE
existence for the foreseeable future. For
this reason, they continue to adopt the
going concern basis in preparing the
accounts.
The Directors are responsible for keeping
proper accounting records which
disclose with reasonable accuracy at any
time the financial position of the
Company and enable them to ensure
that the accounts comply with the
Companies Act 1985. They are also
responsible for safeguarding the assets
of the Company and the Group and
hence for taking reasonable steps for the
prevention and detection of fraud and
other irregularities.
Internal Control
The Directors are responsible for the
Group’s system of internal control and
for regularly reviewing its effectiveness.
Such a system is designed to manage
rather than eliminate the risk of failure to
achieve business objectives, and can
only provide reasonable and not
absolute assurance against material
misstatement or loss. The system of
internal control has been designed to
meet the Group’s particular needs and
the risks to which it is exposed.
There is a ongoing continuous process of
identifying, evaluating and managing the
significant risks faced by the Group, which
has been in place throughout the year
under review and up to the date of
approval of the annual report and
accounts. This process is well
documented and regularly reviewed by the
Board. The key elements of the process
during the period under review have been:
• Formal Board reporting on a monthly
basis by the Chief Executive, Finance
Director and Director of Operations on
the Group’s performance and on any
emerging risks and issues. The monthly
management accounts break down the
results of the Group’s operations by
company performance and all
significant variations against budget
and the previous year are fully
examined. The day-to-day responsibility
for managing each of the Group’s
operations rests with local experienced
senior managers and the Group has a
clear organisational structure which
includes appropriate delegation of
authority. The Executive Directors
ensure that regular contact is made
with all senior managers. The Group
Management Committee, comprising
the Executive Directors, the Director of
Operations, the Company Secretary,
the Director of Human Resources and
the Business Development Manager,
meets every month to review the
financial and operational issues as well
as risks facing the Group.
• Formal Board approval for capital
expenditure over £250K and for other
investment decisions. Approval was
granted for all acquisitions and
disposals submitted.
• Formal Board approval of the annual
budget for the forthcoming financial
year. These are detailed and
comprehensive budgets, covering
each operating business.
• Review by the Audit Committee on a
six-monthly basis of the work
performed by the Internal Financial
Control Committee (IFCC) based on a
programme of work agreed in
advance. The IFCC is chaired by the
Company Secretary who is
responsible for the conduct of control
reviews in selected locations by
members of the Committee who are
independent of the location visited.
The IFCC is also responsible for the
review of detailed financial control
checklists submitted by each
operation to head office monthly.
• Review by the Audit Committee of the
results of the annual audit and review
of the half-year results by the Group’s
external auditors. These reviews
include discussion of any control
weaknesses or issues identified by 
the auditors.
• The conduct of risk assessment
involving all senior managers of the
Group’s businesses in addition to the
Group’s Executive Directors. The
results of these assessments are
summarised and reported to the entire
Board. These risk assessment
sessions will continue at each
operation and will evaluate the risks
identified. During 2003 there has been
a particular focus on an updated
Group health and safety policy,
management succession and the
implementation of an integrated IT
strategy across the Group.
In addition, the Group Management
Committee has the ongoing
responsibility to set policies, procedures
and standards as detailed in the Group’s
policy guidelines, which have been
updated as appropriate during the year.
The guidelines include policies on:
• Finance
• Cash/treasury controls
• Trading
• Customer service, information and
technology
• Property management
• Human resources including pension
administration, health and safety,
environmental issues and energy
management
• Legal and regulatory compliance
• Business continuity
At its meeting on 30 January 2004, the
Board considered the means by which it
monitors internal controls and concluded
that it was satisfied with its process for
monitoring internal controls and that this
process complies with the
recommendations of the Internal Control
Guidance for Directors in the Combined
Code. Johnston Press  Annual Report and Accounts 2003
Part of Life
35
The Directors also reviewed the need 
for an internal audit department and
concluded that they did not believe it
necessary for the Group to maintain
such a department, given the role of 
the IFCC and the current independent
review and monitoring procedures 
in operation.
Audit Committee
The composition of the Audit Committee
changed in December 2003. Previously
it was chaired by Sir Harry Roche, and
also comprised Mr P E B Cawdron and
Mr H C M Johnston. In December Sir
Harry Roche and Mr H C M Johnston
stepped down and were replaced by
Mrs M A King and Mr S J Waugh. Mr 
P E B Cawdron, a chartered accountant,
now chairs the Committee.
The Committee has written terms of
reference that outline its authority and
duties. This is displayed on the
Company’s website in the Investor
Relations section. The terms include a
review of the arrangements by which
staff may, in confidence, raise concerns
about possible improprieties in matters
of financial reporting or other areas.
The Committee meets once during the
year with the Company’s external auditors
to discuss and agree the audit
programme for the forthcoming year,
together with any proposed non-audit
work. The two other meetings follow the
interim financial review and the year-end
audit. They cover a comprehensive report
from the external auditors on their work
and their conclusions. The Committee
focuses on the areas of financial
judgement by the Company. It also
reviews the summary of the Company’s
key business risks and discusses any
revisions. The Committee is actively
involved in the annual review of internal
controls conducted by the main Board as
a specific topic at its meeting in January. 
In addition, the meetings consider a
report on the work of the Internal
Financial Control Committee. Its work is
described in the Internal Control section
and, given the detail and comfort
included in the report, the Committee
regard this approach as an effective way
to review the financial controls in the
business rather than establish an internal
audit function.
The Audit Committee meetings to
consider the financial results of the
Company are attended by the Finance
Director and the Company Secretary,
who acts as Secretary to the Committee,
with minutes being circulated to all
Board members. The Chairman and
Chief Executive are also invited to attend
if required to do so by the Committee.
Towards the close of both meetings, all
executives leave in order for the
Committee to have a private discussion
with the auditors.
At the meeting to review the Annual
Report and Accounts, the Committee
considers the non-audit services
provided by the Company’s external
auditors. These are fully explored and
discussed and the Committee is satisfied
that the objectivity and independence of
the external audit is safeguarded.
The Committee oversaw the
appointment of Deloitte & Touche LLP in
2002 and have a primary responsibility
for the appointment, re-appointment and
removal of auditors.
Dialogue with Institutional
Shareholders
The Board encourages and seeks to build
up a mutual understanding of objectives
between the Company and its institutional
shareholders. As part of this process, the
Chief Executive and Finance Director
make twice yearly presentations to
institutional shareholders and meet with
shareholders to discuss any issues of
concern and to obtain feedback. In
addition, they communicate regularly
throughout the year with those
shareholders who request a meeting. 
The Chairman personally contacts the
leading shareholders in the Company
every year to address any concerns and
discuss any issues. The full Board
receives a report on any discussion with
shareholders and the written feedback
that follows the half yearly presentations is
circulated to the Board. All brokers’
reports and analysts’ briefings are
included in the Board papers sent to the
directors every month.
Members of the Board have met with
institutional shareholders during the year
to consider Corporate Governance
issues. All the Non-Executive Directors
are prepared to meet with shareholders to
understand more fully their views.
Annual General Meeting
The Board seeks to encourage
shareholders to attend its Annual General
Meeting. Directors are present to answer
any questions from shareholders. It uses
the Annual General Meeting to
communicate with private investors and
encourages their participation. Johnston Press  Annual Report and Accounts 2003
Part of Life
36
Employee Involvement
It is the policy of the Group to encourage
and develop all members of staff to realise
their maximum potential. The Group’s
policy is that wherever possible all jobs are
advertised on the Group Intranet and
internal notice boards so that we maximise
the number of vacancies filled from within
the Group and create adequate
opportunities for internal promotion.
The Group supports the principle of equal
opportunities in employment and
opposes all forms of unlawful or unfair
discrimination on the grounds of race,
nationality, religion, ethnic or national
origin, sexual orientation, gender or
gender reassignment, marital status or
disability. The Ethical Code of Conduct
incorporated in all new employee
contracts reflects this principle.
It is also the policy of the Group, to give full
and fair consideration to the recruitment of
disabled persons. Where disabled persons
are employed, their training, including
training for alternative work of employees
that become disabled, and development
for promotion are encouraged and
assisted. Expert advice is taken on the
needs of disabled employees and special
equipment is provided where appropriate.
The Group is committed to a
comprehensive training and development
programme, creating the opportunity for
employees to maintain and improve their
performance and to develop their potential
to a maximum level of attainment. This
includes a senior management
development programme to identify and
coach individuals who may have the
potential to lead the future direction of the
Group. In 2003, the Group also instigated
a commercial leadership training
programme to guarantee the highest
calibre candidates from internal and
external sources are identified, to ensure
that the business is not constrained in the
future by a lack of new talent. In this way,
staff will make their best possible
contribution to the organisation’s success.
Group personnel policies ensure that all
employees are made aware on a regular
basis of the Group’s policies, programmes
and progress. Extensive use is made of
the Group Intranet, notice boards and a
newsletter will be published to coincide 
Business Ethics
The Board of Johnston Press has made
a clear commitment to operating all of
the Group’s business activities to the
highest standards of business ethics and
integrity. These principles are not only
contained in the Group’s Corporate
Social Responsibility Statement but it is
also policy to include these in
employment contracts. The code of
ethics specifically requires adherence
with all legal requirements.
The Group has the absolute objective of
always acting as a fair and reasonable
employer. We also acknowledge and are
keenly aware of our responsibilities to the
many communities we serve, our
customers, suppliers, shareholders, and
to the environment. Because of our key
role in the community, a separate section
has been added to this report detailing
some of the related activities in which the
Group’s companies are involved.
Board Responsibility
The Board has delegated the day-to-day
responsibility for all matters related to
Corporate Social Responsibility and social
issues to the Executive Directors. They
are assisted by the Company Secretary
who is the first point of contact for the
majority of these issues.
Specific responsibility for environmental
issues has been delegated to the 
Finance Director.
Whilst recognising that the practices of
recruitment, employment and training are
the responsibility of all managers within
the Group, responsibility for formulating,
updating and ensuring adherence to
Group policies has been delegated to the
Director of Human Resources who is
responsible to the Chief Executive.
Relationships with customers, suppliers
and the community are determined at
local level by the managing director of
each operating company and are subject
to review by the Director of Operations
who is responsible to the Chief Executive.
As part of the main Board’s review of
Corporate Governance at the January
2004 meeting, the directors also 
reviewed the Corporate Social
Responsibility Policy.
Corporate Social
RESPONSIBILITY
with the publication of the Annual Report
and Accounts. The Company operates a
number of share schemes as outlined in
the Directors’ Remuneration Report on
pages 39 to 43.
Community Involvement
For local newspapers, Corporate Social
Responsibility is nothing new … it is the
very essence of their being. The local
newspaper is an integral part of the local
community in which it publishes and is
passionately concerned with those issues
which are at the very heart of the
community. Throughout our portfolio of
local and regional newspapers and the
communities which they serve, we are
intimately involved in community issues
and in playing an active part in making
those communities better places to live,
work and play.
Concerns about health are often
uppermost on the agenda of local
communities. In that regard, our
newspapers have been actively involved in
challenging decisions to close health units
and hospitals, giving voice to community
concerns. Such campaigns have included
those run by the Kirkintilloch Herald to
retain the Stobhill General Hospital, the
Whitby Gazette to oppose the closure of
their local maternity ward, the Worksop
Guardian to fight the closure of their
Accident & Emergency Department and
the Hemel Gazette to highlight community
anger at a decision to downgrade the
local hospital’s acute services unit.
Our newspapers have been instrumental in
numerous health-related campaigns, often
initiating them. Many relate to cancer
facilities or charities such as appeals run
by the Fife Free Press to fund a Maggie’s
Cancer Care Centre in Kirkcaldy, the
Blackpool Gazette for a new cancer unit at
the local hospital and by the Milton Keynes
Citizen which successfully raised £1.5
million for a specialist cancer day
treatment centre. Newspapers such as the
Sunderland Echo, Shields Gazette and
Hartlepool Mail ran appeals in support of
local hospices and they were amongst
many. An appeal for dialysis machines was
run by the Mansfield Chad and, to support
their local renal unit, by the Peterborough
Evening Telegraph. The Yorkshire Post
gave a high profile to a campaign to Johnston Press  Annual Report and Accounts 2003
Part of Life
37
address hidden disabilities especially
autism. The Harborough Mail played a
central role in addressing an NHS dental
care crisis in the area. And these are just a
few of numerous such initiatives.
Individual and sometimes heart-rending
cases of illness are also given high
prominence by our newspapers in an
effort to gather support from local
communities. The Sunderland Echo
appealed for a bone marrow donor for a
local woman; a Blackpool Gazette appeal
raised £10,000 in a fortnight to fund
specialist surgery in America to correct a
growth deficiency in a young boy; a
successful Lancaster Guardian campaign
identified a donor to save a woman dying
from leukaemia. And, on a more general
front, the Lancashire Evening Post’s highly
acclaimed “Have a Heart” campaign
attracted almost 2,000 new potential
organ donors in just two months.
Road safety is another critical concern for
local communities. A long running
Kirkintilloch Herald campaign to tackle the
problem of “boy racers” often fuelled by
excess alcohol has received considerable
support and has involved local police and
schools. A similar campaign has been run
successfully by the Sheffield Star. Road
improvements in accident black spots
have resulted from campaigns run by the
Bury Free Press and the Bexhill Observer.
Drink drive campaigns are also a regular
feature in our newspapers.
Local newspapers also have a key role to
play in leading campaigns to make their
communities better places to live. Again
these are run by many of our titles with
examples including the “Clean Up Our
Towns” campaign by the Falkirk Herald,
the Pride in Mann initiative on the Island
and the “Pride in Padiham” campaign by
the Padiham Express. The long running
campaigns “Pride in Peterborough” and
“We Can Do It” in Portsmouth also
continue to generate great good in their
communities. It was particularly pleasing
for the Northampton Chronicle and Echo
to receive a Regional Green Apple Award
for their “Greener, Cleaner” campaign.
Where we have overseas links, our
newspapers look well beyond their local
communities in support of good causes.
Many of our titles sent out parcels to our
troops in Iraq, donated by local readers.
The Carluke and Lanark Gazette has
provided support at Christmas for children
in Romania and the Harrogate Advertiser
raised £25,000 to support an orphanage
in Malawi run by a couple from the town.
Other initiatives, too numerous to mention
in detail, have addressed a huge range of
issues of concern to local communities
around the country. The Bedfordshire
Times & Citizen campaign to improve the
behaviour of amateur footballers has since
been widely adopted; the Luton Herald &
Post played a leading role in the town’s
initiatives on ethnic diversity; the East Fife
Mail campaigned on solvent abuse; the
Southern Reporter addressed the issue of
aggressive behaviour towards school
crossing patrol staff; the News Post
Leader and Northumberland Gazette
distributed Christmas presents to
disadvantaged children; the Selby Times
tackled the problem of bullying; the
Derbyshire Times was instrumental in
saving an animal shelter; various of our
newspapers campaigned for
improvements to local buildings in places
such as Batley, Pontefract, Morecambe
and Harrogate; the Whitby Gazette played
a leading role in bringing about an
improvement in drinking water quality; the
Rugby Advertiser campaigned vigorously
against a possible major airport
development in the area; school closures
have been opposed by the Wigan
Observer and the Haywards Heath-based
Mid Sussex Times; the Blackpool Gazette
declared war on the carrying of knives; the
Lancashire Evening Post ran an extended
campaign against drink and violence; a
number of our newspapers ran schemes
to assist reading levels, such as the
Doncaster Free Press “reading passport”
campaign; we also have wide-ranging
links with schools in respect of related
educational campaigns; in Sudbury and
Chichester we campaigned for
improvements in local refuse collection.
But, perhaps the most unusual appeal
was by the Fenland Citizen to raise money
to enable the March Air Training Corps to
replace their instruments which were
stolen or destroyed in a raid on their HQ.
The above gives a flavour of the extensive
power for good which local and regional
newspapers are. Johnston Press strongly
encourages its managers, editors and staff
to play an active and constructive part in
their communities. Our commitment to
this is central to our role as local and
regional newspaper publishers.
Customer Services
It is Group policy to provide the highest
standard of service to all of our
customers. Each operating company has
staff appointed to respond to all customer
enquiries. There are strict procedures for
resolving customer complaints or queries
regarding service and these are carefully
monitored by management.
Local management in each operation are
responsible for ensuring that their
companies and all their employees comply
with the requirements of all customer and
competition-related legislation. It is Group
policy that the interests of Johnston Press
only ever require strict compliance and no
one in the Group has authority to give any
order or direction that would result in a
violation of this policy. To monitor this and
for training purposes, the Group
undertakes mystery shopping exercises.
Environmental Policy
The Group acknowledges that the
protection of the environment is one of our
key corporate responsibilities. We aim to
comply with all relevant regulations and
see the identification, management and
control of environmental risks as being an
implicit requirement for adherence to the
Corporate Governance Combined Code.
Further to the work started in 2002 by
independent environmental risk
consultants, which identified that the only
significant environmental risks lay within
the printing operations of the Group,
environmental impact registers have been
completed at each one of these locations.
The Group has worked with consultants
to develop a scoring methodology and
audit programme to facilitate the ongoing
monitoring and control of our policies and
procedures. Audits by the external
consultants have commenced and will
continue on a rolling basis. Detailed
reports are produced after each visit and
the implementation of these is monitored
by management. Johnston Press  Annual Report and Accounts 2003
Part of Life
38
During 2003, the Group benefited from
the more energy-efficient press equipment
installed in 2002 as well as the energy
monitoring and control equipment which
has been introduced. This has allowed the
Group to claim rebates against the
Climate Change Levy Tax and has
enabled more effective management of
our energy costs. On a full-year basis, the
Group’s energy costs reduced by 3.7%
between 2002 and 2003, despite the
newsprint tonnage processed through the
Group’s printing centres increasing by
5.1%. There have been a number of
reasons for this decrease, including the
movement of the ex-RIM companies onto
the Johnston Press Group tariffs, the
closure of the old inefficient press at
Harrogate with the titles displaced being
printed at more efficient Group presses
and the ongoing investment by the Group
in more efficient energy usage.
Consumption of energy in 2003, on a like-
for-like basis, was as follows:
As can be seen from the above, as well
as reducing its costs, the Group has
made reductions in its energy
consumption during 2003. The absolute
reductions were made despite increased
volumes. However, the reductions in
consumption per tonne are more
significant and demonstrate the energy
efficiency of the new printing equipment.
The large reduction in water consumption
is as a result of the Group’s investment in
"Computer to Plate Technology". This
removes the need for the imaging
process which was a significant user of
water. The Group has made significant
progress towards achieving the target in
its Energy Management Policy, which was
adopted in 2003, of a 7% reduction over
the next seven years and budgets have
been set for 2004 encompassing a
further 1% reduction.
The Group also has a rolling programme
of independent audit visits covering
property and health and safety risks.
These visits are targeted on the locations
which have the highest risk profile along
with a sample of other sites. Detailed
reports and recommendations are
produced after each visit which require
follow-up and implementation by local
management. This process is monitored
by the Group Management Committee.
Newsprint
Part of the industry’s agreement with the
Government, through its representative
body the Newspaper Society, is a
commitment to increase the target for
recycled newsprint. In 2002, the most
recently available figures, recycled paper
made up 65.1% (2001 - 63.5%) of the
raw material used in the production of 
UK newspapers. The target is for this
percentage to increase to 70% in 2006.
Newspapers cannot be recycled
indefinitely as the recycling process
breaks down the paper’s fibres until the
paper finally loses its strength. Therefore,
a continuing supply of virgin fibre will
always be needed. This virgin fibre comes
from renewable managed softwood
coniferous forests.
Waste Packaging
The Group adheres to the requirements of
the Producer Responsibility Obligations
(Packaging Waste) Regulations 1997. In
2003, as part of the Group’s continuing
efforts to meet its environmental
obligations, a project was initiated to
streamline and formalise the collection,
recycling and disposal of its waste
products. In January 2003 twelve
companies were employed to remove
process waste and by December 2003
this had been reduced to two. All non-
paper based waste is now handled by a
nationwide company which specialises in
this field. This company has 25-years
experience of our industry, has a proven
ability to remove, recycle and make safe
all of our waste products, has a
transparent audit trail, and is ISO 14001
accredited.
All paper-based waste products are
removed and recycled through a Group-
wide arrangement with one of our
newsprint suppliers. Companies with no
printing facility are only required to
account for any repackaging done prior 
to delivery to the customer.
Systems are in operation, including an
independent audit, to ensure that
verification takes place on a random 
basis each year.
Shareholders
Members of the Board (Executive and
Non-Executive) have met a number of
shareholders during the past year to
discuss Corporate Social Responsibility
matters and to address any questions
raised by shareholders.
2003 2002 %
Electricity
- kWh 47,558,773 48,195,619 -1.3
- print centres kWh/tonne 274.6 289.0 -5.0
Gas
- kWh 33,974,515 33,970,873 —
- print centres kWh/tonne 201.9 210.4 -4.0
Water
- m
3
118,751 125,309 -5.2
- print centres m
3
/tonne 0.66 0.75 -12.0
Corporate Social
RESPONSIBILITY Johnston Press  Annual Report and Accounts 2003
Part of Life
39
Directors’ Remuneration
REPORT
This report has been prepared in
accordance with the Directors’
Remuneration Report Regulations 
2002 which introduced new statutory
requirements for the disclosure of
directors’ remuneration in respect of
periods ending on or after 31 December
2002. The report also meets the relevant
requirements of the Listing Rules of the
Financial Services Authority and
describes how the Board has applied
the Principles of Good Governance
relating to directors’ remuneration. 
As required by the Regulations, a
resolution to approve the report will be
proposed at the Annual General Meeting
of the Company at which the financial
statements will be approved.
The Remuneration Committee
The Committee is chaired by Lord
Gordon of Strathblane, an independent
Non-Executive Director, and in 2003
comprised two other independent Non-
Executive Directors, Mr R G Parry and
Mr P E B Cawdron. In line with the
provisions of the Revised Combined
Code, in December 2003 Mr R G Parry
stepped down from the Committee and
was replaced by Mrs M A King. It meets
at least annually and as necessary.
During the period it met on four
occasions all before the composition of
the Committee changed. The Committee
is charged with recommending the
remuneration of the Chairman and
Executive Directors as well as changes
to employment conditions, the Executive
Share Option Schemes, Share Incentive
Plan, Share Matching Plan and to the
Save as you Earn Scheme, and the
introduction of any new incentive or
remuneration schemes. The Committee
is consulted on and notified of all senior
management appointments and related
remuneration. It is also consulted on
major organisational changes. 
None of the Committee has any
personal financial interest (other than as
shareholders), conflicts of interest arising
from cross-directorships or day-to-day
involvement in running the business. The
Committee makes recommendations to
the Board. Other directors attend
meetings when invited by the Committee
and the Company Secretary acts as
secretary to the Committee. No director
plays a part in any discussion about his
or her own remuneration. 
The Committee has appointed New
Bridge Street Consultants LLP to 
provide advice on structuring directors’
remuneration packages. New Bridge
Street Consultants LLP did not provide
any other services to the Company 
in 2003. 
The terms of reference of the Committee
are displayed on the Company’s website
in the Investor Relations Section.
Remuneration Policy
Executive remuneration packages are
prudently designed to attract, motivate
and retain directors of the high calibre
needed to maintain the Group’s strong
market position and to reward them for
enhancing value to shareholders. The
performance measurement of the
Executive Directors and key members of
senior management and the determination
of their annual remuneration packages are
undertaken by the Committee. The
remuneration of the Non-Executive
Directors other than the Chairman is
determined by the Board.
There are five main elements of the
remuneration package for Executive
Directors and senior management:
• Basic annual salary and benefits;
• Performance related bonuses;
• Pension arrangements; 
• Share options; and 
• Share Matching Plan.
Both Executive Directors have agreed to
a one-year rolling contract. The most
recently executed contracts for Mr T J
Bowdler and Mr S R Paterson are dated 
27 June 2003 and 24 May 2001
respectively. In the event of termination
both Executive Directors would be
entitled to loss of salary, benefits and
pensionable service for the notice
period, subject to mitigation where
appropriate. 
The appointments of Non-Executive
Directors of the Company are terminable at
will, subject to a three month notice period.
It is the Committee’s policy that any future
Board appointments would be made on
the same terms. Other than the Chairman,
all Non-Executive Directors on the Board in
2002, received letters of appointment
dated 25 January 2002, the Chairman on
27 June 2003 and the directors appointed
in 2003 on 25 April 2003.
The Company’s policy is that a significant
proportion of the remuneration of the
Executive Directors should be
performance related. As described below,
Executive Directors may earn annual
incentive payments together with the
benefits of participation in share schemes.
Executive Directors are entitled to accept
up to two Non-Executive appointments
outside the Company providing the
Chairman’s permission is obtained. Any
fees are retained by the director at the
discretion of the Remuneration
Committee. In addition, the Executive
Directors are entitled to accept any
positions connected with the newspaper
industry or any businesses in which the
Company holds an investment.
In 2003, both Executive Directors held
external non-executive posts and Mr T J
Bowdler and Mr S R Paterson received
£32,500 and £nil in fees respectively. 
Basic Salary
An Executive Director’s basic salary is
determined by the Committee prior to
the beginning of each year and when an
individual changes position or
responsibility. In deciding appropriate
levels, the Committee considers the
Group as a whole and relies on objective
research which gives up-to-date
information on a comparator group of
companies. Following the increase in
salaries after the acquisition of Regional
Independent Media Holdings Ltd in
2002, there were no further salary
increases during 2003. Executive
Directors’ contracts of service, which
include details of remuneration, will be
available for inspection at the Annual
General Meeting. Johnston Press  Annual Report and Accounts 2003
Part of Life
40
Directors’ Remuneration
REPORT
In addition to basic salary, the Executive
Directors receive certain benefits-in-kind,
principally a car or a cash buyout and
private medical insurance.
Performance Related Bonus
The Committee establishes the
objectives that must be met for each
financial year if a cash bonus is to be
paid. In setting the appropriate bonus
parameters the Committee, having taken
advice, takes into account the
Company’s internal budgets and
analysts’ expectations. The Committee
believes that this ties any incentive
payments to the interests of
shareholders. Half the bonus is payable
for reaching the profit target set by the
Board, on the recommendation of the
Remuneration Committee, with
additional sums payable for performance
above the target with a cap of 66 
2
/3%
and 60% of salary for Mr T J Bowdler
and Mr S R Paterson respectively. The
Board retains the discretion to recognise
performance outside this arrangement
where exceptional circumstances apply,
but any such discretion is restricted to a
total bonus of 25% of salary.
Share Options
The Company operates an Executive
Share Option Scheme and grants are
shown below and in note 27 to the
Accounts. Certain former and current
Directors have already participated in the
Scheme. The Remuneration Committee
reviews each grant of options to
subsidiary company Executives on the
recommendation of the Chief Executive.
All options are granted for nil
consideration. These options are only
capable of being exercised if the
compound real growth in the Group’s
headline earnings per share is between
3% to 5% depending on the level of the
grant, over a period of at least three
years. The Committee has decided that
there will be no retesting of performance
on any options granted after 1 January
2004. For options granted prior to 
31 December 2003, performance is
always tested from a fixed base and may
not be retested after the fifth anniversary
of the option grant. 
In order to exercise a grant above 0.5
times and above 1 times salary, the
growth in the Group’s headline earnings
per share must exceed the growth in the
retail price index by more than four and
five points per annum respectively.
The Company’s policy is to grant options
at the discretion of the Committee taking
into account individual performance. 
The policy is reviewed by the Committee
from time to time. Currently, the grant of
options to the Executive Directors and all
participants in the Scheme in any year is
based on a percentage of salary for
achieving a target and an increasing
allocation of share options for
performance above target up to a
maximum level. The maximum annual
grant for Mr T J Bowdler and Mr S R
Paterson under this policy is 1.5 times
and 1 times salary respectively.
The exercise price of the options granted
under the Executive Share Option
Scheme is equal to the market value of
the Company’s shares at the time when
the options are granted. 
The Company also operates a SAYE
Share Option Scheme for eligible
employees under which options may be
granted at a discount of up to 20% of
market value.
Shareholders at the 2003 Annual
General Meeting approved a Share
Matching Plan. It applies to the
Executive Directors and certain senior
executives. The participants are invited
to invest all or part of their annual bonus
in buying shares in the Company and
they have the prospect of receiving extra
matching shares after three years, paid
for by the Company. The matching ratio
ranges from 0.5 times to 1.5 times the
number of shares that could have been
acquired with the pre-tax equivalent of
the annual bonus invested, subject to
achieving compound real growth in the
Group’s headline earnings per share of
between 3% to 8% per annum over a
three year period. Mr T J Bowdler is
required by the Committee to invest at
least one third of his annual bonus into
the Scheme.
During 2003, the Committee introduced
a Share Incentive Plan (SIP) for all eligible
employees based on the scheme
approved by shareholders in 2000. The
SIP is in two parts, a Partnership
Scheme, which allows employees to
purchase shares in the Company on a
monthly basis in a tax efficient manner.
The second element is a Free Shares
Scheme, which provides employees who
have joined the Scheme with free
shares. The shares are held in a Trust,
administered by Halifax plc and after a
period of five years the shares will be
available to be held beneficially by
employees free of any tax and national
insurance. For Free Shares, the
Committee sets a minimum Group profit
target and a base fund to be utilised to
purchase shares in the Company.
Performance above the target generates
additional amounts payable into the fund
on a sliding scale up to a maximum
payout. In the case of 2003, the profit
achievement exceeded the maximum
target set by the Committee.
The Company Secretary is responsible for
ensuring the exercise criterion is met. The
performance criterion, which applies to all
Executive Directors to whom options
have been granted under the Schemes,
was chosen as it requires significant
improvement in financial performance
before options can be exercised.
Pension Arrangements
The Company operates two final salary
schemes, which are closed to new
members, and two defined contribution
schemes. The assets of the pension
schemes are totally separated from the
assets of the Company and of the Johnston Press  Annual Report and Accounts 2003
Part of Life
41
Group, and are invested by independent
fund managers. A professional
independent trustee and member
nominated trustees are appointed to
each of the pension schemes. A firm of
external actuaries and consultants act 
as advisors. Pension scheme members
receive a report from the trustees and 
a statement of their actuarial benefits
each year.
Mr T J Bowdler participates in the
Johnston Press Pension Scheme for a
pension of two-thirds of the earnings
cap. He also receives a contribution to
an unapproved scheme which is a total
cost to the company of 50% of salary
per annum including the tax cost,
equivalent to a contribution of 27% of
salary per annum. These pension
provisions were revised during 2002 and
in order to compensate Mr Bowdler for
the changes to his detriment, the Annual
General Meeting in that year approved
an award of 169,896 Restricted Shares
to Mr Bowdler. He is entitled to acquire a
proportion of these shares every six
months for a cost of £1 until 2009. No
performance conditions apply to the
Restricted Shares as they were granted
to replace reduced pension rights. Mr S
R Paterson does not participate in the
Johnston Press Pension Scheme and
the Company has agreed instead to
make a contribution equivalent to 20%
of his basic salary into his private
pension scheme. This contribution
increases to 25% from his 50th birthday.
Non-Executive Directors
All Non-Executive Directors have specific
terms of engagement and their
remuneration is determined by the Board
within the limits set by the Articles of
Association and based on independent
surveys of fees paid to non-executive
directors of similar companies. A copy of
the standard letter of appointment for
the Chairman and Non-Executive
Directors is available on the Company’s
website. The basic annual fee paid to
each Non-Executive Director is £30,000.
The Non-Executives receive further fees
for additional work performed for the
Company in respect of the chairing of
the Remuneration Committee and Audit
Committee, together with the
responsibilities as Chairman and Senior
Independent Director. Non-Executive
Directors cannot participate in any of the
Company’s Share Option Schemes and
are not eligible to join the Company’s
pension schemes.
2000 2001 2002 2003
Relative TSR
Performance Graph
The following graph shows the Company’s performance, measured by total shareholder return, compared with the performance of
the FTSE 350 and FTSE Media Sector also measured by total shareholder return. The FTSE 350 and FTSE Media Sector have
been selected for this comparison because the former measures the performance of stocks in general and the latter measures the
performance of companies operating in the same sector as the Group.
5 Year Return Index for Johnston Press as at 31 December 2003
Total Shareholder Return 
Johnston Press
Total Shareholder Return
FTSE 350 
Total Shareholder Return
FTSE Media Sector
1999 Johnston Press  Annual Report and Accounts 2003
Part of Life
42
Directors’ Remuneration - Audited Section
a) The total amounts for Directors’ remuneration and other benefits were as follows:
2003 2002
£’000 £’000
Emoluments 1,434 1,213
Gains on exercise of share options 297 247
Money purchase contributions 162 201
1,893 1,661
b) Directors’ Emoluments
Performance Total
Salary/Fees Taxable Benefits Related Bonus Emoluments
2003 2002 2003 2002 2003 2002 2003 2002
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Chairman
R G Parry 90 84 — — — — 90 84
Executive Directors
T J Bowdler 420 393 23 34 280 196 723 623
S R Paterson 250 233 1 — 150 117 401 350
Non-Executive Directors
Lord Gordon of Strathblane* 45 28 — — — — 45 28
H C M Johnston 30 28 — — — — 30 28
F P M Johnston 30 29 — 1 — — 30 30
Sir Harry Roche 45 42 — — — — 45 42
P E B Cawdron 30 28 — — — — 30 28
M A King 20 — — — — — 20 —
S J Waugh 20 — — — — — 20 —
980 865 24 35 430 313 1,434 1,213
Taxable benefits include car, telephone, life insurance and health insurance.
*Includes fees paid in 2003 relating to 2002.
c) Pension Benefits
The following Directors had accrued pension benefits under the Group’s defined benefit scheme:
Total Increase in Total Transfer value of Increase in 
Years of accrued accrued Transfer accrued total accrued value of
pensionable pension at pension value of pension at pension at pension 
service 31.12.02 during year increase 31.12.03 31.12.02 31.12.03 during year
£’000 £’000 £’000 £’000 £’000 £’000 £’000
T J Bowdler 10 45 4 30 49 481 697 216
H C M Johnston 12 13 3 4 16 180 221 41
Mr H C M Johnston was a member of the Group Pension Schemes before the introduction of the pensionable salary cap in May
1989. The pension arrangements for Mr T J Bowdler were varied in 2002 and the above figures now only represent his total final
salary benefit. Further details of his pension provision are explained on page 41. In addition to the above, the Group funded £112,000
and £50,000 into defined contribution schemes for Mr T J Bowdler and Mr S R Paterson respectively and both Executive Directors
have life cover of four times basic salary.
Directors’ Remuneration
REPORT Johnston Press  Annual Report and Accounts 2003
Part of Life
43
d) Share Option Schemes
Number of Gains on
options during the year Market Exercise
At At price 2003 2002
01.01.03 Granted Exercised 31.12.03 p £’000 £’000
Executive Share Option Scheme
T J Bowdler 599,883 169,777 111,050 658,610 433.5 195 182
S R Paterson 183,446 67,242 — 250,688
Savings Related Scheme
T J Bowdler 3,387 — — 3,387 20
S R Paterson 3,527 — — 3,527
Restricted Share Scheme
T J Bowdler 157,761 — 24,270 133,491 418.5 102 45
Share Matching Plan
T J Bowdler — 27,854 — 27,854
S R Paterson — 11,819 — 11,819
The above options are exercisable:
T J Bowdler
222,097 at a price of 283.66p between 27.10.2003 and 27.10.2010
148,809 at a price of 268.80p between 05.11.2004 and 05.11.2011
117,927 at a price of 356.50p between 24.04.2005 and 24.04.2012
169,777 at a price of 347.00p between 21.03.2006 and 21.03.2013
3,387 at a price of 279.00p between 01.11.2005 and 01.05.2006
The share options within the Restricted Share Scheme are exercisable six monthly between 16 May 2003 and 16 May 2009 in
equal tranches at a price of £1 on each exercise.
S R Paterson
137,418 at a price of 269.25p between 05.06.2004 and 05.06.2011
46,028 at a price of 356.50p between 24.04.2005 and 24.04.2012
67,242 at a price of 347.00p between 21.03.2006 and 21.03.2013
3,527 at a price of 274.65p between 01.11.2004 and 01.05.2005
The options granted within the Share Matching Plan are exercisable for a nominal total payment of £1 between 30 May 2006 and
29 May 2013. The matching factor ranges from 0.5 times to a maximum of 1.5 times the number of shares granted in line with the
performance criteria outlined in the Directors’ Remuneration Report. The Company’s share price on the date that the Matching
Shares were granted was 399.5p. 
The options granted during the year, other than those in the Restricted Share Scheme are only exercisable subject to the level of
achievement of the performance criteria denoted in the Directors’ Remuneration Report. Options exercisable from 2004 onwards
are subject to the same performance criteria and those pre 2004 require a growth in the Group’s headline earnings per share
greater than the growth in the retail price index plus three percentage points per annum over a period of at least three years.
The middle market price of the Ordinary Shares was as follows:
On 1 January 2003 368.5p Highest price during year 469.5p
On 31 December 2003 465.75p Lowest price during year 320.5p
This report was approved by the Board of Directors on 17 March 2004 and signed on its behalf by: 
Lord Gordon of Strathblane Johnston Press  Annual Report and Accounts 2003
Part of Life
44
Directors’
REPORT Y ear to 31 December 2003 
Principal Activities
The Group’s main activities are the publication and printing of local and regional weekly, evening and morning newspapers, both
paid-for and free, specialist print publications, together with associated websites.
Review of Business
The results for the year 2003 are set out in the Group Profit and Loss Account on page 48. The Group profit for the year before
taxation was £127,952,000 (2002 - £92,725,000) which results in a retained profit transferred to Reserves of £72,515,000
(2002 - £50,400,000). Details of the business activities during the year are set out in the Chief Executive’s Review and in the
Financial Review.
Dividends
The Directors recommend a final dividend of 4p per share making a total dividend of 6p per share for the year. Subject to approval
by members the final dividend will be paid on 14 May 2004 to those Ordinary Shareholders on the register at 23 April 2004.
Share Capital
Details of Share Capital are shown in note 21.
Environmental Policy
The Board acknowledges that environmental protection is one of the Company’s business responsibilities. It aims for a continuous
improvement in the Company’s environmental performance and to comply with all relevant regulations. Following an internal audit
and an assessment by external advisors, the Group has now put in place a documented environmental policy to monitor
performance and to take action where appropriate. Further details of this policy are provided in the Corporate Social Responsibility
statement.
Donations
Charitable donations amounted to £159,000 (2002 - £130,000). There were no payments for political purposes.
Supplier Payment Policy
The Company’s policy is to settle terms of payment with suppliers when agreeing the terms of each transaction, ensuring that
suppliers are made aware of the terms of payment, and to abide by the terms of payment. Trade creditors of the Company at 
31 December 2003 were equivalent to 17 days purchases (2002 - 14 days), based on the average daily amount invoiced by
suppliers during the year.
Directors and their Interests
The Board has a policy that each director will retire voluntarily every three years, to the extent that he is not required so to do, 
with that or greater frequency, under the Articles of Association. Under the Company’s Articles of Association, Mr H C M Johnston,
Mr S R Paterson and Sir Harry Roche are due to retire by rotation at this year’s Annual General Meeting. Sir Harry Roche, who
joined the Board in June 1993, will retire at the Annual General Meeting in 2004 and is not seeking re-election. Mr H C M Johnston
and Mr S R Paterson being eligible, offer themselves for re-election. Mrs M A King and Mr S J Waugh have been appointed to the
Board since the last Annual General Meeting and, in accordance with the Articles of Association, will retire and seek election at the
Annual General Meeting.  Johnston Press  Annual Report and Accounts 2003
Part of Life
45
The Directors during the year and their interests in the share capital of the Company were as follows:
Ordinary Shares of 10p each
31 December 2003 31 December 2002
R G Parry 107,807 107,807
T J Bowdler 256,819 195,393
S R Paterson 14,173 7,000
F P M Johnston 12,717,696 12,717,696
H C M Johnston 12,200,000 12,200,000
Sir Harry Roche 64,066 64,066
Lord Gordon of Strathblane 47,310 47,310
P E B Cawdron 9,800 9,800
In addition to the shareholdings shown above, which are all held beneficially, Mr T J Bowdler and Mr S R Paterson hold an interest
in 197,256 shares by virtue of their status as potential beneficiaries of the Johnston Press Employee Share Trust.
Since 31 December 2003, Mr T J Bowdler and Mr S R Paterson have each purchased 51 shares through the Share Incentive Plan.
No Director had any material interest in any contract, other than a service contract, with the Company or any subsidiary at any
time during the year.
Substantial Shareholdings
So far as the Directors are aware the only holders of 3% or more of the Ordinary Share Capital of the Company and any other
major shareholders, other than Directors, are as follows:
No of Ordinary Shares of 10p each
J C M Johnston 6,380,635
The trustees of H C M Johnston’s children’s trusts 11,200,000
M F Johnston 6,900,094
R T Johnston 6,959,491
CGNU plc and Morley Fund Management Limited 10,520,310
FMR Corp 14,283,656
Prudential 9,280,886
Lloyds TSB Group of Companies 10,768,583
Barclays PLC 8,541,411
Close Company Status
So far as the Directors are aware the Company is not a close company for taxation purposes.
Directors’ Liability 
As permitted by the Companies Act 1985, the Company has insurance cover for the Directors against liabilities in relation to 
the Group. Johnston Press  Annual Report and Accounts 2003
Part of Life
46
Special Business
Four resolutions are set out under Special Business in the notice of this year’s Annual General Meeting. The purpose of the first,
an Ordinary Resolution, is to renew the Directors’ authority to allot shares up to a maximum nominal amount of £9,466,496
representing 33.33% of the existing issued share capital. The Directors have, however, no current intention of exercising that
authority.
The second, a Special Resolution, relates to the limited power given to the Directors to allot equity securities for cash representing
up to 5% of the existing issued ordinary share capital, without the statutory pre-emption provisions of the Companies Act 1985
applying. This power, which accords with normal practice, expires on the date of this year’s Annual General Meeting. The purpose
of the Special Resolution is to renew this power for a further year.
The third item of special business is the renewal of the authority of the Company to purchase its own ordinary shares as permitted
under its Articles of Association. This resolution will be proposed as a special resolution seeking authority to make such purchases
in the market. The Directors have no immediate intention of using such authority and would do so only when they consider it to be
in the best interests of shareholders generally and an improvement in earnings per share would result. Prior to 1 December 2003,
any shares purchased in this way would have been cancelled and the number of shares in issue reduced accordingly. However, the
Companies (Acquisition of Own Shares) (Treasury Shares) Regulations 2003 have altered the position to permit shares purchased
by the Company out of distributable profits to be held as Treasury Shares which may be cancelled, sold for cash or transferred for
the purposes of the Company’s employee share schemes.
This Resolution specifies the maximum number of ordinary shares which may be purchased (representing approximately 10% of
the Company’s existing issued ordinary share capital) and the minimum and maximum prices at which they may be bought,
reflecting the requirements of the Companies Act 1985 and the Financial Services Authority.
The final resolution is a Special Resolution to consider and, if thought fit, to approve the changes to the Company’s Articles of
Association as outlined in the circular to shareholders dated 17 March 2004.
Auditors
On 1 August 2003, Deloitte & Touche, the Company’s auditors transferred their business to Deloitte & Touche LLP , a limited liability
partnership incorporated under the Limited Liability Partnerships Act 2000. The Company’s consent has been given to treating the
appointment of Deloitte & Touche as extending to Deloitte & Touche LLP with effect from 1 August 2003 under the provisions of
section 26(5) of the Companies Act 1989. A resolution to re-appoint Deloitte & Touche LLP as the Company’s auditors will be
proposed at the forthcoming Annual General Meeting.
By Order of the Board
P R Cooper, ACA
Secretary
53 Manor Place
Edinburgh
EH3 7EG
17 March 2004
Directors’
REPORT Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
47
Independent
AUDITORS’ REPORT
To the members of Johnston Press plc
We have audited the financial statements of Johnston Press plc for the year ended 31 December 2003 which comprise the profit and
loss account, the balance sheets, the cash flow statement, the statement of total recognised gains and losses, the note of historical cost
profits and losses, the reconciliation of movements in shareholders’ funds and the related notes 1 to 27. These financial statements have
been prepared under the accounting policies set out therein. We have also audited the information in the part of the Directors’
Remuneration Report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit
work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an
auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As described in the statement of directors’ responsibilities, the Company’s directors are responsible for the preparation of the financial
statements in accordance with applicable United Kingdom law and accounting standards. They are also responsible for the preparation
of the other information contained in the annual report including the Directors’ Remuneration Report. Our responsibility is to audit the
financial statements and the part of the Directors’ Remuneration Report described as having been audited in accordance with relevant
United Kingdom legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and
the part of the Directors’ Remuneration Report described as having been audited have been properly prepared in accordance with the
Companies Act 1985. We also report to you if, in our opinion, the Directors’ Report is not consistent with the financial statements, if the
Company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit,
or if information specified by law regarding directors’ remuneration and transactions with the company and other members of the Group
is not disclosed.
We review whether the Corporate Governance statement reflects the Company’s compliance with the seven provisions of the Combined
Code issued in June 1998 specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not.
We are not required to consider whether the Board’s statements on internal control cover all risks and controls, or form an opinion on the
effectiveness of the Group’s Corporate Governance procedures or its risk and control procedures.
We read the Directors’ Report and the other information contained in the annual report for the above year as described in the contents
section including the unaudited part of the Directors’ Remuneration Report and consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with United Kingdom auditing standards issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements and the part of the
Directors’ Remuneration Report described as having been audited. It also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the financial statements and of whether the accounting policies are appropriate
to the circumstances of the Company and the Group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements and the part of the Directors’ Remuneration
Report described as having been audited are free from material misstatement, whether caused by fraud or other irregularity or error. In
forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements and the part of
the Directors’ Remuneration Report described as having been audited.
Opinion
In our opinion: 
• the financial statements give a true and fair view of the state of affairs of the Company and the Group as at 31 December 2003 and
of the profit of the Group for the year then ended; and
• the financial statements and the part of the Directors’ Remuneration Report described as having been audited have been properly
prepared in accordance with the Companies Act 1985.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Edinburgh
17 March 2004 Johnston Press  Annual Report and Accounts 2003
Part of Life
48
2003 2002
Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Turnover
Continuing operations 491,843 — 491,843 426,815 — 426,815
Discontinued operations ——— 1,579 — 1,579
Total turnover 2 491,843 — 491,843 428,394 — 428,394
Cost of sales 3 (234,225) — (234,225) (204,129) — (204,129)
Gross profit 257,618 — 257,618 224,265 — 224,265
Other operating expenses (net) 3 (94,585) (2,452) (97,037) (93,048) (1,747) (94,795)
Operating profit 4 163,033 (2,452) 160,581 131,217 (1,747) 129,470
Continuing operations 163,033 (2,452) 160,581 130,983 (1,747) 129,236
Discontinued operations ——— 234 — 234
Operating profit 163,033 (2,452) 160,581 131,217 (1,747) 129,470
Share of associates’ operating profit 581 — 581 401 — 401
163,614 (2,452) 161,162 131,618 (1,747) 129,871
Exceptional items 
- fundamental reorganisation 5 ——— — (4,438) (4,438)
Profit on ordinary activities 
before interest and taxation 163,614 (2,452) 161,162 131,618 (6,185) 125,433
Net interest 6 (32,485) (725) (33,210) (30,901) (1,807) (32,708)
Profit on ordinary activities before taxation 131,129 (3,177) 127,952 100,717 (7,992) 92,725
Taxation on profit on ordinary activities 9 (39,217) 953 (38,264) (29,259) 2,398 (26,861)
Profit for the financial year 91,912 (2,224) 89,688 71,458 (5,594) 65,864
Dividends on equity and non-equity shares 10 (17,173) — (17,173) (15,464) — (15,464)
Retained profit for year 22 74,739 (2,224) 72,515 55,994 (5,594) 50,400
Earnings per share 11
Headline 32.36p 26.75p
Headline diluted 32.13p 26.61p
Basic 31.57p 24.65p
Diluted 31.35p 24.52p
A statement of movements on reserves is given in note 22.
The accompanying notes are an integral part of these accounts.
Group Profit and Loss
ACCOUNT Y ear to 31 December 2003 Johnston Press  Annual Report and Accounts 2003
Part of Life
49
2003 2002
Notes £’000 £’000
Profit for the financial year 89,688 65,864
Revaluation deficit — (57)
Total recognised gains and losses for the financial year 89,688 65,807
2003 2002
£’000 £’000
Restated
Profit for the financial year 89,688 65,864
Dividends (17,173) (15,464)
Other recognised gains and losses relating to the year (net) — (57)
Movement in own shares 62 —
New share capital subscribed, including share premium 1,390 223,145
Net increase in shareholders’ funds 73,967 273,488
Opening shareholders’ funds 22b 560,965 287,477
Closing shareholders’ funds 634,932 560,965
2003 2002
£’000 £’000
Reported profit on ordinary activities before taxation 127,952 92,725
Difference between historical cost depreciation charge and the actual 
depreciation charge for the year calculated on the revalued amount 85 87
Historical cost profit on ordinary activities before taxation 128,037 92,812
Historical cost profit for the year retained after taxation
and dividends 72,600 50,487
The accompanying notes are an integral part of these accounts.
Group Statement of Total Recognised
GAINS AND LOSSES Y ear to 31 December 2003
Group Reconciliation of Movements in
SHAREHOLDERS’ FUNDS Y ear to 31 December 2003
Group Note of Historical Cost
PROFITS AND LOSSES Y ear to 31 December 2003 Johnston Press  Annual Report and Accounts 2003
Part of Life
50
2003 2002
Notes £’000 £’000
Restated
(note 22b)
Fixed assets 
Intangible 12 927,557 927,557
Tangible 13 156,972 154,084
Investments 14 3,980 4,663
1,088,509 1,086,304
Current assets
Stocks 15 2,961 2,703
Debtors - due within one year 16 59,734 54,645
- due after more than one year 16 13,984 7,062
Cash at bank and in hand 23g 9,944 10,735
86,623 75,145
Creditors: amounts falling due within one year 17 (151,123) (121,973)
Net current liabilities (64,500) (46,828)
Total assets less current liabilities 1,024,009 1,039,476
Creditors: amounts falling due after more than one year 18 (372,750) (472,559)
Provisions for liabilities and charges 20 (16,327) (5,952)
Net assets 2 634,932 560,965
Capital and reserves
Called-up share capital
Equity 21 28,399 28,339
Non-equity 21 1,106 1,106
29,505 29,445
Reserves - equity 22 605,427 531,520
Shareholders’ funds 634,932 560,965
The accounts were approved by the Board of Directors on 17 March 2004 and were signed on its behalf by:
T J Bowdler, Chief Executive S R Paterson, Finance Director
The accompanying notes are an integral part of these accounts.
Group
BALANCE SHEET As at 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
51
2003 2002
Notes £’000 £’000
Net cash inflow from operating activities 23a 167,573 151,457
Returns on investments and servicing of finance 23b (30,849) (33,466)
Taxation 23c (23,548) (17,713)
Capital expenditure and financial investment 23d (18,291) (14,218)
Free cash flow 94,885 86,060
Acquisitions and disposals 23e 608 (567,726)
Equity dividends paid (15,863) (11,654)
Cash inflow/(outflow) before financing 79,630 (493,320)
Financing 23f (92,241) 497,582
(Decrease)/increase in cash in the year 23g (12,611) 4,262
The accompanying notes are an integral part of these accounts.
Group
CASH FLOW STATEMENT Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
52
2003 2002
Notes £’000 £’000
Restated
(note 22b)
Fixed Assets
Tangible 13 2,259 2,297
Investments 14 647,394 648,106
649,653 650,403
Current assets
Stocks 15 314 234
Debtors - due within one year 16 114,052 130,273
- due after more than one year 16 440,466 440,474
Cash at bank and in hand 1,740 1,724
556,572 572,705
Creditors: amounts falling due within one year 17 (131,124) (121,035)
Net current assets 425,448 451,670
Total assets less current liabilities 1,075,101 1,102,073
Creditors: amounts falling due after more than one year 18 (366,068) (460,091)
Provisions for liabilities and charges 20 (800) (351)
Net assets 708,233 641,631
Capital and reserves
Called-up share capital
Equity 21 28,399 28,339
Non-equity 21 1,106 1,106
29,505 29,445
Reserves - equity 22 678,728 612,186
Shareholders’ funds 708,233 641,631
The accounts were approved by the Board of Directors on 17 March 2004 and were signed on its behalf by:
T J Bowdler, Chief Executive S R Paterson, Finance Director
The accompanying notes are an integral part of these accounts.
Company
BALANCE SHEET As at 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
53
1. Accounting Policies
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets, and
using applicable accounting standards. No Profit and Loss Account is presented for the Parent Company as permitted by Section
230 of the Companies Act 1985. Of the Group profit for the financial year, £82,323,000 (2002 - £89,004,000) is dealt with in the
accounts of the Parent Company.
Basis of consolidation
The Group accounts consolidate the accounts of Johnston Press plc and all its subsidiaries made up to 31 December each year.
The Group has adopted the acquisition method of accounting. Under this method the results of subsidiary undertakings acquired
or disposed of during the year are included in the Group Profit and Loss Account from the date of acquisition or up to the date of
disposal. In accordance with FRS10, as from 1 January 1998, goodwill is capitalised. Goodwill arising on acquisitions in the year
ended 31 December 1997 and earlier periods was written off to reserves in accordance with the accounting standard then in force.
As permitted by the current accounting standard the goodwill previously written off to reserves has not been reinstated in the
balance sheet. On disposal or closure of a previously acquired business, the attributable amount of goodwill previously written off
to reserves is included in determining the profit or loss on disposal.
Publishing titles 
Publishing titles separately acquired after 1 January 1989 are stated in the Balance Sheet at cost. All publishing titles owned by
subsidiaries acquired after 1 January 1996 are included in the Balance Sheet at Directors’ valuation. The Company has taken the
view that these titles have no finite life, and in accordance with the provisions of FRS10 and FRS11 annual impairment tests are
undertaken to determine any diminution in value.
Tangible fixed assets
Tangible fixed assets are shown at cost or valuation, net of depreciation and any provision for impairment, as set out in note 13.
Depreciation is provided on all tangible fixed assets at varying rates calculated to write off cost or valuation over their useful lives. 
The principal rates employed are:
Heritable and freehold property (excluding land) 2
1
/2% on written down value
Leasehold land and buildings equal annual instalments over term of lease
Web offset presses 5% straight line basis
Pre-press systems 20% straight line basis
Other plant and machinery 15% on written down value
6
2
/3%, 10%, 20% and 33
1
/3% straight line basis
Motor vehicles 25% straight line basis
25% on written down value
Revaluation of properties
The Group has adopted the transitional provisions of FRS15 in retaining previously revalued book amounts. The valuations carried out
in 1996 and 1997 will no longer be updated. Where depreciation charges were increased following a revaluation, an amount equal to
the increase is transferred annually from the revaluation reserve to the Profit and Loss Account as a movement on reserves. On the
disposal or recognition of a provision for impairment of a revalued fixed asset, any related balance remaining in the revaluation reserve
is also transferred to the Profit and Loss Account as a movement on reserves.
Fixed asset investments
Listed investments are shown at current market valuation. Upward revaluations are credited to the revaluation reserve. Downward
revaluations in excess of any previous upward revaluation are taken to the Profit and Loss Account.
Other fixed asset investments are shown at cost less provisions for impairment except for investments in associated undertakings.
In the Group Accounts, investments in associated undertakings are accounted for using the equity method. The Group Accounts
include the Group’s share of the profit and net assets of associates.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
54
1. Accounting Policies (continued)
Stocks
Stocks are stated at the lower of cost and net realisable value as follows:
Cost incurred in bringing materials to their present location and condition comprises; (a) raw materials and goods for resale at
purchase cost on a first-in first-out basis; and (b) work in progress at cost of direct materials, labour and certain overheads.
Net realisable value comprises selling price less any further costs expected to be incurred to completion and disposal.
Leasing
Assets held under finance leases and other similar contracts, which confer rights and obligations similar to those attached to
owned assets, are capitalised as tangible fixed assets and are depreciated over the shorter of the lease terms and their useful lives.
The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and
Loss Account over the period of the leases to produce a constant rate of charge on the balance of capital repayments
outstanding.
Rentals under operating leases are charged on a straight line basis over the lease term, even if the payments are not made on
such a basis.
Turnover
Turnover represents net invoiced sales to customers excluding value added tax.
Taxation
Corporation tax payable is provided on taxable profits at the current rate.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at
the balance sheet date. Timing differences are differences between the Group’s taxable profits and its results as stated in the
financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they
are recognised in the financial statements.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be
regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing
differences can be deducted.
Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell
the revalued assets and the gain or loss expected to arise on sale has been recognised in the financial statements. Neither is
deferred tax recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being
charged to tax only if and when the replacement assets are sold.
Finance costs
Finance costs of debt are recognised in the Profit and Loss Account over the term of such instruments at a constant rate on the
carrying amount. When a debt facility is re-financed, the finance costs of the old facility are written off to the Profit and Loss Account.
The Group uses derivative financial instruments only to reduce exposure to interest rate and exchange rate movements. The Group
does not hold or issue derivative financial instruments for speculative purposes.
For an interest or currency rate swap to be treated as a hedge the instrument must be related to actual assets or liabilities or a
probable commitment, and must change the nature of the interest rate by converting a fixed rate to a variable rate or vice versa.
Interest differentials under these swaps are recognised by adjusting net interest payable over the period of the contract.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
55
Development grants
Development grants are credited to the Profit and Loss Account by equal instalments over 10 years.
Pension costs
The Group provides pensions to employees through various schemes.
The expected cost of pensions in respect of the Group’s defined benefit pension schemes is charged to the Profit and Loss Account
so as to spread the cost of pensions over the service lives of employees in the schemes. Variations from the regular cost are spread
over the expected remaining service lives of current employees in the schemes. The pension cost is assessed in accordance with
the advice of qualified actuaries. The Group has elected to adopt the transitional disclosure requirements of FRS17.
The cost of contributions to the Group’s money purchase scheme is charged to the Profit and Loss Account when incurred. 
As required by SSAP 24, provision has been made for unfunded pension commitments, and payments to pensioners in respect of
these commitments are charged to the provision.
Further information regarding the Group pension schemes is provided in notes 20 and 25.
2. Turnover/Net Assets Analysis
Turnover Net Assets
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Restated
a) By activity (note 22b)
Continuing operations
Newspapers and contract printing
Continuing operations 491,843 426,815 634,932 560,965
Discontinued operations — 1,579 — —
491,843 428,394 634,932 560,965
b) By location
All the Turnover and Net Assets relate to the United Kingdom.
Turnover for newspapers relates to 52-week periods ended 31 December 2003 and 31 December 2002.
There is no significant difference between the geographical origin and destination of turnover. Johnston Press  Annual Report and Accounts 2003
Part of Life
56
3. Cost of Sales and Other Operating Expenses (net)
Continuing Discontinued
operations operations Total
£’000 £’000 £’000
a) Cost of sales
2003 234,225 — 234,225
2002 203,226 903 204,129
b) Other operating expenses (net)
2003
Distribution costs 37,490 — 37,490
Administration expenses (inclusive of exceptional items) 59,547 — 59,547
97,037 — 97,037
2002
Distribution costs 34,391 166 34,557
Administration expenses (inclusive of exceptional items) 59,962 276 60,238
94,353 442 94,795
c) Operating exceptionals included within administration expenses
2003
Restructuring of the Group’s operations 2,790 — 2,790
Profit on sale of business (338) — (338)
2,452 — 2,452
2002
Restructuring of the Group’s operations 1,045 — 1,045
Other restructuring costs 996 — 996
Reduction in unfunded pension provision (294) — (294)
1,747 — 1,747
The discontinued operations in 2002 relate to the disposal of Galloway Gazette, Stornoway Gazette and Writers News.
4. Operating Profit
2003 2002
a) By activity £’000 £’000
Continuing operations
Newspapers and contract printing
Continuing operations 160,581 129,236
Discontinued operations — 234
Total operating profit 160,581 129,470
b) By location
All the operating profit is derived from the United Kingdom.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
57
2003 2002
£’000 £’000
c) Operating profit is shown after charging or (crediting):
Depreciation of tangible fixed assets (note 13) 18,016 16,718
Loss on disposal of tangible fixed assets 31 81
Redundancy costs 3,556 2,847
Staff costs (note 7) 155,094 139,094
Auditors’ remuneration:
Audit services (Company - £30,000) 230 260
Development grant amortisation — (14)
Operating lease charges:
Plant and machinery 1,903 1,741
Other 2,978 2,635
In addition to the auditors’ remuneration shown above, the auditors received the following fees for non audit services.
Acquisitions and disposals 55 398
Audit of circulation and distribution figures of the Group’s newspaper titles 209 145
Taxation services 168 53
432 596
5. Exceptional Items Reported after Operating Profit
2003 2002
£’000 £’000
Fundamental reorganisation following acquisition of new titles — 4,438
The aggregate effect of the exceptional items on the amount charged to the Profit and Loss Account for taxation was to reduce
the 2002 charge by £1,331,000.
6. Net Interest
2003 2002
£’000 £’000
Investment income:
Income from fixed asset investments 806 700
Interest receivable 308 337
Total interest receivable and similar income 1,114 1,037
Interest payable and similar charges:
On bank loans and overdrafts 30,978 29,031
On loan stock 1,271 1,719
Amortisation of term debt issue costs 1,350 1,188
33,599 31,938
Exceptional items:
Write off term debt issue costs of previous bank facility — 1,456
Provision for impairment of investment in Mirago 725 351
Total interest payable and similar charges 34,324 33,745
Net interest 33,210 32,708 Johnston Press  Annual Report and Accounts 2003
Part of Life
58
7. Employees
The average monthly number of employees (including executive directors) was:
2003 2002
No. No.
Newspaper and contract printing:
Editorial and photographic 1,981 1,845
Sales and distribution 3,312 3,068
Production 1,702 1,568
Administration 777 886
7,772 7,367
£’000 £’000
Staff costs (including Directors’ remuneration): 
Wages and salaries 134,535 122,252
Social security costs 11,969 10,007
Other pension costs (note 25) 8,590 6,835
155,094 139,094
8. Directors’ Emoluments
Full details of the Directors’ emoluments, pension benefits and share options are included in the Directors’ Remuneration Report
on pages 39 to 43.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
59
9. Taxation
The taxation charge which is based on the profit for the year is made up as follows:
2003 2002
£’000 £’000
Corporation tax 28,689 17,399
Tax on profit of associated undertakings 126 139
Taxation (over)/under provision in previous years (682) 27
Deferred taxation (note 20) 10,131 9,296
38,264 26,861
The differences between the total current tax shown above and the amount calculated by applying the standard rate of UK
corporation tax to the profit before tax are as follows:
2003 2002
£’000 £’000
Profit on ordinary activities before tax 127,952 92,725
Less: share of associates’ profit before tax 581 401
Group profit on ordinary activities before tax 127,371 92,324
Tax on Group profit on ordinary activities at standard UK corporation tax rate of 30% (2002 - 30%) 38,211 27,697
Effects of:
Expenses not deductible for tax purposes 352 120
Capital allowances in excess of depreciation (1,264) (550)
Investment income (242) (210)
Other timing differences (8,368) (9,658)
Group current tax charge for period 28,689 17,399
The Group earns its profits primarily in the UK, therefore the tax rate used for tax on profit on ordinary activities is the standard 
rate for UK corporation tax, currently 30%.
The amount of deferred tax that has not been provided on fixed assets subject to rollover relief is £1,224,000 (2002 - £1,165,000).
At present, it is not envisaged that any tax will become payable in the foreseeable future. Johnston Press  Annual Report and Accounts 2003
Part of Life
60
10. Dividends
2003 2002
Non-Equity: £’000 £’000
Preference Dividends 
13.75% Cumulative Preference Shares paid 104 104
13.75% “A” Preference Shares paid 48 48
Equity:
Ordinary Dividends
Interim of 2p (2002 - 1.8p) paid on 7 November 2003 5,661 5,110
Proposed final of 4p (2002 - 3.6p) payable on 14 May 2004 11,360 10,202
17,173 15,464
11. Earnings per Share
The calculations of earnings per share are based on the following profits and weighted average number of shares:
Headline Basic/Diluted
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Profit for the financial year 89,688 65,864 89,688 65,864
Exceptional items 3,177 7,992 — —
Tax effect of exceptional items (953) (2,398) — —
Preference dividends (152) (152) (152) (152)
91,760 71,306 89,536 65,712
2003 2002
No. of shares No. of shares
Weighted average number of shares
For headline/basic earnings per share 283,576,312 266,532,825
Exercise of share options 2,052,389 1,445,334
For diluted earnings per share 285,628,701 267,978,159
Headline figures are presented to show the effect of excluding exceptional items from earnings per share.
12. Intangible Fixed Assets
Group Company
£’000 £’000
Publishing titles:
Cost and net book value 
At 1 January 2003 and 31 December 2003 927,557 —
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
61
13. Tangible Fixed Assets
Freehold land Leasehold Plant and Motor
Group and buildings buildings machinery vehicles Total
£’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 January 2003 50,558 4,629 151,088 12,970 219,245
Additions 641 18 16,614 4,677 21,950
Disposals (448) — (172) (436) (1,056)
At 31 December 2003 50,751 4,647 167,530 17,211 240,139
Depreciation
At 1 January 2003 3,457 728 54,506 6,470 65,161
Disposals — — — (10) (10)
Charge for the year 886 146 14,499 2,485 18,016
At 31 December 2003 4,343 874 69,005 8,945 83,167
Net book value
At 31 December 2003 46,408 3,773 98,525 8,266 156,972
At 31 December 2002 47,101 3,901 96,582 6,500 154,084
Freehold land amounting to £11,991,000 (2002 - £12,131,290) has not been depreciated.
Freehold Leasehold Plant and Motor
Company buildings buildings machinery vehicles Total
£’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 January 2003 1,960 400 354 107 2,821
Additions — — 83 15 98
Transfers — — — (18) (18)
At 31 December 2003 1,960 400 437 104 2,901
Depreciation
At 1 January 2003 233 47 202 42 524
Transfers — — — (9) (9)
Charge for year 43 9 51 24 127
At 31 December 2003 276 56 253 57 642
Net book value
At 31 December 2003 1,684 344 184 47 2,259
At 31 December 2002 1,727 353 152 65 2,297 Johnston Press  Annual Report and Accounts 2003
Part of Life
62
13. Tangible Fixed Assets (continued)
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
a) Freehold land and buildings comprise:
At valuation 37,594 37,926 1,960 1,960
At cost 13,157 12,632 — —
50,751 50,558 1,960 1,960
Professional valuations were carried out by members of the Royal Institute of Chartered Surveyors on certain of the Group’s
buildings at 31 December 1997. Valuations were also carried out at 31 December 1996 by professional valuers on those 
properties acquired from Emap plc and Newsquest Media Group Ltd. The valuations were prepared on an existing use basis. 
The freehold properties acquired from Regional Independent Media Holdings Ltd were valued by the directors following advice 
from a firm of Chartered Surveyors as part of the fair value accounting.
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
b) Historical cost figures for freehold buildings are:
Cost 47,838 47,313 1,772 1,772
Depreciation (4,596) (3,771) (393) (358)
43,242 43,542 1,379 1,414
Group Company
£’000 £’000
c) Assets in the course of construction
Plant and machinery
At 1 January 2003 984 —
Movement in the year 2,847 —
At 31 December 2003 3,831 —
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
63
14. Fixed Asset Investments
Associated Listed Unlisted Own
undertakings investments investments shares Total
Group £’000 £’000 £’000 £’000 £’000
Cost
At 1 January 2003 - as reported 281 271 4,613 598 5,763
Prior year adjustment (see note 22b) — — — (598) (598)
As restated 281 271 4,613 — 5,165
Additions — — 13 — 13
Reallocation 132 — (132) — —
Share of profits for the year 455 — — — 455
Dividends received (352) — — — (352)
Transfers to participants —————
At 31 December 2003 516 271 4,494 — 5,281
Provisions for impairment
At 1 January 2003 - as reported — 151 351 66 568
Prior year adjustment (see note 22b) — — — (66) (66)
As restated — 151 351 — 502
Written off — 74 725 — 799
At 31 December 2003 — 225 1,076 — 1,301
Net book value at 31 December 2003 516 46 3,418 — 3,980
Net book value at 31 December 2002 281 120 4,262 — 4,663
Subsidiary Unlisted Own
undertakings investments shares Total
Company £’000 £’000 £’000 £’000
Cost
At 1 January 2003 - as reported 644,944 3,513 598 649,055
Prior year adjustment (see note 22b) — — (598) (598)
As restated 644,944 3,513 — 648,457
Additions — 13 — 13
At 31 December 2003 644,944 3,526 — 648,470
Provisions for impairment
At 1 January 2003 - as reported — 351 66 417
Prior year adjustment (see note 22b) — — (66) (66)
As restated — 351 — 351
Written off — 725 — 725
At 31 December 2003 — 1,076 — 1,076
Net book value at 31 December 2003 644,944 2,450 — 647,394
Net book value at 31 December 2002 644,944 3,162 — 648,106
The aggregate market value of the listed investments for the Group at 31 December 2003 was £46,000 (2002 - £120,000). Johnston Press  Annual Report and Accounts 2003
Part of Life
64
14. Fixed Asset Investments (continued)
The Group holds more than 20% of the equity of the following companies:
Country of Proportion
Name of company incorporation held Nature of business
Associated undertakings
*Emcliffe Ltd England 50% Newspaper publishers
*Classified Periodicals Ltd England 50% Newspaper publishers
*Free Admart Ltd England 25% Newspaper publishers
*Two Boroughs Radio Ltd England 33% Local radio station
Subsidiary undertakings
Johnston Publishing Ltd England 100% Newspaper publishers
Johnston (Falkirk) Ltd Scotland 100% Newspaper publishers and printers
Strachan & Livingston Ltd Scotland 100% Newspaper publishers
Wilfred Edmunds Ltd England 100% Newspaper publishers
North Notts Newspapers Ltd England 100% Newspaper publishers
Yorkshire Weekly Newspaper Group Ltd England 100% Newspaper publishers and printers
Sussex Newspapers Ltd England 100% Newspaper publishers
T R Beckett Ltd England 100% Newspaper publishers 
*Halifax Courier Ltd England 100% Newspaper publishers and printers
*Isle of Man Newspapers Ltd Isle of Man 100% Newspaper publishers and printers
South Yorkshire Newspapers Ltd England 100% Newspaper publishers
Yorkshire Regional Newspapers Ltd England 100% Newspaper publishers and printers
*East Midlands Newspapers Ltd England 100% Newspaper publishers
Welland Valley Newspapers Ltd England 100% Newspaper publishers
Anglia Newspapers Ltd England 100% Newspaper publishers
Northamptonshire Newspapers Ltd England 100% Newspaper publishers
Central Counties Newspapers Ltd England 100% Newspaper publishers
Premier Newspapers Ltd England 100% Newspaper publishers
Bedfordshire Newspapers Ltd England 100% Newspaper publishers
Peterboro’ Web Ltd England 100% Contract printers
*Northampton Web Ltd England 100% Contract printers
*Portsmouth Publishing & Printing Ltd England 100% Newspaper publishers and printers
*Northeast Press Ltd England 100% Newspaper publishers and printers
*The Tweeddale Press Group Ltd Scotland 100% Newspaper publishers
*Yorkshire Post Newspapers Ltd England 100% Newspaper publishers and printers
*Ackrill Newspapers Ltd England 100% Newspaper publishers
*Sheffield Newspapers Ltd England 100% Newspaper publishers and printers
*Lancashire Evening Post Ltd England 100% Newspaper publishers
*Lancashire Publications Ltd England 100% Newspaper publishers
*Lancaster & Morecambe Newspapers Ltd England 100% Newspaper publishers
*Blackpool Gazette & Herald Ltd England 100% Newspaper publishers
*East Lancashire Newspapers Ltd England 100% Newspaper publishers
*Held through subsidiary.
Subsidiary undertakings which are dormant are not listed above.
The principal country of operation is the same as the country of incorporation.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
65
Disposal of business
On 19 May 2003 the Company, through one of its subsidiaries, sold the trading activities and certain assets of Yorkshire Post
Training. The consideration received, net of fees, was £428,000 comprising fixed assets £45,000, debtors £45,000 and a gain on
sale of £338,000. The disposal of fixed assets has not been shown separately in note 13 due to the amount being immaterial.
15. Stocks
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Raw materials 2,664 2,483 17 14
Work in progress 2 2 2 2
Goods for re-sale 295 218 295 218
2,961 2,703 314 234
There is no material difference between the net book value of stocks as shown above and their estimated replacement cost.
16. Debtors
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade debtors 52,874 48,839 13 31
Amounts owed by Group undertakings — — 43,413 54,811
Prepayments 3,742 3,396 3 105
Other debtors 3,118 2,410 265 326
Dividends receivable — — 60,000 65,000
Corporation tax recoverable — — 10,358 10,000
59,734 54,645 114,052 130,273
Amounts falling due after more than one year:
Amounts owed by Group undertakings — — 440,401 440,401
Pension prepayments 13,949 6,965 65 73
Other debtors 35 97 — —
13,984 7,062 440,466 440,474 Johnston Press  Annual Report and Accounts 2003
Part of Life
66
17. Creditors: amounts falling due within one year
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Bank loans (note 19) 51,358 48,671 51,358 48,671
Loan stock (note 19) 1,442 1,415 1,000 973
Bank overdrafts (secured) 15,032 3,212 17,717 6,350
Trade creditors 9,099 8,087 — —
UK Corporation tax payable 14,074 9,615 — —
Other taxes and social security costs 11,341 11,911 189 227
Amounts owed to Group undertakings — — 42,018 47,164
Dividends proposed 11,360 10,202 11,360 10,202
Obligations under finance leases 16 16 — —
Other creditors 5,929 4,280 76 248
Accruals and deferred income 31,472 24,564 7,406 7,200
151,123 121,973 131,124 121,035
18. Creditors: amounts falling due after more than one year
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Bank loans (note 19) 192,097 418,555 192,097 418,555
Private placement of 10 year senior notes 132,785 — 132,785 —
Loan stock (note 19) 40,017 41,178 40,017 40,736
Senior discount notes 319 456 — —
Other creditors 7,482 12,296 1,169 800
Obligations under finance leases 50 74 — —
372,750 472,559 366,068 460,091
19. Loans
Borrowings gross of term debt issue costs were: Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Guaranteed loan stock 1999/2006 41,017 42,133 41,017 42,133
Guaranteed loan stock 1999/2004 442 884 — —
12.88% Senior discount notes 319 456 — —
Private placement of 10 year senior notes 132,785 — 132,785 —
Bank loans (secured) 247,933 472,630 247,933 472,630
422,496 516,103 421,735 514,763
Repayable:
Within one year 54,156 51,442 53,714 51,000
Within one to two years 65,893 60,442 65,893 60,000
Within two to five years 302,447 404,219 302,128 403,763
422,496 516,103 421,735 514,763
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
67
Derivatives and other financial instruments
The disclosures are as defined in FRS13 and, as permitted by that standard, certain financial assets such as investments in
subsidiaries, short-term debtors and creditors, pensions and provisions have been excluded. Further details of the Group’s 
treasury management policy are given on page 27.
At 31 December 2003, the Group had a multi-option borrowing facility of £510 million that consisted of a £307 million amortising
Term Loan and, a Revolving Credit Facility of £203 million both maturing on 12 March 2007, together with a £30 million bilateral
overdraft facility. On 7 January 2003, the previous £100 million 364 day facility was repaid in full, together with a voluntary repayment
of £33 million of the Term Loan Facility. These were replaced by a Private Placement of 10 year Senior Notes. The undrawn element of
the Facilities at 31 December 2003 amounted to £153 million. The Loan Stock 1999/2006 is part of the £307 million Term Loan
Facility and any redemptions over £1 million are funded from additional drawdowns from the Term Loan Facility.
The Private Placement of Senior Notes is made up of £60 million at a fixed rate of 6.3% and $115 million at a fixed rate of 5.75%.
Using hedging agreements, the latter tranche was swapped back into floating sterling to ensure the Group has no exposure to
interest rates outside the UK. 
The Senior Discount Notes outstanding at 31 December 2003 related to one bond holder within Regional Independent Media
Holdings Ltd (RIM) which did not accept the tender offer made by RIM prior to the Company’s acquisition. The Notes, expiring in
2008, contain no covenants and the total of £319,000 represents the value of the tender offer, thereby including an element of
interest. During 2003, settlements were reached with all holders of the 10.5% Senior notes outstanding at 31 December 2002.
Interest rate profile
At 31 December 2003, the Group’s financial assets consisted of sterling cash deposits of £4,051,000 (2002 - £7,754,000) which
are placed on money market at call, 7-day and monthly rates. The interest rate profile of the Group’s financial liabilities, including
the swaps held, at 31 December 2003 was:
Borrowings Proportion
Total Floating Fixed Floating rate Fixed rate
£’000 £’000 £’000 % %
2003
Total borrowings 422,496 62,496 360,000 15 85
2002
Total borrowings 516,103 63,003 453,100 12 88
The weighted average interest rate on the fixed rate borrowings at 31 December 2003 was 5.30% (2002 - 5.06%) which is fixed
for an average period of 5 years (2002 - 4 years).
The floating rate is Libor plus or minus an agreed margin fixed at maturity intervals which can be monthly, quarterly or half yearly.
The margin is based on the following:
a) Loan Stock 1999/2004 0.75% below Libor
b) Loan Stock 1999/2006 1% above Libor
c) Term Loan and Revolving Credit Facility 1.5% above Libor with adjustments dependent on financial ratios.
There is a difference between the book value and fair value, measured under discounted cashflow, of these instruments 
amounting to £14 million. The fall in fair value of the swaps would be equally offset by an increase in fair value of the underlying
debt. At 31 December 2003 there were no material unrecognised gains or losses. Johnston Press  Annual Report and Accounts 2003
Part of Life
68
20. Provisions for Liabilities and Charges
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
Deferred taxation 14,552 4,421 (420) (569)
Unfunded pensions 1,220 920 1,220 920
Post retirement health costs 555 611 — —
16,327 5,952 800 351
a) Deferred taxation
The balance on the deferred taxation account represents the postponed liability calculated at 30% (2002 - 30%) arising from:
(i) Accelerated capital allowances.
(ii) Timing differences on pension commitments.
(iii) Other timing differences, including the deferred taxation asset of the RIM losses inherited.
Details of the deferred taxation account are as follows:
(i) (ii) (iii)
Accelerated Other timing
capital allowances Pensions differences Total
£’000 £’000 £’000 £’000
Group
At 1 January 2003 11,539 (830) (6,288) 4,421
Transfer from Profit and Loss Account 1,264 1,669 7,198 10,131
At 31 December 2003 12,803 839 910 14,552
Company
At 1 January 2003 (17) (256) (296) (569)
Transfer (to)/from Profit and Loss Account (13) (91) 253 149
At 31 December 2003 (30) (347) (43) (420)
b) Unfunded ex-gratia pensions
As required by SSAP 24, a provision has been made for unfunded pension commitments and the liability for such commitments
has been valued by a qualified actuary. The movement in the provision during the year is as follows:
Group Company
£’000 £’000
Valuation at 1 January 2003 920 920
Pensions paid during the year (124) (124)
796 796
Valuation at 31 December 2003 1,220 1,220
Charged to Profit and Loss Account (424) (424)
c) The movement in post retirement health costs relates to payments made in the year.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
69
21. Share Capital
2003 2002
£’000 £’000
Authorised — equity and voting
390,000,000 Ordinary Shares of 10p each (2002 - 390,000,000) 39,000 39,000
Authorised — non-equity and non-voting
756,000 13.75% Cumulative Preference Shares of £1 each (2002 - 756,000) 756 756
415,000 13.75% “A” Preference Shares of £1 each (2002 - 415,000) 415 415
40,171 40,171
Issued — equity
283,994,896 Ordinary Shares of 10p each (2002 - 283,389,258) 28,399 28,339
Issued — non-equity
756,000 13.75% Cumulative Preference Shares of £1 each (2002 - 756,000) 756 756
349,600 13.75% “A” Preference Shares of £1 each (2002 - 349,600) 350 350
29,505 29,445
During the year ended 31 December 2003, Ordinary Shares of 10p each were issued and allotted as follows:
£’000
205,867 shares under the terms of the executive share option schemes for a consideration of £477,149 20
399,771 shares under the terms of the save as you earn scheme for a consideration of £913,547 40
Total at 31 December 2002 29,445
Total at 31 December 2003 29,505
Details of options outstanding are shown on page 43 and in note 27.
22. Reserves
a) Reserves Share Revaluation Other Own Profit and
premium reserve reserves shares loss account Total
£’000 £’000 £’000 £’000 £’000 £’000
Group
At 1 January 2003 - as reported 319,228 2,990 — — 209,834 532,052
Prior year adjustment (see note 22b) — — — (532) — (532)
As restated 319,228 2,990 — (532) 209,834 531,520
Retained profit for year ———— 72,515 72,515
Share premium on issue of new
Ordinary Shares 1,330 ———— 1,330
Revaluation adjustment — (85) — — 85 —
Own shares purchased — — — (225) — (225)
Amounts written off — — — 287 — 287
At 31 December 2003 320,558 2,905 — (470) 282,434 605,427 Johnston Press  Annual Report and Accounts 2003
Part of Life
70
22. Reserves (continued)
Share Revaluation Other Own Profit and
premium reserve reserves shares loss account Total
£’000 £’000 £’000 £’000 £’000 £’000
Company
At 1 January 2003 - as reported 319,228 82 19,510 — 273,898 612,718
Prior year adjustment (see note 22b) — — — (532) — (532)
As restated 319,228 82 19,510 (532) 273,898 612,186
Retained profit for year ———— 65,150 65,150
Share premium on issue of new
Ordinary Shares 1,330———— 1,330
Revaluation adjustment — (10) — — 10 —
Own shares purchased — — — (225) — (225)
Amounts written off — — — 287 — 287
At 31 December 2003 320,558 72 19,510 (470) 339,058 678,728
The Profit and Loss Account is the only distributable reserve.
The cumulative amount of goodwill written off against Group reserves, net of goodwill relating to undertakings disposed of, is
£60,956,000 (2002 - £60,956,000).
b) Prior year adjustment
The publication of UTIF Abstract 38 amended the accounting treatment of shares held in an Employee Share Trust. The value of
the shares at 31 December 2002, £532,000, has been re-categorised from investments to a reduction from shareholders’ funds.
23. Notes to Cash Flow Statement 
2003 2002
£’000 £’000
a) Net cash inflow from operating activities
Operating profit 160,581 129,470
Exceptional items (669) (4,976)
Depreciation charges 18,016 16,718
Development grant amortisation — (14)
Loss on sale of tangible fixed assets 31 81
Profit on sale of business (338) —
Amount written off Employee share option trust 287 111
(Increase)/decrease in stocks (258) 56
(Increase)/decrease in debtors (12,281) 9,026
Increase in creditors 1,904 1,279
Increase/(decrease) in unfunded pension provision 300 (294)
Net cash inflow from operating activities 167,573 151,457
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
71
2003 2002
£’000 £’000
b) Return on investments and servicing of finance
Income from fixed asset investments 845 850
Interest received 308 423
Dividends received from associated undertakings 352 308
Interest paid (32,202) (28,050)
Preference dividends paid (152) (152)
Term debt issue costs — (6,845)
Net cash outflow (30,849) (33,466)
c) Taxation
UK corporation tax paid (23,548) (17,713)
Net cash outflow (23,548) (17,713)
d) Capital expenditure and financial investment
Purchase of tangible fixed assets (19,103) (15,741)
Sale of tangible fixed assets 1,015 2,165
Purchase of investment - Employee share option trust (238) (643)
Sale of investment 35 1
Net cash outflow (18,291) (14,218)
e) Acquisitions and disposals
Purchase of publishing titles/subsidiary undertakings — (573,330)
Sale of subsidiary undertaking/business 608 5,662
Net cash in subsidiaries sold — (58)
Net cash inflow/(outflow) 608 (567,726)
Free cash flow is defined as items a) to d) above.
f) Financing
Proceeds from issue of ordinary share capital 1,390 223,145
Loan stock repaid (1,695) (18,269)
Loans repaid (224,697) (179,881)
New loans 132,785 472,630
Finance leases (24) (43)
Net cash (outflow)/inflow (92,241) 497,582
The business sold in the year had no material impact on the cash inflows or outflows. Johnston Press  Annual Report and Accounts 2003
Part of Life
72
23. Notes to Cash Flow Statement (continued) 
g) Analysis and reconciliation of net debt
Other
1 January non-cash 31 December
2003 Cash flow changes 2003
£’000 £’000 £’000 £’000
Cash at bank and in hand 10,735 (791) — 9,944
Overdrafts (3,212) (11,820) — (15,032)
7,523 (12,611) — (5,088)
Bank loans (472,630) 224,697 — (247,933)
Senior notes — (132,785) — (132,785)
Loan stock (43,473) 1,695 — (41,778)
Finance leases (90) 24 — (66)
Term debt issue costs 5,828 — (1,350) 4,478
(510,365) 93,631 (1,350) (418,084)
Net debt (502,842) 81,020 (1,350) (423,172)
Of the £9,944,000 cash at bank and in hand, £1,532,000 is held on deposit to guarantee the 1999/2006 Loan Stock interest for
one year.
2003 2002
£’000 £’000
(Decrease)/increase in cash in the year (12,611) 4,262
Repayment/(issue) of debt and movement in lease financing 93,631 (267,592)
Change in net debt resulting from cash flows 81,020 (263,330)
Amortisation of term debt issue costs (1,350) (2,644)
Movement in net debt in year 79,670 (265,974)
Net debt at beginning of year (502,842) (236,868)
Net debt at end of year (423,172) (502,842)
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
73
24. Guarantees and Other Financial Commitments
a) Lease commitments
The Group has entered into non-cancellable operating leases in respect of plant and machinery, the payments for which extend over a
period of years. The total annual rental for 2003 was £1,903,000 (2002 - £1,741,000). In addition, the Group leases certain land and
buildings on short-term and long-term operating leases. The annual rental on these leases was £2,978,000 (2002 - £2,635,000). The
rents payable under property leases are subject to renegotiation at various intervals specified in the leases. The Group pays insurance,
maintenance and repairs of these properties.
Group Company
2003 2002 2003 2002
£’000 £’000 £’000 £’000
The minimum annual rentals
under the foregoing leases are as follows:
Plant — expiring
Within one year 100 500 — —
Between two and five years 231 863 — —
After five years — 53 — —
331 1,416 — —
Land and buildings — expiring
Within one year 381 551 6 6
Between two and five years 485 503 — —
After five years 1,822 1,951 — —
2,688 3,005 6 6
b) Capital commitments
Contracted for but not provided — 585 — —
c) Bank guarantees
All companies in the Group have granted an unlimited inter-company guarantee and letter of set-off to the Group’s bankers. 
On 7 January 2003 the debenture, bond and floating charge, previously in place, was released. Johnston Press  Annual Report and Accounts 2003
Part of Life
74
25. Pension Schemes
The Group operates two defined benefit pension schemes, the Johnston Press Pension Scheme (JPPS), which consolidated a
number of defined benefit pension schemes in 2001, and the Regional Independent Media Pension Plan (RIM). During 2003, the
JPPS was merged with the Johnston Press Lifestyle Pension Plan, a defined contribution scheme, to form the Johnston Press
Pension Plan (JPPP). The assets of the schemes are held separately from those of the Group. The contributions are determined 
by a qualified actuary on the basis of triennial valuations using the projected unit method. The financial information provided below
relates to the defined benefit elements of the plan.
Johnston Press RIM Pension
Pension Scheme Plan
(JPPS) (RIM)
Most recent valuation 31 December 2002 31 December 2002
Assumed investment return per annum 4.5%-6.5% 4.5%-6.5%
Annual salary increase at 4% 4%
Market value of scheme assets £118,249,000 £53,300,000
Actuarial value of assets to accrued benefit 72% 66%
Contribution ranges:
Employee 4%-8% 3.5%-6.5%
Employer 13.1% 12.5%
The JPPS and RIM pension plan valuations at 31 December 2002 produced deficits of £46.3 million and £27.7 million respectively.
On the acquisition of Regional Independent Media Holdings Ltd in April 2002, the Group recognised the pension deficit of £8.8
million at 31 December 2001 as a fair value adjustment. During 2003, the Group made one-off contributions of 
£7.8 million and £4.8 million to the JPPS and RIM pension plan respectively to ensure that the MFR funding level of both schemes
was above 90%. An increased level of contribution from the employer and employees has been implemented to meet 
the ongoing funding requirement.
The pension cost charged in the Profit and Loss Account was as follows:
2003 2002
£’000 £’000
Defined benefit schemes 5,531 3,620
Defined contribution schemes 3,059 3,215
Charged in accounts 8,590 6,835
Actual contributions paid 20,384 9,859
11,794 3,024
Deficit in RIM pension plan provided as a fair value adjustment — 8,800
Increase/(decrease) in balance sheet excesses 11,794 (5,776)
A cumulative excess of £9,949,000 (2002 - deficit of £1,845,000) is included within the balance sheet. 
Additional disclosures regarding the Group’s defined benefit pension schemes are required under the transitional provisions of
FRS17 ‘Retirement Benefits’ and these are set out below. The disclosures relate to the third year of the transitional provisions.
They provide information which will be necessary for full implementation of FRS17.
The actuarial valuations described above have been updated at 31 December 2003 by a qualified actuary using revised
assumptions that are consistent with the requirements of FRS17. Investments have been valued, for this purpose, at fair value.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
75
The major assumptions used for actuarial valuation were:
2003 2002
Rate of increase in salaries 3.5% 3.2%
Rate of increase in pensions in payment 2.5% 2.2%
Discount rate 5.4% 5.5%
Inflation assumption 2.5% 2.2%
The fair value of the assets in the Schemes, the present value of the liabilities in the Schemes and the expected rates of return at
the balance sheet date were:
JPPS RIM Total
2003 2003 2003 2003 2003 2002 2002 2001 2001
% £m % £m £m %£m % £m
Equities 7.3 91.7 7.3 55.2 146.9 7.0 113.3 7.5 90.0
Bonds 5.2 48.0 5.2 10.3 58.3 4.5 56.1 5.0 45.0
Cash 3.8 1.6 3.8 5.6 7.2 3.5 3.6 3.5 4.0
Total fair value of assets 141.3 71.1 212.4 173.0 139.0
Present value of scheme liabilities 184.2 93.6 277.8 247.9 152.0
Net pension deficit 42.9 22.5 65.4 74.9 13.0
Impact of deferred taxation 12.9 6.7 19.6 22.5 3.9
Net pension deficit after taxation 30.0 15.8 45.8 52.4 9.1
The JPPS contribution rate was increased from 15.0% to 19.3% in April 2002 and from 17.6% to 19% in the RIM plan in October
2002. These contribution rates have been set for the next three years and were in addition to the one-off Company contributions.
The Schemes are closed Schemes and therefore under the projected unit method the current service cost would be expected to
increase as the members of the scheme approach retirement.
Analysis of the amount that would have been charged to operating profit under FRS17
2003 2002
JPPS RIM JPPS RIM
£’000 £’000 £’000 £’000
Current service cost 2,579 2,131 2,700 1,432
Past service cost —— — 217
2,579 2,131 2,700 1,649
Analysis of amount that would have been credited to net finance income under FRS17
2003 2002
JPPS RIM JPPS RIM
£’000 £’000 £’000 £’000
Expected return on pension scheme assets 7,227 3,727 9,100 4,387
Interest on pension scheme liabilities (9,232) (4,383) (9,100) (4,566)
(2,005) (656) — (179) Johnston Press  Annual Report and Accounts 2003
Part of Life
76
25. Pension Schemes (continued)
Analysis of actuarial gain/(loss) that would have been recognised in the statement of total recognised gains and losses
2003 2002
JPPS RIM JPPS RIM
£’000 £’000 £’000 £’000
Actual return less expected return on pension scheme assets 10,449 7,382 (28,300) (12,237)
Experience gains and losses arising on the scheme liabilities 2,287 (2,456) (1,500) 736
Changes in assumptions underlying the present value of the scheme liabilities (10,255) (6,322) (7,500) 3,758
2,481 (1,396) (37,300) (7,743)
History of experience gains and losses
2003 2002
JPPS RIM JPPS RIM
Difference between the expected and actual return on 
share scheme assets:
Amount (£’000) 10,449 7,382 (28,300) (12,237)
Percentage of scheme assets 7.4% 10.4% (23.8%) (22.6%)
Experience gains and losses on scheme liabilities:
Amount (£’000) 2,287 (2,456) (1,500) 736
Percentage of the present value of scheme liabilities 1.2% (2.6%) (0.9%) 0.9%
Total actuarial gain recognised in the statement  
of total recognised gains and losses:
Amount (£’000) 2,481 (1,396) (37,300) (7,743)
Percentage of the present value of scheme liabilities 1.3% (1.5%) (22.1%) (9.8%)
The analysis of reserves that would have arisen if FRS17 had been fully implemented is as follows:
2003 2002 2001
£’000 £’000 £’000
Profit and loss reserve excluding pension deficit 282,434 209,834 159,347
Amount relating to defined benefit pension scheme deficit
net of related deferred tax (39,620) (46,267) (9,100)
Profit and loss reserve including deficit 242,814 163,567 150,247
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
77
26. Related Party Disclosures
a) Related Party Transactions
The Group undertook transactions, all of which were on an arms’ length basis, and had balances outstanding at 31 December
2003 with related parties as shown below:
Purchases Creditors Sales Debtors
Related party £’000 £’000 £’000 £’000
Emcliffe Ltd 360 — 230 —
Classified Periodicals Ltd 78 14 74 18
Free Admart Ltd 98 14 — —
Two Boroughs Radio Ltd — — 344 27
Emcliffe Ltd and Classified Periodicals Ltd are associated undertakings of Johnston Press plc, which re-publish in a separate
publication classified advertisements which appear in the Group’s titles and those of certain other publishers. Free Admart Ltd
publishes a separate title in conjunction with other newspaper publishers. Two Boroughs Radio Ltd is a local radio station in
Burnley. The Group provides certain administrative, distribution and production services to Emcliffe Ltd, Classified Periodicals Ltd
and Two Boroughs Radio Ltd is charged by all associated undertakings for advertisements placed.
b) Post Balance Sheet Event
The Emcliffe Ltd joint venture ceased on 31 January 2004 and from that date Emcliffe Ltd became a non-trading company.
27. Employee Share Schemes
Executive Share Option Scheme
The number of options over ordinary shares granted to employees under the Executive Share Option Scheme are as follows:
Number of
Date of Grant Exercisable between Option Price Ordinary Shares
15.07.97 15.07.00 and 14.07.07 155.34p 6,437
12.10.98 12.10.01 and 11.10.08 135.53p 25,823
10.05.99 10.05.02 and 09.05.09 254.39p 86,464
28.04.00 28.04.03 and 27.04.10 294.91p 57,631
22.12.00 22.12.03 and 21.12.10 308.42p 3,242
17.04.01 17.04.04 and 16.04.11 303.02p 204,926
05.11.01 05.11.04 and 04.11.11 268.80p 81,841
24.04.02 24.04.05 and 23.04.12 356.50p 272,215
13.01.03 13.01.06 and 12.01.13 368.50p 241,508
21.03.03 21.03.06 and 20.03.13 347.00p 390,797
28.08.03 28.03.06 and 27.08.13 448.50p 16,723
The options granted to Executive Directors and details of share prices in 2003 are shown on page 43. Johnston Press  Annual Report and Accounts 2003
Part of Life
78
27. Employee Share Schemes (continued)
Group Savings - Related Share Option Scheme
The Company operates a Group savings-related share option scheme. This has been approved by the Inland Revenue and is
based on eligible employees being granted options and their agreeing to save weekly or monthly in a sharesave account with
Halifax plc for a period of either 3, 5 or 7 years. The right to exercise is at the discretion of the employee within six months
following the end of the period of saving.
Options under this scheme at 31 December 2003 to employees are made up as follows:
Option Grant Date Number of Shares Issue price per Share
15.07.97 386,849 162.09p
02.10.98 140,962 167.49p
29.09.99 272,782 278.25p
29.09.00 185,692 310.67p
27.09.01 362,928 274.65p
27.09.02 1,970,325 279.00p
26.09.03 757,528 345.50p
The above options were issued to employees at a price equivalent to the average mid-market price for the 30 days prior to 
7 July 1997, 10 September 1998, 6 September 1999, 4 September 2000, 3 September 2001, 30 August 2002 and 29 August
2003 respectively. A discount of 20% to the average mid-market price was applied to the 2002 and 2003 issues.
Notes to the
ACCOUNTS Y ear to 31 December 2003  Johnston Press  Annual Report and Accounts 2003
Part of Life
79
Year to 31 December 2002 Year to 31 December 2003
6 months to 6 months to
December June Year December June Year
£’000 £’000 £’000 £’000 £’000 £’000
Turnover
Existing operations 150,992 155,409 306,401 243,387 248,456 491,843
Acquisitions 82,009 38,405 120,414 — — —
Discontinued 1,579 — 1,579 — — —
Total turnover 234,580 193,814 428,394 243,387 248,456 491,843
Operating profit
Existing operations 45,064 51,305 96,369 77,394 83,187 160,581
Acquisitions 23,166 9,701 32,867 — — —
Discontinued 234 — 234 — — —
Total operating profit 68,464 61,006 129,470 77,394 83,187 160,581
Share of associates’ operating profit 197 204 401 350 231 581
Profit on ordinary activities 
before interest and exceptional items 68,661 61,210 129,871 77,744 83,418 161,162
Exceptional items (706) (3,732) (4,438) — — —
Profit on ordinary activities 
before interest and taxation 67,955 57,478 125,433 77,744 83,418 161,162
Net interest (19,502) (13,206) (32,708) (16,491) (16,719) (33,210)
Profit on ordinary activities before taxation 48,453 44,272 92,725 61,253 66,699 127,952
Taxation on profit on ordinary activities (13,855) (13,006) (26,861) (18,430) (19,834) (38,264)
Profit on ordinary activities after taxation 34,598 31,266 65,864 42,823 46,865 89,688
Dividends (10,287) (5,177) (15,464) (11,433) (5,740) (17,173)
Retained profit for year 24,311 26,089 50,400 31,390 41,125 72,515
All half years comprised 26 weeks trading.
Group Profit and Loss Account
HALF YEAR SUMMARY Johnston Press  Annual Report and Accounts 2003
Part of Life
80
Five Y ear
SUMMARY
1999 2000 2001 2002 2003
£’000 £’000 £’000 £’000 £’000
Restated
Profit and Loss Account
Turnover 242,564 292,174 300,615 428,394 491,843
Operating profit on ordinary activities 65,914 83,896 89,461 129,470 160,581
Share of associates’ operating profit 310 380 397 401 581
Exceptional items (5,230) — (5,014) (4,438) —
Profit before interest and taxation 60,994 84,276 84,844 125,433 161,162
Net interest payable (11,160) (18,819) (16,298) (32,708) (33,210)
Profit before taxation 49,834 65,457 68,546 92,725 127,952
Taxation (15,272) (19,322) (19,958) (26,861) (38,264)
Profit after taxation 34,562 46,135 48,588 65,864 89,688
Dividends (8,171) (9,202) (10,015) (15,464) (17,173)
Retained profit for year 26,391 36,933 38,573 50,400 72,515
Statistics
Basic earnings per share 15.45p 20.63p 21.69p 24.65p 31.57p
Headline earnings per share 17.29p 20.97p 23.65p 26.75p 32.36p
Operating profit to turnover 27.2% 28.7% 29.8% 30.2% 32.6%
Balance Sheet
Intangible fixed assets 403,440 419,483 425,494 927,557 927,557
Tangible fixed assets 91,846 102,495 118,541 154,084 156,972
Investments 1,821 5,224 5,137 4,663 3,980
497,107 527,202 549,172 1,086,304 1,088,509
Net current liabilities (17,671) (26,385) (36,654) (46,828) (64,500)
Total assets less current liabilities 479,436 500,817 512,518 1,039,476 1,024,009
Creditors due after one year (260,790) (242,429) (212,016) (472,559) (372,750)
Provisions (5,806) (9,391) (12,493) (5,952) (16,327)
Net Assets 212,840 248,997 288,009 560,965 634,932
Shareholders’ Funds
Ordinary Shares 20,048 20,111 20,136 28,339 28,399
Preference Shares 1,106 1,106 1,106 1,106 1,106
Reserves 191,686 227,780 266,767 531,520 605,427
Capital Employed 212,840 248,997 288,009 560,965 634,932
The 1999 year was a 53 week period. Johnston Press  Annual Report and Accounts 2003
Part of Life
Notice of
MEETING
81
Notice is hereby given that the seventy-fifth Annual General Meeting of the Company will be held in the Boardroom, The
Caledonian Hilton Hotel, Princes Street, Edinburgh on 30 April 2004 at 11am to transact the following business of the Company:
1. To receive the Accounts for the year ended 31 December 2003 and the reports of the Directors and Auditors thereon.
2. To receive the Directors’ Remuneration Report for the year ended 31 December 2003.
3. To declare a dividend.
4. To re-elect Mr H C M Johnston and Mr S R Paterson and to elect Mrs M A King and Mr S J Waugh as Directors of 
the Company.
5. To re-appoint Deloitte & Touche LLP , Chartered Accountants and Registered Auditors, as auditors of the Company and to
authorise the Directors to fix their remuneration.
As special business, to consider and, if thought fit, pass the following Resolutions of which number 6 will be proposed as an
Ordinary Resolution and numbers 7, 8 and 9 will be proposed as Special Resolutions:-
Ordinary Resolutions
6. That the Directors be and are hereby generally and unconditionally authorised in accordance with Section 80 of the Companies
Act 1985 (“the Act”) to exercise all powers of the Company to allot relevant securities (as defined for the purpose of that
section) up to a maximum nominal amount of £9,466,496. This authority shall expire on 30 April 2009 save that the Company
may, before this authority expires, make an offer or agreement which would or might require relevant securities to be allotted
after it expires. All previous general authorities under Section 80 of the Act shall cease to have effect.
Special Resolutions
7. That, subject to the passing of Resolution 6 set out in the notice of this meeting, the Directors be and are hereby empowered
pursuant to the provisions of Section 95 of the Companies Act 1985 (“the Act”) to allot equity securities (within the meaning of
Section 94 of the Act) pursuant to the authority granted by that Resolution for cash, as if sub-section (1) of Section 89 of the
Act did not apply to any such allotment provided that this power shall be limited:
(i) to the allotment of such equity securities in connection with a rights issue in favour of Ordinary Shareholders where the
equity securities respectively attributable to the interests of all Ordinary Shareholders are proportionate (as nearly as may
be) to the respective numbers of Ordinary Shares held by them subject only to such exclusions or other arrangements as
the Directors may consider necessary or expedient to deal with fractional entitlements or legal or practical problems under
the laws of, or the requirements of any recognised regulatory body in, any territory; and
(ii) to the allotment (otherwise than pursuant to sub-paragraph (i) above) of equity securities up to an aggregate nominal value
of £1,419,974.
This power shall expire, unless previously revoked or varied, on the date of the Annual General Meeting of the Company held in
2005 save that the Company may before such expiry make an offer or agreement which would or might require equity
securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such offer or agreement
as if the power conferred hereby had not expired.  Johnston Press  Annual Report and Accounts 2003
Part of Life
82
8. That the Company be and is hereby generally and unconditionally authorised to make market purchases (within the meaning of
Section 163(3) of the Companies Act 1985) of ordinary shares of 10p each in the Company (‘Ordinary Shares’) PROVIDED 
THAT:
(i) the maximum number of Ordinary Shares hereby authorised to be acquired is 28,000,000;
(ii) the maximum price which may be paid for any such Ordinary Share is an amount equal to 105% of the average of the
middle market quotations for an Ordinary Share as derived from The London Stock Exchange Daily Official List for the five
business days immediately preceding the day on which the share is contracted to be purchased and the minimum price
which may be paid for any such share is 10p (in each case exclusive of associated expenses); and
(iii) the authority hereby conferred shall expire at the conclusion of the next Annual General Meeting of the Company or 
12 months from the date of the passing of this resolution, whichever is the earlier; but a contract of purchase may be made
before such expiry which will or may be completed wholly or partly thereafter, and a purchase of Ordinary Shares may be
made in pursuance of any such contract.
9. That the Articles of Association be and are hereby altered as set out in the Appendix to the Circular to Shareholders dated 
17 March 2004 circulated with the Notice of Annual General Meeting.
By Order of the Board
P R Cooper, ACA
Secretary
53 Manor Place
Edinburgh
EH3 7EG
17 March 2004
Notes
A In accordance with the Articles of Association, only holders of Ordinary Shares of the Company are entitled to attend and vote
at the Meeting.
B An Ordinary Shareholder entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies to attend and, on a
poll, vote instead of him. A proxy need not be a member of the Company.
C A form of proxy is enclosed for Ordinary Shareholders which, to be valid, must be completed in accordance with the
instructions printed thereon and be lodged with the Company’s Registrars not later than 48 hours before the time of the
Meeting.
D The Register of Directors’ interests in the share capital of the Company maintained under section 325 of the Companies Act
1985, will be available for reference at the place of the Meeting from 10.30am until its conclusion.
E Copies of all Directors’ Service Contracts will be available for inspection at the Registered Office of the Company during
normal business hours on any weekday (Saturdays and public holidays excepted) from the date of this Notice until the date of
the Meeting and on that date at the place of the Meeting from 10.30am until its conclusion.
F Copies of the current Articles of Association, together with the circular containing the proposed changes will be available at
the Company’s Registered Office during normal working hours on weekdays (Saturdays and bank holidays excepted) up to
and including the date of the Annual General Meeting and on that day at the place of the Meeting from 10.30am until its
conclusion.
Notice of
MEETING I/We
(Block capitals)
of
being (a) member(s) of Johnston Press plc hereby appoint the Chairman of the meeting*
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on 30 April 2004
and at every adjournment thereof.
My/our proxy is to vote as indicated in respect of the following resolutions:
For Against Abstain
1. The adoption of the accounts and of the Directors’ and 
Auditors’ Reports thereon
2. The adoption of the Remuneration Report
3. The declaration of the dividend
4. The re-election/election of Directors as follows:
Re-election of:
(a) Mr H C M Johnston
(b) Mr S R Paterson
Election of:
(d) Mrs M A King
(e) Mr S J Waugh
5. (a) The re-appointment of Auditors
(b) To authorise the Directors to fix the Auditors’ remuneration
6. Ordinary Resolution (authority to allot securities)
7. Special Resolution (disapplication of pre-emption rights)
8. Special Resolution (authority to purchase own shares)
9. Special Resolution (alteration of Articles of Association)
Signature(s) Dated this day of 2004
Please indicate with an ‘X’ in the appropriate box how you wish to vote. Unless otherwise instructed the proxy will vote, or abstain
from voting, at his discretion.
Notes:
1. To be valid, this proxy, together with any power of attorney or the authority under which it is signed or a notarially certified
copy thereof, must reach the Company’s Registrars, Computershare Investor Services PLC, The Pavilions, Bridgwater Road,
Bristol BS13 8FB at least 48 hours before the meeting.
2. Appointments by corporations must be under the common seal or under the hand of an officer authorised in writing.
3. In the case of joint holders the signature of any one joint holder is sufficient.
*4. Should a member wish to nominate any other person strike out “the Chairman of the Meeting” and insert the name of the
alternative proxy which need not be a member of the Company.
5. Completion of this proxy will not prevent members from attending and voting at the Meeting if subsequently they find that
they are able to do so.
Please tear along this line
Johnston Press plc
FORM OF PROXY for Annual General Meeting on Friday 30 April 2004  Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS13 8FB
BUSINESS REPLY SERVICE
Licence No. SWB 1357
First fold
Second fold
Third fold and tuck in
1 Designed and produced by corporateprm, Edinburgh and London. www.corporateprm.co.uk
ADVISORS
Solicitors
MacRoberts
152 Bath Street 
Glasgow
G2 4TB
Ashurst Morris Crisp 
Broadwalk House
5 Appold Street
London
EC2A 2HA
Auditors
Deloitte & Touche LLP 
Chartered Accountants 
and Registered Auditors 
Saltire Court
20 Castle Terrace
Edinburgh
EH1 2DB
Investment Bankers 
Schroder Salomon Smith Barney
Citigroup Centre
33 Canada Square
Canary Wharf
London
E14 5LB
Principal Bankers 
The Royal Bank of Scotland plc 
36 St Andrew Square 
Edinburgh
EH2 2YB
Principal Clearing Bankers 
Barclays Bank plc
Luton Corporate Banking Centre
1 Capability Green
Luton
LU1 3US
Stockbrokers 
Deutsche Bank AG London
Winchester House
1 Great Winchester Street
London
EC2N 2DB
Registrars
Computershare Investor Services PLC
Lochside House
7 Lochside Avenue
Edinburgh Park
Edinburgh
EH12 9DJ Johnston Press plc
53 Manor Place
Edinburgh EH3 7EG
Tel: 0131 - 225 3361
Fax: 0131 - 225 4580
e-mail: enquiries@johnstonpress.co.uk
Web Site: http://www.johnstonpress.co.uk
Registration number 15382