Johnston Press plc 
Annual Report and Accounts 2004 As life is local,
Johnston Press is
focused on local
publishing in print
and online
Our aim is to serve our local communities by publishing quality newspapers, 
related print publications and websites that attract users, providing an effective 
platform for advertisers to reach their target audience.
243
newspaper titles
182
local websites
10.8
million readers Johnston Press plc 
Annual Report and Accounts 200401
02 Highlights
04 Why do we focus on 
local publishing?
06 What opportunities does our 
strategy provide for growth?
08 How do we maximise efficiency 
across the business?
10 Chairman’s Statement
14 Chief Executive Officer’s Review 
26 Financial Review
31 Management Committee
32 Board of Directors
34 Group’s Newspaper Titles
36 Websites by Division
37 Corporate Governance 
41 Corporate Social Responsibility 
46 Directors’ Remuneration Report 
52 Directors’ Report 
55 Independent Auditors’ Report 
56 Group Profit and Loss Account 
57 Group Statement of Total 
Recognised Gains and Losses 
57 Group Reconciliation of Movements 
in Shareholders’ Funds 
57 Group Note of Historical 
Cost Profits and Losses 
58 Group Balance Sheet
59 Group Cash Flow Statement 
60 Company Balance Sheet 
61 Notes to the Accounts 
88 Group Profit and Loss Account 
Half Year Summary 
89 Five Year Summary
90 Notice of Meeting
Contents
Why do we focus on 
local publishing? page 4
What opportunities does our 
strategy provide for growth? page 6
How do we maximise efficiency
across the business? page 8 Johnston Press plc 
Annual Report and Accounts 2004 02
Highlights
Strong performance
✽ Better than expected 
advertising revenue growth 
✽ Launch of new publications 
and supplements
✽ Good organic growth in 
other revenues
✽ Excellent cost control
✽ Continued investment 
for efficiency
✽ Long term printing contracts 
with News International 
✽ Significant investment in 
market research
✽ Website page impressions
increased by over a third
Operational Highlights
✽ Pre Tax Profit up 17.7%
✽ Earnings Per Share up 19.1%
✽ Headline Earnings Per Share 
up 17.3%
✽ Dividend Per Share up 20.0%
✽ Turnover up 5.5%
✽ Operating Profit up 10.4% 
✽ Operating Profit pre Exceptionals
(underlying growth) up 9.2%*
✽ Like-for-like Advertising 
Revenues up 5.5%*
✽ Operating Cash Flow up 15.0%
✽ Interest Cover up to 6.8x
✽ Internet Revenues up 17.0%
* see Financial Review for definitions
Financial Highlights Johnston Press plc 
Annual Report and Accounts 200403
Turnover £m
£518.8m
up 5%
00 01 02 03 04
292.2
300.6
428.4
518.8
Operating Profit £m
£ 177 .2m
up 10%
00 01 02 03 04
83.9
89.5
160.6
177.2
Operating Profit Margin
up to34.0%
00 01 02 03 04
28.7
29.8
30.2
32.6
34.0
Internet Revenues
£6.3m
up 17%
00 01 02 03 04
1.2
2.6
4.4
5.4
6.3
Headline EPS p
37.96p
up 17%
00 01 02 03 04
20.97
23.65
26.75
32.36
37.96
Dividends p
7.2p
up 20%
00 01 02 03 04
4.5
4.9
5.4
6.0
7.2
491.8
129.5 Johnston Press plc 
Annual Report and Accounts 2004 04 Johnston Press plc 
Annual Report and Accounts 200405
that “life is local” and the Johnston
Press strategy of serving the needs 
of local communities in many parts 
of the UK. The focus on local markets
enables the Group to offer news
coverage that is highly targeted to 
the needs of these communities and
it is this focus which differentiates
Johnston Press from many other
competing media channels.
By publishing quality newspapers for local
communities we attract readers and provide
an effective platform for advertisers.
Research carried out on behalf of
the Newspaper Society has indicated
that the vast majority of people
regard a sense of belonging and
attachment to their local area as 
an important source of identity in
their lives. Indeed 56%* of those
interviewed felt that their region was
central to defining who they are. 
This research supports the concept
A sense of community
The relevance and strong affinity to
the communities we serve ensure that
Johnston Press is able to provide an
advertising platform with high levels of
local market penetration. In addition to
this local focus, we are able to offer
our customers the opportunity to
advertise in a packaged range of titles,
or online, and this in turn enables them
to target specific demographic groups
or the geographic areas that are most
relevant to their needs or businesses,
with high market penetration. 
The successful delivery of this
efficient and flexible advertiser
platform is confirmed by the fact 
that in 2004 Johnston Press
increased total advertising revenues
by 5.5% on a like-for-like basis. 
More generally, however, the
effectiveness of the regional press 
as an advertising medium is further
endorsed by the fact that in value
terms, it remains the largest print
advertising medium in the UK.
Advertising revenue
86%
*
of people “feel part of
their local community”
UK Media Advertising
Revenue Share
+
* Source: myuk. Redefining Regions
The Future Foundation (2003)
A TV 25.7%
B Regional Press 20.6%
C National Press 13.1%
D Magazines 12.7%
E Directories 7.1%
F Direct Mail 7.0%
G Posters 6.2%
H Radio 3.6%
I Internet 2.6%
J Cinema 1.2%
+ Source: Advertising Association’s
Advertising Statistics Yearbook 2004
A
B
D
C
E
F
G
H
I J  Johnston Press plc 
Annual Report and Accounts 200407
Johnston Press is committed to
understanding the needs of readers
and in 2004 the Group commissioned
extensive market research for 65 of
our titles, including 10 of 15 daily
papers. The results of this project
have been positive in terms of
confirming the high degree of
relevance that our titles currently
have to the local communities they
serve as well as demonstrating
unrivalled household penetration 
and readership levels. 
Investment in market research
Ongoing market research also
fulfils another crucial function as it
enables Johnston Press to develop 
a deep understanding of reader
attitudes and specifically how local
needs and tastes are changing over
time. This knowledge is invaluable 
in ensuring that the Group’s portfolio
of existing titles is developed
appropriately and also in identifying
market opportunities for a range of
new publications. 
Accordingly, this understanding 
has resulted in the development of
plans for the launch of new specialist
and lifestyle publications in 2005. 
As well as satisfying the demands 
of local communities and specialist
groups, these development plans 
will ensure that our local markets are
appropriately layered with a range 
of publications that enables Johnston
Press to offer advertisers effective
and targeted platforms through
which to promote their services. 
New titles in 2005
As well as using editorial excellence 
to increase circulation of our existing
publications, we are proactive in using our
deep understanding of our communities’
needs to develop new platforms.
£1 million
spent this year on 
market research  Our 243 titles are printed in 13 regional print
centres.Along with our centralised management
support services and continued investment in
technology, this allows us to benefit from
significant economies of scale.
Johnston Press plc 
Annual Report and Accounts 200409
The vast majority of Johnston Press
titles are now printed in house at one
of 13 regional centres that are
managed centrally by the Group’s
Printing Division. This centralised
management control increases the
efficiency of the Group’s printing
operations as it ensures that specific
titles are produced at the most
appropriate centre thereby maximising
colour revenue potential and the
utilisation of the Group’s total printing
capacity. In addition, the operation 
of a relatively small number of larger
scale printing centres provides the
basis for tight cost control and
excellent operational efficiency. 
Regional printing centres
Johnston Press continues to invest
heavily in further enhancing its printing
capability and in part this investment
has focused on the deployment of
greater revenue generating colour
capacity. The £60 million investment 
in the development of a brand new
facility near Sheffield and the proposal
to spend more than £45 million on 
a similar plant in Portsmouth will
improve the overall efficiency of the
Group’s printing operations.
Johnston Press also continues to
invest significantly in the development
of Group-wide IT systems in order to
consolidate what was once a disparate
range of company-specific systems.
As well as improving levels of
customer care, this investment also
helps drive business efficiency and
productivity. In addition, the
introduction of common systems
facilitates the offer of extended title
packages to advertisers and this 
in turn will drive revenue growth in 
the future. 
Improved efficiency, capacity and value
1 Falkirk
2 Sunderland
3 Hartlepool
4 Leeds 
5 Isle of Man
6 Preston (external)
7 Halifax
8 Scarborough
9 Wakefield
10 Sheffield
11 Northampton
12 Peterborough
13 Portsmouth
13
2
3
8
6
5
7
11
12
9
10
1
£’m
2004
Colour towers at Leeds 
and Sunderland 6.7
Computer-to-plate 
technology 1.8
Computer systems 5.1
Planned 2005
Replacement mailrooms
at Leeds and Peterborough 11.8
Computer systems 6.2
Other Capital Projects
4 Johnston Press plc 
Annual Report and Accounts 2004 10 Johnston Press plc 
Annual Report and Accounts 200411
Chairman’s Statement
Continued progress
2004 was a year of organic growth and continued
progress for Johnston Press. The Group achieved
record results in terms of sales, margins, profits,
earnings per share, dividends and cash generation. 
The continuing success of Johnston Press stems from
a single-minded focus on providing local communities
with news, information and entertainment. The staff 
of Johnston Press have, once again, shown themselves
to be amongst the best in the business and, on behalf 
of the Board and shareholders, I would like to
congratulate them.
Results
Revenues grew in excess of 5% which was more than we
had expected, in part reflecting the success of new products
launched during the year. Tight cost control and some
continuing efficiencies from past acquisitions drove margins
and profits but the positive impact of recent investment in
printing and IT systems also helped. 
Operating profit for 2004 was £177.2 million, up 10%.
Headline earnings per share were 37.96p, up 17%.
Dividend
The Board proposes a final dividend of 4.8p per share,
making a total of 7.2p per share for the year compared to 
6p per share last year. This is an increase of 20%. 
Organic Growth
In recent years, Johnston Press has made a number of
significant acquisitions. In 2004 we did not and all the growth
has come from organic developments. Within our existing
market areas, we have launched a number of new publications
including free newspapers, advertising-only publications and
lifestyle magazines. We have launched a number of locally
focused websites, upgraded our online classified platforms
and invested heavily in new colour printing capacity and IT
systems. During the year, we announced our commitment to
invest more than £60 million in a new print facility in Sheffield
and, in February 2005, we announced a similar initiative
costing more than £45 million at Portsmouth.
We have a clear focus on using investment to improve the
economics of our existing business. 
Roger Parry
Chairman
Chairman’s Statement Strategy
Going forward, our strategy is to build on our strengths as 
a local publisher. Whilst we recognise that there are significant
technology changes going on, particularly in the online area,
we remain convinced that fundamental human behaviour and
human needs are not going to change. As I have said in a
number of previous annual reports, “life is local” and it is this
reality that drives our strategic approach, both online and 
in print. 
We believe it will be possible for us to participate in the
anticipated further consolidation of the local publishing 
industry. Economists and competition experts are increasingly
recognising that, in terms of advertising revenues,
newspapers compete with a variety of media and that, so 
far as plurality of editorial voice is concerned, this can be
achieved just as well, indeed, sometimes far better, under 
a small number of owners than it can under diverse,
fragmented and under-resourced ownership conditions.
Progress
Johnston Press has been serving local communities for
more than 150 years and for most of that time our medium
has been printed paper. In the Group’s early years this was
simple text; later it was enhanced by black and white
photography and, in recent years, by full colour presentations
of text, photography and graphics. Increasingly, websites and
mobile services are becoming an important part of our
offering, both to advertisers and to readers.
Initially we took a very cautious approach to the internet
boom, waiting to see exactly how the technology and human
behaviour would develop. We now have a clear picture of
what we believe is the right way forward for a Group which
serves local communities. 
We are developing a family of websites which have common
technology and functionality but each of which is focused on
the needs of its own local community. These websites enable
us to provide a service of news, information and entertainment,
which supplements our daily and weekly printed publications.
In addition, we have invested significantly in the technology to
offer targeted and effective classified advertising on the web. 
We see web-based classified advertising as both a
complement to, and an enhancement of, traditional print
advertising. Your Board believes that our development of two
mutually supporting media will form a sustainable and robust
business model for the future. 
Johnston Press plc 
Annual Report and Accounts 2004 12
Chairman’s Statement
continued
As I have said in a number 
of previous annual reports,
“life is local” and it is this 
reality that drives our strategic
approach, both online and 
in print Johnston Press plc 
Annual Report and Accounts 200413
Accordingly, we are confident that we have significant
sources of future growth, both through organic development
of our existing franchises and the acquisition of new ones.
Board
I am delighted to be able to announce the appointment of
Les Hinton as an independent non-executive Director. He has
been in the newspaper industry for more than 40 years and,
as Executive Chairman of News International, brings an
extraordinary wealth of publishing experience to Johnston
Press. It is also a great pleasure to announce the appointment
of Danny Cammiade as an executive Director in the role of
Chief Operating Officer. He has made a major contribution 
to the success of Johnston Press and plays a central role in
continuing to drive the business forward.
Your Board consists of five independent non-executives,
two non-executives representing the Johnston family interest,
three executives and myself. Lord Gordon, one of our
independent non-executive directors, will have completed 
9 years’ service at this year’s AGM, but the Board remains
entirely satisfied that he is independent. Johnston Press
remains fully compliant with all aspects of the Combined
Code.
Prospects
Despite the strength of trading in 2004 making for tough
comparisons, looking forward your Board expects to see
another year of growth in advertising and other revenue
streams. We will also continue to invest heavily in editorial
resources, printing, distribution and online technology. These
factors, coupled with the tight management of costs, further
efficiency gains and actions to offset the increase in newsprint
prices, should lead to another year of satisfactory progress
for the Group in 2005. 
Roger PARRY
Chairman
16 March 2005 Johnston Press plc 
Annual Report and Accounts 2004 14 Johnston Press plc 
Annual Report and Accounts 200415
Chief Executive Officer’s Review
Another record set
of results in 2004
Johnston Press produced another record set of
results in 2004, benefiting from our extensive portfolio
of well recognised market leading brands across
numerous local communities around the UK. The year
has witnessed a growing focus throughout the Group 
on the achievement of stronger organic revenue growth
coupled with continuing improvements in business
efficiency through ongoing investments in IT systems.
The results for the year ended 31 December 2004
demonstrate the effectiveness of a strategy which
remains closely focused on our core business of local
community publishing in the UK.
Strategic Overview
The concept of “Life is Local” continues to provide the
underlying strategic logic for Johnston Press. Extensive
research commissioned by the Newspaper Society, the
industry’s trade association, consistently illustrates the
intensely local focus of people’s lives covering a wide spectrum
of activities including work, shopping, leisure and socialising.
Our operations are closely shaped to reflect this important
tendency, serving numerous local communities across the
UK with a variety of print and online publications. In turn,
our business substantially reflects the performance of a myriad
of distinct and separate local economies. The resultant
underpinning drivers which power our activities are consumer
confidence, the property market and employment levels.
With the ongoing satisfactory performance of the UK
economy as a whole, these factors continue to provide 
a solid foundation for our business.
Tim Bowdler
Chief Executive Officer Johnston Press plc 
Annual Report and Accounts 2004 16
Chief Executive Officer’s Review
continued
This has resulted in a high performing core business which
is well placed to achieve further growth. It also provides 
an excellent platform from which to launch new initiatives
whether these are in the form of new print publications,
websites or related local ventures. An important such initiative
at the end of 2004 has been the establishment of a new
publishing division, known as JP Ventures, bringing together
various non-local newspaper businesses including Outbound
Publishing (emigration newspapers and overseas property
magazines), Off Road Publications (Dirt Bike Rider and Trials
& Motorcross News), Letterbox Direct (door-to-door leaflet
delivery), and Days Out UK (leisure guide). It is anticipated
that the resulting heightened focus on these businesses will
drive further opportunities for growth. Already in late 2004, 
we completed the acquisition of Offer Pack, a small business
which specialises in the design and door-to-door distribution
of packaged special offer coupons to promote local retailers
and services.
During the year, we have also launched a large number 
of new publications in pursuit of a strategy which is aimed
at layering our local markets with a range of newspapers,
specialist print publications and local websites. This strategy
will ensure that we are in a position to offer advertisers an
increasing variety of channels to promote their goods and
services to local communities, improving targeting and
maximising market penetration. Noteworthy during 2004
has been the launch of more than 20 lifestyle and specialist
publications, the introduction of six regional editions of Jobs
Today, a new weekly recruitment title branded to mirror our
online jobs site and a similar initiative for regional property
advertising.
The industry structure has remained substantially unchanged
during the past 12 months, with the four largest publishers
accounting for approximately 73% of total copies distributed
or sold. Johnston Press remains fourth largest with about
15% market share. There has been relatively little corporate
activity and few ownership changes, with Johnston Press
making no newspaper acquisitions during the year. However,
this should not be taken to suggest that continued industry
consolidation is unlikely. We firmly believe that there will be
more ownership changes in the future and that further
industry consolidation will be permitted by the regulators,
although the timing of such changes cannot be predicted. 
The disposal of our 33% holding in Two Boroughs Radio
in Burnley was completed during the year. Underlining our
focused approach, this disposal completes our withdrawal
from all the local radio activities which were acquired with
Regional Independent Media Holdings Limited (RIM) in 2002.
The improved use of IT will continue to play a vital part in
the ongoing enhancement of operating performance and
we have invested heavily in IT systems and related hardware,
in order to drive business efficiency and improve customer
service. Hand-in-hand with these IT investments has been
the continued development of our printing capability,
especially with regard to the installation of additional
revenue-earning colour capacity. Whilst our focus remains
on the provision of appropriate print capacity for our own
needs, we have entered into long-term 15-year contracts 
to print News International (NI) titles at our new Sheffield
facility and, conditional upon planning consent, at
Portsmouth. The opportunity to secure such valuable
contracts will benefit the Group financially and in terms 
of enhanced press capability.
The broad geographic spread of our local publishing
activities, together with the sound structure of the Group
which has been developed over many years by a combination
of steady organic improvement and judicious acquisitive
expansion, provide the Group with an excellent foundation
from which to achieve continued growth.
Trading Performance
2004 was a 53-week financial year for Johnston Press and,
in order to enable meaningful comparisons, the figures
quoted in this section are on a like-for-like 52-week basis,
as explained in the Financial Review.
Advertising revenue growth in 2004 was stronger than
expected, ending the year 5.5% ahead, comprising 6.0%
growth in the first half and 5.0% in the second. The
performance in the latter part of the year was particularly
pleasing as the corresponding period’s comparatives were
During the year, we have also
launched a large number of 
new publications in pursuit of 
a strategy which is aimed at
layering our local markets significantly stronger than earlier in the year. The outcome
reflects the benefits of our broad spread of market leading
publications across a widely dispersed geographic base.
With the sole exception of motors’ advertising, the
second half followed the pattern of the first in which every
advertising category grew. This was achieved entirely as 
a result of volume growth, with yields remaining static,
despite the benefit of additional premium-priced colour
advertising and normal rate-card increases. This outcome
reflects the launch of additional lower yielding recruitment
and property publications using repurposed advertising
content, together with the robust growth of property
advertising, the lowest yielding category.
The rate of recruitment advertising growth was strong
throughout, though lower in the second half at 6.6%
compared with 13.3% in the first. This reflects the more
challenging second half comparatives, but demonstrates 
a very satisfying underlying performance. In very broad
terms, growth was stronger in the north of the country 
than in the south, although there were several exceptions 
to the general pattern.
Property advertising had another excellent year with first
and second half growth rates of 4.7% and 15.2% respectively.
The acceleration witnessed in the second half reflects the
need for vendors to work harder in a slowing market place
which also encouraged the house-builders to increase their
advertising exposure. Growth was lower in the South and
South Midlands regions than elsewhere.
After marginal growth of 0.4% in the first half, motors’
advertising declined in the second by 3.0%. This remains
our toughest market sector, adversely affected by continuing
dealer consolidation and a number of initiatives are being
pursued to improve performance. Revenues were patchy
with no particular regional trends.
The Other Classifieds category grew well in both halves
at rates of 3.3% and 5.6% respectively. This category
comprises a variety of advertising sources, including
entertainments, family announcements, public notices 
and general classifieds. Each of these segments grew 
with entertainments and family announcements being the
strongest. There was no particular geographic pattern,
although the south coast performed best. 
Johnston Press plc 
Annual Report and Accounts 200417
JP Ventures
New Publishing division including:
Emigration newspapers and
overseas property magazines
Off road publications
Door-to-door leaflet delivery
“Days Out UK” leisure guide Johnston Press plc 
Annual Report and Accounts 2004 18
Chief Executive Officer’s Review
continued
The rate of growth for display advertising was 2.0% in 
the second half, following an increase of 3.4% in the first. 
The second half comparatives were more difficult due to the
return of heavier supermarket advertising in the corresponding
period last year following the conclusion of the Competition
Commission inquiry into the acquisition of Safeway and a
more general improvement following a lull in activity during
the Iraqi conflict. There were no obvious regional trends.
In overall terms, total advertising revenue growth was
generally stronger in the north of the country than in the
south, with the best increases being achieved by the
Northeast and North of England (Yorkshire) divisions.
However, outside those two regions, there were no 
major variances. 
Operating margins for the Group, before operating
exceptional items, were again ahead of the previous year
with an increase from 33.1% to 34.0% and every division
increased its operating profit. This outcome again demonstrates
the ability of Johnston Press to convert modest revenue growth
into a much stronger profit performance and reflects excellent
cost control, aided by ongoing investments in IT systems,
with the additional benefit of stable newsprint prices.
Operating Review
Even greater emphasis is now being placed on the
achievement of organic revenue growth. Advertising
directors from around the Group meet regularly to review
best practice and to discuss the development of new
revenue generating ideas. This process has been reinforced
by the recent appointment of an experienced senior
executive to oversee these efforts. The Johnston Press
intranet based ADS4U system, which provides an extensive
database of advertising ideas and creative copy, is
available to all of our advertising staff and is now being
used extensively to generate additional revenues.
During the year, we have also launched an unprecedented
number of new publications. Amongst these we have
introduced 14 lifestyle publications. Being high quality
glossy colour magazines, these have enabled us to attract
advertisers who would not normally use our newspaper
titles and, in turn, this has added value to the newspapers
into which these magazines are inserted.
We have also launched a number of specialist publications
aimed at specific market segments. Examples include two
annual magazines launched in the Northwest targeted
respectively at the youth fashion market and teenagers in
New
Publications Johnston Press plc 
Annual Report and Accounts 200419
the 16-18 age bracket. Following further launches, South
Yorkshire Newspapers, based in Doncaster, now has 7 monthly
free newspapers dedicated to small communities such as
Rossington and Bawtry. This format almost literally brings
local news to the parish-pump and also provides the
smallest local advertisers with a viable platform. We are
seeking to extend this initiative elsewhere around the Group.
A new weekly free newspaper was launched in Milton
Keynes to supplement the previous twice-weekly publishing
portfolio in order to meet the demands of this rapidly
growing city. In pursuit of significant revenue growth, we
have almost trebled the pagination and distribution of our
Lincoln-based free newspaper from its previous levels.
Another important development during 2004 was 
the launch of a number of classified advertising print
publications across wider geographic regions than any 
one of our individual newspapers serve. Perhaps the most
important of these have been the six regional recruitment
titles “Jobs Today”, replicating our online jobs content and
reinforcing our web-based recruitment brand. These titles
extend the job advertisers’ reach and generate additional
cover price revenues. A similar initiative in respect of our
property advertising under the “Exclusive Homes” brand
provides a platform for higher priced properties for sale in
various of the regions in which we publish.
We are also working more closely than ever with Mediaforce,
the independent national sales house which represents all
Johnston Press titles with national and regional advertising
agencies. Mediaforce have offices in London, Birmingham,
Manchester and Edinburgh and have represented Johnston
Press for a number of years. Together with Mediaforce, we
are making more presentations to agencies and potential
new advertisers in an effort to bring new business into our
titles. Successes in 2004 included Procter & Gamble,
Nestlé and Jet 2, one of several low-cost airlines now using
the regional press. We also launched a series of focused
Group-wide advertising supplements to attract new national
business, the first of these being dedicated to Euro 2004.
Distinct from print publications, we have also achieved
strong growth from a number of related local events and
services. The delivery of leaflets door-to-door, often in
conjunction with our own free newspapers, is an important
and growing revenue source, accounting for £13.3 million 
in the year, representing a growth of 14%. In order to
capitalise better on this opportunity, we are gradually
switching the management of this activity from our local
companies to Letterbox Direct, a dedicated leaflet delivery
operation acquired as part of RIM. Revenues from local
exhibitions, including such events as job fairs, motor shows
and wedding fairs have increased by 4% and provide an
opportunity for greater growth around the Group. Reader
Holidays, which we package and promote through our
newspapers, also grew by 4% and we have created several
centres of excellence to service other companies around
the Group where this growth opportunity has not as yet been
maximised. Premium line services, primarily for dating
purposes, grew at 5% and, in response to changing patterns
of usage, we are developing an online service to complement
the current print-based offer.
Hand-in-hand with our focus on achieving greater organic
revenue growth are our efforts to maximise the considerable
opportunities which are available through investment in IT
systems and related hardware. The appointment of a Group
Head of IT, following our acquisition of RIM in 2002, has
brought much increased impetus and improved coordination
to these efforts. It has resulted in much greater standardisation
across the Group of the hardware and software we employ,
which, in turn, has brought purchasing, operational and
support benefits. Working closely with our preferred
suppliers of advertising, editorial and sales ledger systems,
we have continued a programme of replacing ageing and
disparate systems with common region-wide platforms.
During the year, this has involved new installations in the
majority of our regions. These installations have enabled 
us to consolidate a number of our backroom pre-press
production operations with consequent cost savings. 
A new newspaper sales system was installed in the South
of England division during the year and will form the basis
of an extended common system across the entire Group
which will be rolled out during the current year. To facilitate
customer service, efficiency and the transfer of advertising
Another important development
during 2004 was the launch of 
a number of classified advertising
print publications across wider
geographic regions than any one
of our individual newspapers serve Johnston Press plc 
Annual Report and Accounts 2004 20
Chief Executive Officer’s Review
continued
content to our websites, we have introduced new software
throughout the Group to deal with property advertising. 
In an increasing number of locations, this system is now
being used by our estate agent customers to upload their
entire property database which, in turn, has resulted in
greater accuracy, later deadlines and increased online
content. During the year, we also invested in a new payroll
and HR system which will give greatly enhanced information
to assist management around the Group. Major improvements
are being made to our Group communications infrastructure,
including the introduction of voice-over IP telephony.
The Group’s approach to Health & Safety has been
overhauled and upgraded during the year with the introduction
of strengthened operating and reporting procedures. Although
already at a good standard, this has resulted in a number 
of additional measures being taken to improve further the
Group’s performance in this critically important area. There
were very few reportable accidents during the year with
none involving serious injury.
During 2004, we celebrated several important milestones,
perhaps most notably the 250th anniversary of the Yorkshire
Post. Other important celebrations included the 150th
anniversaries of the Whitby Gazette, the Morpeth Herald
and Northumberland Gazette, the Grantham Journal, the
Harborough Mail and the Derbyshire Times. The latter
involved a dinner for many customers, staff and local
personalities at Chatsworth House and we are grateful to
the Duke of Devonshire for permitting us to use this
wonderful venue. A number of our newspapers were also
recognised for their excellence, including the Southern
Reporter as “Best Paid-for Weekly Newspaper in Scotland”,
for the third successive year, and the Worksop Guardian as
“Campaigning Newspaper of the Year All weekly paid-for
newspapers”.
Electronic Publishing
Considerable progress has again been made in terms 
of the growth and development of our web-based activities.
The Group now has 182 local websites, an increase of 20
over the course of the year. Total page impressions grew 
by 34% to reach 20 million per month. Total online
revenues increased by 17% to £6.3 million.
Sheffield Press Project
10 acre site adjacent to M1
Modern high speed press
100% colour capacity
State-of-the-art equipment Printing
Further significant progress has been made by our Printing
Division in improving the quality, reliability and timeliness of
our printing operations. Almost every Johnston Press title is
now printed in-house, or at Broughton Printers as part of
our long-term agreement with the Express Newspapers
Group. With our own titles utilising a greater share of total
capacity due to increased pagination and colour growth,
third-party print revenue fell slightly when compared with
the previous year. Costs have been well controlled and
operating efficiencies further improved.
Undoubtedly, the most exciting development in 2004 
was the project to build a major new printing centre at
Dinnington on the M1, outside Sheffield. The purchase of
the site was concluded at the year-end and ground works
started at the beginning of 2005. We were particularly
pleased to announce, in October, a 15-year agreement to
print News International (NI) titles at our new facility. This
resulted in an increase to the size of the building and press
such that the total project cost will now be in excess of 
£60 million. In February of this year, we announced a similar
arrangement with NI, conditional upon receiving planning
consent, for the redevelopment of our Portsmouth facility, 
a project which is expected to cost in excess of £45 million.
The NI contracts will make a valuable contribution to overall
profitability and the resultant printing capacity will greatly
enhance the Group’s capability, bringing total colour
availability to in excess of 80% of capacity.
The projects to install additional colour towers at Leeds
and Sunderland were completed on budget and to schedule,
as was the installation of additional colour on a number of
the existing Sunderland units. The introduction of computer-
to-plate technology at the same sites was also successfully
completed with the planned operational improvements
being achieved. We continue to review our printing
capability to ensure that we are able to meet current and
anticipated customer needs.
Newsprint prices during 2004 remained unchanged from
the previous year but have increased from the beginning of
2005. Measures are already in place which will partially
mitigate the impact.
Johnston Press plc 
Annual Report and Accounts 200421
During the year, our three classified sites, Jobs Today,
Motors Today and Property Today, were relaunched after a
complete overhaul and upgrade. At any point in time, we
now typically carry 12,000 jobs, 200,000 cars and 70,000
properties for sale. The functionality and performance of
each site has been substantially improved with the aim of
achieving best-in-class status. We have also continued the
process of building local brand awareness. Of the many
enhancements made, perhaps the most noteworthy is the
launch of a CV matching service on our Jobs Today site
which is already generating additional revenue from an
expanding database of CVs. The launch of Yorkshire Jobs
Today, a regional jobs site, has also proved very successful
with site visits and revenues growing strongly.
The success of our classified websites is very dependent
upon the quality of data obtained from advertisers. In order
to improve this, we have developed and rolled out a software
interface with our front-end advertising systems, providing
our sales staff with a template which facilitates the collection
of structured data. Using this enhanced customer information,
coupled with similarly improved data about readers, we
have introduced a customer relations management (CRM)
programme across the Group, which over time will result in
better customer reception and service, match our offers
more closely to customers’ interests and create opportunities
for new revenue streams.
We plan to increase the level of investment in our
electronic publishing activities and for these to make a
growing contribution to overall Group performance. We
have expanded the specialist team based in Peterborough
who are responsible for the maintenance and development
of our sites. At local company level, we also have a number
of specialist staff to assist in the commercial development
of our sites which are very much an integral part of the
publishing portfolio of each centre.
We plan to increase the level 
of investment in our electronic
publishing activities and for these
to make a growing contribution
to overall Group performance Johnston Press plc 
Annual Report and Accounts 2004 22
Chief Executive Officer’s Review
continued
Circulations
For the year as a whole, total circulation revenues increased
by 1.3%, comprising rises of 1.7% and 0.9% in the first
and second halves respectively. We continue to pursue a
conservative policy towards cover prices with 89 of our 119
paid-for titles being increased during 2004. Circulations of
our weekly titles remain satisfactory although, after seven
consecutive years of growth, there was a flattening of
performance. After an increase of 0.3% in the first half,
weekly circulations fell by 0.6% in the second. Our weekly
titles continue to receive investment in terms of additional
colour, pagination and improved content and design.
Approximately half of the Group’s 243 titles are paid-for
weeklies, more than are owned by any other UK regional
newspaper publisher.
As a result of a decision in the second half to remove
almost all remaining bulk sales from the reported figures,
the declared ABC performance for our evening titles showed
an average decline of 6.8%. The underlying figure represents
a fall of 4.2%. This followed a decline of 4.9% in the first
half, which equated to a reduction of 3.6% after allowing
for a planned reduction in bulks. Behind those disappointing
headline figures, there were some notably improved
performances including a second-half increase of 0.9% 
at the Hartlepool Mail and for the Scarborough Evening
News, which just fell short of equalling last year’s sale.
During 2004, we commissioned an extensive market
research exercise, at a total cost of almost £1 million, 
to research 65 of our titles including 10 of our 15 daily
newspapers. The results to date have been very encouraging
in terms of indicated readership levels and the percentage
of people who turn to our titles first when seeking items to
purchase. For example, 81% of the people in Blackpool
turn to the Blackpool Gazette first when looking for a job
and 89% turn to it first for properties. We also commissioned
separate market research exercises for two of our dailies,
the Sheffield Star and the Yorkshire Post, to probe in detail
the attitudes of readers towards the titles and to understand
better how our content may need to be adapted to meet
changing needs and tastes. The approach used in Sheffield
will be used as a template for similar research which we will
carry out for some of our other daily titles.
Following its development in Sunderland, all of our daily
centres around the Group are now utilising a database
driven approach to data capture to improve our canvassing
activities and reader retention. The Group’s Daily Newspaper
Sales Forum, which is tasked with driving improvements in
newspaper sales performance, has also made good
progress in identifying and encouraging best practice. 
This has resulted in beneficial changes to our working
relationship with newsagents, better use of point of sale
materials, more effective promotional support and a clearer
understanding of the effect of differing publishing times on
the sale. In addition, we have increased the number of
added value supplements which are being incorporated into
various of our daily titles in an effort to improve the
attractiveness of the newspaper package on each day of
the week, thereby encouraging an increase in purchasing
frequency. Whilst none of these actions will result in a rapid
turnaround, we remain confident that they will contribute to
an improvement in longer-term performance.
Content
The Johnston Press editorial policy guidelines enshrine
the right of editors to determine both content and their
editorial approach free from management interference,
subject only to the broadest guidance concerning the
general standards which we expect our newspapers to
reflect, including observance of the Press Complaints
Commission’s Code of Practice. Our commitment to
editorial freedom has been reinforced by the establishment
of the Editorial Review Group. This group, which includes 
a number of daily and weekly editors, has a wide ranging
remit which includes an objective to raise editorial standards,
to provide expert advice on the recruitment and training of
editors, to act as a guardian of editorial freedom and to
provide expert advice to Group management on editorial
and related issues.
During the course of 2004, our newspapers covered a
vast range of stories and a few illustrative examples follow.
Additionally, the Corporate Social Responsibility Statement
on pages 41 to 45 provides details of the numerous ways in
which our newspapers serve their local communities; in fact,
Editorial policy guidelines
enshrine the right of editors 
to determine both content and 
their editorial approach free 
from management interference Johnston Press plc 
Annual Report and Accounts 200423
a substantial part of our editorial coverage is devoted to
important local issues, campaigns on behalf of communities
and to supporting good causes and charitable
organisations in their fundraising efforts. Indeed, many of
our employees are actively involved in this charitable work,
a perfect example of which was the many and varied ways
they raised funds for the Tsunami disaster appeals.
Investigative journalism continues to play an important
part in the role of local newspapers. The Motherwell Times
exposed a security blunder which resulted in a prisoner
walking free, despite facing further charges. The Yorkshire
Post’s investigation into the activities of the BNP persuaded
the Prime Minister to condemn the party publicly for the
first time. A series of Sheffield Star reports on policing has
been welcomed by the Chief Constable of South Yorkshire
as a valuable contribution to the formulation of future
policing policies.
Campaigning journalism lies at the very heart of our
editorial agenda and forms a vital part of newspaper content.
In Portsmouth, The News, through “Last Chance for Justice”,
continues to seek a specific Arctic Medal for those men
who took part in the Arctic campaign of World War II. The
Northumberland Gazette campaigned strongly against an
elected Northeast Regional Assembly. The Cumbernauld
News supported a Gulf War veterans’ successful campaign
for a public inquiry into the causes and effects of so-called
Gulf War Syndrome. The Glenrothes Gazette has
successfully campaigned for a War Memorial to be erected
following the death in Iraq of two Black Watch soldiers from
the town. The Yorkshire Evening Post helped to persuade
the Home Secretary to close a loophole in the law which
allowed juveniles who cause misery to remain anonymous.
However, the vast majority of our campaigns are devoted to
vital local concerns over aspects which impinge directly on
peoples’ everyday lives. Our newspapers also support
numerous appeals, many of which tend to be associated
with health-related issues. However, there are a vast number
of others, including, in 2004, a Yorkshire Post appeal which
raised £70,000 from readers in just 27 days to help keep
the Flying Scotsman, the world’s most famous steam
locomotive, in Yorkshire.
Many important national stories start life in the local press.
Perhaps the most notable in 2004 was the Yorkshire Evening
Post exclusive concerning the death of Sergeant Steven
Roberts, the first British soldier to be killed in Iraq. Features
editor, Anne Pickles, won the trust of Sergeant Roberts’
widow whose story resulted in a series of exclusive features
Campaigning
Journalism Johnston Press plc 
Annual Report and Accounts 2004 24
Chief Executive Officer’s Review
continued
including details of equipment shortages revealed in a tape
of Sergeant Roberts’ last phone conversation home and
which ultimately contributed to his death. Following the
resultant extensive national news coverage, the story was
voted “UK Scoop of the Year” in the 2004 Regional Press
Awards and Anne was also named UK Feature Writer of 
the Year. Of many other national stories in which our
newspapers had a leading involvement, two that stand out 
were the part played by the Morecambe Visitor in the
Morecambe Bay cockling disaster and the leading role
played by the Northampton Chronicle & Echo concerning
the future of the British Grand Prix at Silverstone, which
included a series of exclusives.
Throughout Johnston Press, editors play an active part in
their communities, often being involved on local committees
and interest groups. We regard this as an essential part of
their role, typified, for example, by the editor of the
Cumbernauld News, who chaired a series of public
meetings to discuss a possible upgrade to the A80 trunk
road. Similarly, we foster close relations with schools and,
in Leeds and Portsmouth, we have fully equipped on-site
classrooms which are used by school children to create
their own newspapers. Our titles also recognise local
achievement in a variety of fields, including sport, business
and community involvement, often initiating or supporting
celebratory events such as the Pride in Peterborough
Community Awards. 
However, newspapers are not only about weighty and
serious matters; lighter, entertaining stories also have their
place. The Diss Express’ efforts for the re-housing of a feral
chicken population, made homeless by a supermarket
development, under the campaign slogan “Home to Rooster”,
was picked up by the News of the World with a sub-title
“Give a Cock a Home”. And, who knows, the Ghanaian
downhill skier, training for the 2006 Winter Olympics at the
Milton Keynes SnoZone and dubbed “The Snow Leopard”
by the Citizen, may yet become the next “Eddie the Eagle”.
Serving communities for many years,
anniversary issues Johnston Press plc 
Annual Report and Accounts 200425
Organisation and People
Our Head Office management team remained unchanged
throughout the year. Since the year-end, Henry Faure
Walker has been appointed to head the newly established
JP Ventures Division and has been succeeded as Group
Business Development Manager by Simon Kennedy, a
business graduate with experience in the Telecoms sector. 
I am particularly pleased with the announcement of Danny
Cammiade’s appointment to the Board as Chief Operating
Officer, well deserved recognition of his considerable
contribution to the success of the Group.
At the divisional level, there has been only one new
appointment with Nick Mills taking over the managing
director’s role at the East Midlands division, replacing Mike
Hutchby, who moved to fill the equivalent position at the
South Yorkshire North Midlands division. At company level,
there have been a number of important appointments
including several at managing director level from outside
the Group, bringing valuable fresh talent into the business.
The Commercial Trainee Leadership Programme has now
been in place for more than 12 months and already this 
has resulted in several junior management appointments.
The scheme will be complemented by a Graduate Trainee
Leadership Programme to be launched in the current year.
Our broad ranging suite of training programmes has been
enhanced and extended to include a comprehensive training
programme for newspaper sales staff as well as editorial
and advertising management diplomas. Similarly, our Senior
Management Development Programme continues to play
an important role in growing senior managers for the future
and a number of successful participants have been
appointed to new positions during 2004.
We have taken a number of steps to ensure that we meet
our objectives of being a caring and responsible employer,
including the introduction of defined people values which
emphasise open, straightforward communication, integrity,
continued success and the importance of recognising
everyone’s contribution. As outlined earlier, we have also
made considerable improvements in our approach to Health
& Safety and in developing a culture which recognises the
absolute priority of such matters. We have made real
progress in improving communications and consultation
with all our employees. This has involved the introduction of
an employees’ version of the annual report and accounts,
team briefings, company results’ briefings and employee
forums. Progress has been made in our approach to diversity
including the introduction of a Johnston Press bursary to
assist people from deprived or ethnic backgrounds to
undertake training in journalism. A total of four bursaries
were awarded in 2004.
Recognising the importance of all our staff and the huge
contribution they make to the continued success of our
business, it is particularly pleasing that the Share Incentive
Plan introduced in 2003 will, for the second successive year,
result in all qualifying employees, representing the substantial
majority of those we employ, receiving free shares in
Johnston Press.
To address ongoing funding shortfalls and to facilitate 
the merging of the Johnston Press and RIM defined benefit
pension schemes, we injected a further £5.8 million prior to
the year-end. As part of this exercise, all employees who
choose to be in the Company’s pension arrangements will
have four times’ salary life cover. Paternity leave of two weeks’
pay at 90% of basic salary has been extended throughout
the Group and we have introduced childcare vouchers.
These measures, along with others not mentioned, illustrate
the importance we place on remaining a competitive and
caring employer.
Tim BOWDLER
Chief Executive Officer
16 March 2005
We have taken a number of steps
to ensure that we meet our
objectives of being a caring and
responsible employer Johnston Press plc 
Annual Report and Accounts 2004 26 Johnston Press plc 
Annual Report and Accounts 200427
Financial Review
Financially 2004
was an excellent year
Overview
Financially 2004 was an excellent
year for Johnston Press. The Group
delivered significant improvements 
in cash flow, operating margins,
earnings per share and return on
capital employed. This, combined 
with good growth on the top line and 
a substantial reduction in our net debt,
leaves the Group well placed moving
into 2005.
Financial Review
In comparing performance between
2004 and 2003, it should be noted that
2004 has been a 53 week financial
year and, where relevant, in order to
help the reader make like-for-like
comparisons, we have included
performance figures for 52 weeks.
2004 2004 2004 2003
53 weeks 53rd week 52 weeks
£’m £’m £’m £’m
Advertising revenues 394.4 2.7 391.7 371.2
Newspaper sales 69.6 1.1 68.5 67.6
Contract printing 19.3 0.2 19.1 20.2
Other revenues 35.5 0.1 35.4 32.8
Total revenues 518.8 4.1 514.7 491.8
Costs 340.8 1.1 339.7 328.8
Operating profit* 178.0 3.0 175.0 163.0
Operating margin 34.3% 34.0% 33.1%
Stuart Paterson
Chief Financial Officer
The revenues and costs incurred in the 53rd week are only those that are 
truly incremental for that period and ignore all other monthly costs such as
depreciation, salaries and lease payments.
A
B
D
C
E
A Scotland 7%
B Northeast 7%
C North 23%
D Northwest 11%
E N Midlands/S Yorkshire 15%
F East Midlands 9%
G South Midlands 15%
H South 13%
F
G
H
Turnover by Region
* pre-exceptionals Revenues
Although total advertising revenues for the Group grew
by 6.2%, 0.7% of this growth was due to the 53rd week,
which contributed advertising revenues of £2.7m.
Deducting this results in the like-for-like growth of 5.5%.
The figures quoted in the rest of this section all relate 
to a like-for-like period of 52 weeks.
Advertising revenues for the Group by category were 
as follows:
2004 2003 Increase
£m £m %
Employment 117.2 106.5 10.1
Property 56.0 51.1 9.6
Motors 47.4 47.9 (1.2)
Other classified 60.6 58.1 4.4
Total classified 281.2 263.6 6.7
Display 110.5 107.6 2.7
Total advertising revenue 391.7 371.2 5.5
This growth was predominantly volume driven, with
advertising volumes up by 5.1% and yields up by only
0.4%. Yield growth was restricted by some of our organic
revenue growth initiatives which have repurposed classified
content into other publications in the local/regional market
at lower yields but with relatively little incremental cost.
Adjusting for these initiatives, the underlying yield increase
was 1.3%. This lower than normal increase reflects the high
growth in property, our lowest yielding category, offsetting
Johnston Press plc 
Annual Report and Accounts 2004 28
annual rate card increases and a continued growth in the
level of colour advertising which commands a premium,
made possible by our ongoing investment in colour
capability.
The strongest two categories were employment and
property, but there was also good growth in other classified
and display advertising. Display advertising, after a
disappointing year in 2003, returned to growth with a strong
performance from those businesses that place their advertising
through national agencies such as the supermarkets and the
Central Office of Information. Motors had a more difficult year
with the continued consolidation in the sector and a reduction
in the volume of cars being sold privately.
The Chief Executive Officer’s Review on pages 15 to 25
provides a summary of advertising performance by division.
The table below shows a breakdown of the advertising
revenues for the two half years. The rate of growth in
advertising revenues was slower in the second half of the
year principally because of the stronger comparatives in
2003 when advertising revenues picked up post the 
Iraqi conflict.
Circulation revenues rose by £0.9m (1.3%) reflecting
limited cover price increases more than offsetting the
reduced circulation of our daily titles.
Contract print revenues were down 5.8% on 2003. There
were two main factors behind this, one being a reduction in
the capacity available for third party work due to increased
Group volumes and the second being a reduction in the
level of work going through the old heatset press in
Portsmouth, which we propose to close during the course 
of 2005.
Financial Review
continued
Half year to 31 December Half year to 30 June
26 Weeks 26 Weeks
2004 2003 Increase 2004 2003 Increase
£m £m % £m £m %
Employment 55.5 52.1 6.6 61.7 54.4 13.3
Property 27.9 24.2 15.2 28.1 26.9 4.7
Motors 22.7 23.3 (3.0) 24.7 24.6 0.4
Other classified 30.2 28.7 5.6 30.4 29.4 3.3
Total classified 136.3 128.3 6.2 144.9 135.3 7.1
Display 55.8 54.7 2.0 54.7 52.9 3.4
Total advertising revenue 192.1 183.0 5.0 199.6 188.2 6.0 Johnston Press plc 
Annual Report and Accounts 200429
Total income from the other revenue categories, which
include new media, leaflets and sundry revenues, showed
good growth, up by 8.2%. This was pleasing as a number 
of Group initiatives were focused on this area. New media
revenues were up by 17.0% driven by employment
advertising and the upgrading of all of our classified platforms.
The profit contribution from our new media activities was
£3.6m. Leaflet sales had another very good year up 14.1%.
Within sundry revenues, good performance from exhibitions,
sponsorship and the syndication of newspaper stories were
the main factors behind the 4.6% growth.
Margins
The good growth in revenues, when combined with our
ongoing emphasis on investment which creates business
efficiencies and cost control, meant that margins improved
again during the year. For the Group, operating margin on a
like-for-like basis, as indicated on page 27, improved from
33.1% to 34.0%. Every division increased its operating
profit in absolute terms. All of the ex-Regional Independent
Media Ltd (RIM) businesses are fully integrated into the
Group operating divisions without reducing previously
reported operating margins, further evidence of the synergies
obtained from these businesses which had a combined
margin at acquisition of 24.5%.
After newsprint prices being flat in 2004, following 2 years 
of reductions in 2002 and 2003, there has been an increase in
2005. Plans are already well developed and being implemented
that will help the Group reduce the impact of this increase.
Operating Exceptionals
As has been the practice of the Group in recent periods,
costs or revenues that are material and out of the normal
course of operations are highlighted separately in the
columnar style profit and loss account. These include the
costs of redundancies, restructuring and gains or losses on
the disposal of fixed assets. In total this year, they amounted
to £0.8m, net of a £1.0m profit made on the disposal of the
Group’s interest in the commercial radio station in Burnley,
2BR, which it acquired as part of RIM. In addition, the Group
wrote off a further £0.7m from its investment cost in Mirago
plc, the European internet search engine.
Cash Flow/Net Debt
The operating cash flow and cash conversion of the
business continued to be strong with the operating cash
flow 109% of the operating profit. As a result of this positive
cash flow, net debt reduced by £95m, closing the year at
£328m. The reduction was £15m greater than that experienced
last year due to increased profitability, reduced interest
charges and reduced payments into the Group’s pension
funds. This was achieved despite an increase in corporation
tax payments after the utilisation of tax losses in 2003
inherited from RIM and a one off payment of £5.8m being
paid (see below) to facilitate the merger of the RIM Pension
Plan into the Johnston Press Pension Plan. After the
introduction of the Group’s Share Incentive Plan, shares
were purchased to the value of £1.5m, based on the
Company achieving Board determined targets for 2003.
The regionalisation of the credit control activities that
resulted in increased debtors at the end of 2003 has now
been completed according to plan and a reduction in
debtor levels also contributed to the positive cash flow in
the year. In 2005, as the expenditure on the new Sheffield
print facility ramps up, it is expected that total capital
expenditure will be in excess of £65m.
Interest cover for the year was 6.8 times.
Financial Investments
As the Group is entirely UK based and the US Dollar
based element of the private placement has been swapped
back into Sterling, the main financial risk that the Group
faces is associated with interest rates.
The Group policy is that borrowings should be arranged
at the lowest possible cost and with covenants within
which it can comfortably operate. The policy also requires
that a minimum of 50% of the debt should be hedged
against potential movements in interest rates whilst the
balance is kept under continuous review. At 31 December
2004, £250m of the debt was hedged or placed at an
effective rate of 5.2% for an average period of 4 years.
At the end of the year, the Directors reviewed the carrying
value of the Group’s investments. The shares in Sunderland
AFC have been disposed of post year end and the Group
now no longer holds any listed investments. The unlisted
investment in Mirago was written down by £0.7m (2003
£0.7m) based on the Directors’ valuation.
Pension Funds/FRS17
At 31 December 2004, the Group achieved its objective
of merging the RIM pension schemes into the Johnston
Press Pension Plan (JPPP). All of the RIM defined
contribution members (active, deferred and pensioners)
moved across but unfortunately, because of legislation
regarding protected rights, only the active members of the
defined benefit section could transfer. The pensioners and
deferred members have remained in a much reduced RIM
scheme which the Group has committed to continue
funding. To facilitate the merger of the final salary schemes,
the Company made a one off payment of £5.8m to equalise 
the ongoing funding levels and to ensure that no member
was disadvantaged by the combination. Despite this
contribution and the continued recovery in the stock
markets, the total FRS17 deficit on the Group’s schemes
increased by £5.2m, gross of tax, to £70.6m. The main
reasons behind this increase were lengthening life
expectancy and a reduction in the discount rate used 
to calculate the present value of future liabilities. Johnston Press plc 
Annual Report and Accounts 2004 30
Financial Review
continued
Full tri-annual valuations are being completed at the time
of writing and will result in new funding arrangements being
put in place before the end of the year.
The Group is still reporting under the transitional
arrangements of FRS17 pending full implementation of 
that standard or International Accounting Standard 19 
in 2005.
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 no change to the pension provision.
Accounting Standards
The Group is preparing for the implementation of
International Financial Reporting Standards (IFRS) and
International Accounting Standards (IAS) from 2005. 
As these standards have been released they have been
considered to assess the potential level of impact on 
the Group.
The key areas of potential impact identified by the Group
to date in adopting IFRS are discussed below. These areas
are in addition to the presentational changes that are
required by the Standards. All figures quoted are for
illustrative purposes only to assist in the understanding of
the potential impact of moving to IFRS. 
IAS 19 ‘Employee benefits’ – IAS 19 will be similar to 
the requirements under full implementation of FRS17. The
impact of full adoption of FRS17 is detailed in note 24 of the
financial statements. In terms of presentation, the pension
liability of £70.6 million and related deferred tax asset of
£21.2 million will be shown separately in the balance sheet.
The charge to the profit and loss account in 2004 would
have been £5.9 million, which is an increase of £0.4 million
over the SSAP 24 defined benefit scheme charge.
IFRS 2 ‘Share-based payments’ – new profit and loss
account charges will be incurred in respect of employee
share awards and options based on their fair value. The
Group has estimated that this would have resulted in an
additional charge against profits of £1.1 million in 2004,
cumulative £1.5 million, which will be included in the
restated results when reporting the Group’s position as 
at 31 December 2005. The majority of the charge relates 
to the Save-As-You-Earn Scheme, which is open to all
qualifying employees and which allows shares to be
purchased at a discount to the market price. The tax 
effect is excluded from the above estimate.
IAS 38 ‘Intangible assets’ – the publishing titles held by
the Group as intangible assets meet the recognition criteria
under IAS 38 and will therefore continue to be held as
intangible assets. Impairment reviews will continue to be
performed on an annual basis as the Group’s current policy
of charging no amortisation will also continue under IAS.
IAS 10 ‘Events after the balance sheet date’ – dividends
in respect of a year can only be recorded when they are
declared and approved. The impact on the 2004 results of
applying this change would be to reverse out the 2004 final
proposed dividend of £13.7 million and replacing it with the
2003 final proposed dividend of £11.4 million, it being
approved and paid during 2004. This would have increased
shareholders’ funds by £2.3 million at 31 December 2004.
IAS 28 ‘Investments in associates’ – requires the
Group’s share of the profit of associated companies to be
shown net of tax and the impact in 2004 was £0.1 million,
reducing the profit and tax by this amount.
IAS 32 & 39 ‘Financial instrument measurement and
reporting’ – In accordance with the Group policy to enter
into financial instruments only for hedging purposes, it is
not expected that any material impact will arise from the
application of hedge accounting and the treatment of any
portion of the financial instrument that is ineffective.
Share Incentive Plan
The Share Incentive Plan introduced in January 2003 was
continued into 2004 for all qualifying employees. The 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 target for 2004
determined by the Board, shares to the value of £1.5m
(2003 £1.5m) will be distributed to participating employees
based on their contracted hours of employment.
Dividends and Earnings per Share
Headline earnings per share at 37.96p were 17.3% up on
2003. Subject to approval at the Annual General Meeting on
29 April 2005, the total dividend per share for the year will
be 7.2p, an increase of 20%. As was announced at the time
of the interim dividend, this increase represents something
of a catch-up due to the fact that, over the last three years,
the growth in earnings of the Group has been greater than
the growth in dividends resulting in an increasing level of
dividend cover.
Stuart PATERSON
Chief Financial Officer
16 March 2005 Johnston Press plc 
Annual Report and Accounts 200431
Management Committee
Divisional Managing Directors
Stuart McPherson
Scotland
Gary Fearon
Northeast
Chris Green
North
Margaret Hilton
Northwest
Mike Hutchby
North Midlands & South Yorkshire
Nick Mills
East Midlands
Chris Pennock
South Midlands
Michael Johnston
South
Graham Gould 
IT
John Bradshaw
Electronic Publishing
David Crow
Printing
Henry Faure Walker
JP Ventures
Group Management Committee
From left to right: Simon Kennedy, Business Development Manager; Danny Cammiade, Chief Operating Officer; 
Tim Bowdler, Chief Executive Officer; Stuart Paterson, Chief Financial Officer; Malcolm Vickers, Director of Human Resources;
Richard Cooper, Company Secretary.
. Johnston Press plc 
Annual Report and Accounts 2004 32
R G Parry
Non-Executive Chairman (51)
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
P E B Cawdron 
Non-Executive (61) 
Joined the Board in 1998.
Senior Independent Director. 
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 
Non-Executive (68)
Joined the Board in 1996. 
Chairman of Remuneration Committee.
Member of Nomination Committee.
Chairman of Scottish Radio Holdings plc,
previously its Chief Executive. 
Non-Executive Director of Active Capital
Trust plc. Former Chairman of the Scottish
Tourist Board and a member of the Scottish
Development Agency.
jgordon@johnstonpress.co.uk
M A King
Non-Executive (44)
Joined the Board in 2003. 
Member of the Remuneration and Audit
Committees. Former Managing Director,
Country Operations Europe, at Yahoo! UK Ltd,
with extensive experience in the media sector.
Non-Executive Director of Capita Group plc,
IMD plc and Prince’s Trust Trading Board.
mking@johnstonpress.co.uk
S J Waugh
Non-Executive (47) 
Joined the Board in 2003. 
Member of Audit Committee. 
Former Group Marketing Director 
of Centrica PLC. Director of ISBA, 
Life Fellow of Marketing Society and
Institute of Direct Marketing.
swaugh@johnstonpress.co.uk
L F Hinton
Non-Executive (61) 
Joined the Board in 2005. 
Executive Chairman of News International
Ltd. Member of the News Corporation
Executive Committee. Director of the Press
Association in Britain and Chairman of the
Newspaper and Magazine Publishing
Industry’s Code of Practice Committee.
lhinton@johnstonpress.co.uk
Board of Directors Johnston Press plc 
Annual Report and Accounts 200433
T J Bowdler, BSc, MBA
Chief Executive Officer (57)
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. Former
President of the Newspaper Society.
tbowdler@johnstonpress.co.uk
S R Paterson, MA, CA 
Chief Financial Officer (47)
Joined the Board in 2001. 
Chartered Accountant.
Former Finance Director of Aggreko plc. 
Non-Executive Director of Mirago plc.
spaterson@johnstonpress.co.uk
D Cammiade
Chief Operating Officer (44) 
Joined the Board in 2005. 
Joined the Group in 1992 through its
acquisition of TR Beckett Ltd. Appointed
Managing Director of West Sussex County
Times Ltd in 1994 and held various
Divisional Managing Director roles until
appointed Director of Operations in 2001. 
dcammiade@johnstonpress.co.uk
F P M Johnston, CBE
Non-Executive (69) 
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
H C M Johnston 
Non-Executive (58)
Joined the Board in 1971. 
Former Managing Director Johnston
(Falkirk) Ltd.
hjohnston@johnstonpress.co.uk
P R Cooper, ACA
Company Secretary (48)
Appointed Company Secretary in 1996. 
Chartered Accountant. 
Former Finance Director of Yorkshire
Weekly Newspaper Group Limited. 
rcooper@johnstonpress.co.uk Group’s Newspaper Titles
SCOTLAND
Johnston (Falkirk)
The Falkirk Herald W
Linlithgowshire Journal & Gazette W
Cumbernauld News 
& Kilsyth Chronicle W
Carluke & Lanark Gazette W
Falkirk, Linlithgow 
& Grangemouth Advertiser F
Cumbernauld & Kilsyth Advertiser F
The Arbroath Herald 
& Angus County Advertiser W
Kirkintilloch & Bishopbriggs Herald W
Milngavie & Bearsden Herald W
Motherwell Times & Bellshill Speaker W
Strathkelvin Advertiser F
Glasgow East News F
Strachan & Livingston
Fife Free Press W
East Fife Mail W
Glenrothes Gazette W
Fife Herald & St. Andrews Citizen W
Fife Leader South F
Fife Leader North F
Kirkcaldy Herald F
The Tweeddale Press Group
Southern Reporter W
Berwickshire News 
& East Lothian Herald W
Berwick Advertiser W
Berwick Gazette F
Hawick News 
& Scottish Border Chronicle W
Selkirk Weekend Advertiser W
East Lothian Times F
Midlothian Times F
Peebles Times F
Midlothian Advertiser W
East Lothian News W
ISLE OF MAN
Isle of Man Newspapers
Isle of Man Courier F
Isle of Man Examiner W
Manx Independent W
NORTHEAST
Northeast Press
Hartlepool Mail E
Shields Gazette E
Sunderland Echo E
Hartlepool Star F
Seaham & Houghton Star F
Morpeth Herald W
News Post Leader F
North Shields 
& Whitley Bay News Guardian F
Northumberland Gazette W
Peterlee Star F
South Tyne Star F
Sunderland Star F
Washington Star F
NORTH
Yorkshire Post Newspapers
Yorkshire Post M
Yorkshire Evening Post E
Leeds Weekly News F
Pudsey Times F
Wharfe Valley Times F
Ackrill Newspapers
Harrogate Advertiser W
Knaresborough Post W
Northallerton Times W
Pateley Bridge Times W
Ripon Gazette W
Wetherby News W
North Yorkshire News F
Herald & Champion 
Shopper Motor Guide F
The Halifax Courier
Evening Courier E
Brighouse Echo W
Todmorden News W
Hebden Bridge Times W
Calderdale News F
Yorkshire Weekly Newspaper Group
Wakefield Express W
Pontefract & Castleford Express W
Selby Times W
Morley Advertiser W
Wakefield Extra Series 
(inc. Rothwell and Oulton Extra) F
Hemsworth & South Elmsall Express F
Pontefract & Castleford Extra F
Ossett & Horbury Observer F
Selby Chronicle F
Dewsbury Reporter W
Batley News W
Morley Observer W
Spenborough Guardian W
The Weekly Advertiser F
Yorkshire Regional Newspapers
Scarborough Evening News E
The Malton & Pickering Mercury W
Filey Mercury W
Whitby Gazette W
Bridlington Free Press W
Driffield Times W
Beverly Guardian F
Bridlington Gazette & Herald F
Driffield Post W
Pocklington Post W
Trader & Weekly News F
NORTHWEST 
Lancashire Evening Post
Lancashire Evening Post E
Wigan Evening Post E
Chorley Guardian W
Garstang Courier W
Preston & Leyland Reporter F
Longridge News W
Lancaster & Morecambe Newspapers
Lancaster Guardian W
Morecambe Visitor Series W
Lakeland Echo F
The Reporter F
Lancashire Publications 
Wigan Observer W
St Helens, Prescot 
& Knowsley Reporter F
Wigan Reporter 
& Wigan Reporter and Property Scene F
Leigh Reporter F
Ashton News F
Standish Village News F
Blackpool Gazette & Herald
The Gazette E
Lytham St Annes Express W
Blackpool Reporter F
Fleetwood Weekly News W
East Lancashire Newspapers
Burnley Express W
Clitheroe Advertiser W
Nelson Leader W
The Reporter F
The Valley F
NORTH MIDLANDS 
& SOUTH YORKSHIRE
Sheffield Newspapers
Sheffield Star E
Doncaster Star E
Sheffield Telegraph W
Sheffield Weekly Gazette F
Sheffield Journal F
Johnston Press plc 
Annual Report and Accounts 2004 34 Wilfred Edmunds
Derbyshire Times W
Buxton Advertiser W
Ripley & Heanor News W
Ilkeston Advertiser W
Matlock Mercury W
Eastwood & Kimberley Advertiser W
Chesterfield Express F
Chesterfield Advertiser F
Alfreton & Ripley Echo F
Dronfield Advertiser F
Bolsover Advertiser F
High Peak Courier F
Ilkeston Shopper F
Eastwood Shopper F
Belper News W
Peak Times F
Eckington Leader F
Buxton Times F
North Notts Newspapers
Hucknall Dispatch W
Worksop Guardian W
Mansfield Chad W
Mansfield & Ashfield Observer F
Alfreton Chad F
Ashfield Chad W
Dinnington Guardian F
Retford Guardian F
Worksop Trader F
Retford & Bawtry Trader F
Dinnington & Maltby Trader F
South Yorkshire Newspapers
Doncaster Free Press W
Doncaster Advertiser F
South Yorkshire Times W
Goole, Thorne & Howden Courier F
Epworth Bells W
Gainsborough Standard W
Gainsborough News F
EAST MIDLANDS 
East Midlands Newspapers
Peterborough Evening Telegraph E
Peterborough Citizen F
Peterborough on Sunday F
Town Crier West Cambridgeshire Series F
Fenland Citizen F
Lynn News W
Norfolk Citizen F
Welland Valley Newspapers
Stamford Mercury W
Spalding Guardian W
Lincs Free Press W
Harborough Mail W
Melton Times W
Grantham Journal W
Stamford Citizen F
Melton Citizen F
Grantham Citizen F
Lincolnshire Newspapers
Lincoln Chronicle F
Boston Standard W
Louth Leader W
Sleaford Standard W
Skegness Standard W
Market Rasen Mail W
Horncastle News W
Lincolnshire Citizen F
Anglia Newspapers
Bury Free Press W
Suffolk Free Press W
Diss Express W
Newmarket Journal W
Haverhill Echo W
Bury Citizen F
SOUTH MIDLANDS
Northamptonshire Newspapers
Chronicle & Echo E
Northants Evening Telegraph E
Northampton Mercury F
Northants Citizen F
Northants on Sunday F
Premier Newspapers
Milton Keynes Citizen F
MK Review F
Leighton Buzzard Citizen F
Leighton Buzzard Observer W
Tuesday Citizen F
Central Counties Newspapers
Bucks Herald W
Buckingham & Winslow Advertiser W
Hemel Gazette W
Bucks Advertiser F
Bicester Review F
Hemel Herald Express F
Bedfordshire Newspapers
Luton Herald & Post F
Luton News W
Bedfordshire Times & Citizen F
Biggleswade Chronicle W
Dunstable Gazette W
Heart of England Newspapers
Banbury Guardian W
Banbury Citizen F
Rugby Advertiser W
Rugby Review F
Daventry Express W
Leamington Courier Series W
Leamington Review F
Kenilworth Weekly News W
SOUTH
Portsmouth Publishing & Printing
The News (Portsmouth) E
Bognor Guardian Series F
Guardian Homefinder F
Chichester, Bognor Regis 
and Midhurst & Petworth Observer W
Ems Valley Gazette F
Hayling Islander F
Portsmouth Journal Series F
Petersfield & Bordon Post W
West Sussex Gazette W
Worthing Advertiser F
Shoreham Herald W
Worthing Guardian F
Littlehampton Gazette W
Worthing Herald W
T. R. Beckett
Hastings Observer W
Bexhill Observer W
Rye & Battle Observer W
Eastbourne Herald W
Eastbourne Gazette
(inc. Hailsham and Seaford Gazettes) W
Hastings and Bexhill News F
Eastbourne Advertiser F
Sussex Newspapers
West Sussex County Times W
Mid Sussex Times W
Crawley Observer W
Horsham Advertiser F
Mid Sussex Citizen F
Weekend Herald F
Sussex Express W
Johnston Press plc 
Annual Report and Accounts 200435
E - Evening paid-for newspaper W - Weekly paid-for newspaper M - Morning paid-for newspaper F - Free newspaper Websites by Division
SCOTLAND
falkirktoday.co.uk
fifenow.co.uk
kilsythtoday.co.uk
cumbernauldtoday.co.uk
kirkintillochtoday.co.uk
linlithgowtoday.co.uk
isleofmantoday.co.im
berwicktoday.co.uk
berwickshiretoday.co.uk
borderstoday.co.uk
hawicktoday.co.uk
selkirktoday.co.uk
eastlothiantoday.co.uk
milngavietoday.co.uk
NORTHEAST
blyth-wansbecktoday.co.uk
hartlepooltoday.co.uk
morpethtoday.co.uk
northtynesidetoday.co.uk
northumberlandtoday.co.uk
southtynesidetoday.co.uk
sunderlandtoday.co.uk
peterleetoday.co.uk
NORTH
leedstoday.net
yorkshiretoday.co.uk
knaresboroughtoday.co.uk
nidderdaletoday.co.uk
northallertontoday.co.uk
ripontoday.co.uk
wetherbytoday.co.uk
harrogatetoday.co.uk
pontefractandcastlefordtoday .co.uk
selbytoday.co.uk
wakefieldtoday.co.uk
batleytoday.co.uk
birstalltoday.co.uk
dewsburytoday.co.uk
mirfieldtoday.co.uk
morleytoday.co.uk
spenboroughtoday.co.uk
halifaxtoday.co.uk
todmordentoday.co.uk
hebdenbridgetoday.co.uk
brighousetoday.co.uk
beverleytoday.co.uk
bridlingtontoday.co.uk
driffieldtoday.co.uk
pocklingtontoday.co.uk
scarboroughtoday.co.uk
whitbytoday.co.uk
maltontoday.co.uk
yeller.co.uk
yorkshirejobstoday.co.uk
equestriantoday.co.uk
lancashirejobstoday.co.uk
NORTHWEST
blackpooltoday.co.uk
fleetwoodtoday.co.uk
lythamtoday.co.uk
chorleytoday.co.uk
leylandtoday.co.uk
longridgetoday.co.uk
garstangtoday.co.uk
prestontoday.net
leightoday.co.uk
sthelenstoday.net
wigantoday.net
lancastertoday.co.uk
lakelandtoday.co.uk
morecambetoday.co.uk
burnleytoday.co.uk
clitheroetoday.co.uk
pendletoday.co.uk
studentstoday.co.uk
NORTH MIDLANDS 
SOUTH YORKSHIRE
ashfieldtoday.co.uk
belpertoday.co.uk
buxtontoday.co.uk
chesterfieldtoday.co.uk
dinningtontoday.co.uk
eastwoodtoday.co.uk
hucknalltoday.co.uk
ilkestontoday.co.uk
mansfieldtoday.co.uk
matlocktoday.co.uk
ollertontoday.co.uk
retfordtoday.co.uk
ripleytoday.co.uk
gainsboroughtoday.co.uk
rotherhamtoday.co.uk
barnsleytoday.co.uk
bakewelltoday.co.uk
worksoptoday.co.uk
dearne today.co.uk
doncastertoday.co.uk
gooletoday.co.uk
sheffieldtoday.co.uk
anglerstoday.co.uk
EAST MIDLANDS 
fenlandtoday.co.uk
peterboroughtoday.co.uk
bostontoday.co.uk
granthamtoday.co.uk
harboroughtoday.co.uk
lincolntoday.co.uk
horncastletoday.co.uk
louthtoday.co.uk
marketrasentoday.co.uk
meltonmowbraytoday.co.uk
skegnesstoday.co.uk
sleafordtoday.co.uk
spaldingtoday.co.uk
stamfordtoday.co.uk
burystedmundstoday.co.uk
kingslynntoday.co.uk
sudburytoday.co.uk
haverhilltoday.co.uk
disstoday.co.uk
huntingdontoday.co.uk
stivestoday.co.uk
stneotstoday.co.uk
newmarkettoday.co.uk
peterboroughjobstoday.co.uk
classifiedgold.co.uk
SOUTH MIDLANDS
aylesburytoday.co.uk
thametoday.co.uk
brackleytoday.co.uk
bicestertoday.co.uk
buckinghamtoday.co.uk
hemelhempsteadtoday.co.uk
banburytoday.co.uk
daventrytoday.co.uk
kenilworthtoday.co.uk
leamingtonspatoday.co.uk
warwicktoday.co.uk
rugbytoday.co.uk
corbytoday.co.uk
ketteringtoday.co.uk
northamptontoday.co.uk
rushdentoday.co.uk
northantsnews.com
wellingboroughtoday.co.uk
bedfordtoday.co.uk
biggleswadetoday.co.uk
lutontoday.co.uk
dunstabletoday.co.uk
leightonbuzzardonline.co.uk
miltonkeynestoday.co.uk
tringtoday.co.uk
southmidlandsjobstoday.co.uk
free-adstoday.co.uk
SOUTH
bognortoday.co.uk
chichester.co.uk
haylingtoday.co.uk
littlehamptontoday.co.uk
petersfieldtoday.co.uk
portsmouth.co.uk
shorehamtoday.co.uk
worthingtoday.co.uk
hailshamtoday.co.uk
crawleytoday.co.uk
horshamtoday.co.uk
lewestoday.co.uk
midsussextoday.co.uk
seafordtoday.co.uk
bexhilltoday.co.uk
eastbournetoday.co.uk
hastingstoday.co.uk
ryeandbattletoday.co.uk
newhaventoday.co.uk
uckfieldtoday.co.uk
sussexjobstoday.co.uk
midhurstandpetworth.co.uk
JP VENTURES
daysoutuk.com
tmxnews.co.uk
dirtbikerider.co.uk
outboundpublishing.com
trialsworld.co.uk
letterboxdirect.co.uk
GROUP SITES
motorstoday.co.uk
propertytoday.co.uk
jobstoday.co.uk
findabusinesstoday.co.uk
photostoday.co.uk
johnstonpress.co.uk
cvmatch.net
Johnston Press plc 
Annual Report and Accounts 2004 36 Johnston Press plc 
Annual Report and Accounts 200437
Corporate Governance
The Company is committed to the
principles of Corporate Governance
contained in the Combined Code on
Corporate Governance 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
set out in Section 1 of the Combined Code
on Corporate Governance issued by the
Financial Reporting Council in July 2003.
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 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 five
occasions and the Audit and Nomination
Committees three times each.
The Board also sets the strategic aims and
objectives of the Group, ensuring that the
Group has sufficient financial and human
resources to meet its objectives. The
Board also sets the Group’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 each year 
is wholly devoted to strategy and to the
development of a plan for the long term
growth of the Group. 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
printing press requirements, editorial
policy, market research, electronic
publishing 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 Officer, Chief Financial Officer
and Chief Operating Officer 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,
Mr P E B Cawdron as Senior Independent
Director and Mr T J Bowdler as the
Company’s Chief Executive Officer. 
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.
Until the Annual General Meeting, the
Chairman of the Remuneration Committee
is Lord Gordon of Strathblane, when he
will be succeeded by Mr S J Waugh. 
With regard to the Audit and Nomination
Committees, these are chaired by
Mr P E B Cawdron, who is a chartered
accountant, and Mr R G Parry respectively.
Board Attendance
During 2004, every director attended all
meetings with the exception that Mr H C
M Johnston was unable to attend the
September meeting. In advance of the
formal Board meeting in September, led by
the Senior Independent Director, the Non-
Executive Directors met and, as part of the
agenda of that meeting, appraised the
performance of the Chairman. The Board
has also met during the year without the
Executive Directors being present.
The meetings of the Remuneration, 
Audit and Nomination Committees were
attended by all members either personally
or by telephone.
Board Balance
Of the Company’s current eleven
Directors, three 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 Lord Gordon of
Strathblane is independent despite serving
on the Board for nine years in April 2005.
He is highly respected for his wealth of
media experience and his totally impartial
and professional approach to his role. 
He plans to retire from the Board at the
2007 Annual General Meeting when he 
will be 70.
At least half the Board, excluding the
Chairman, comprises Non-Executive
Directors determined by the Board to be
independent. Johnston Press plc 
Annual Report and Accounts 2004 38
Corporate Governance
Continued
Nomination Committee
The Nomination Committee is chaired 
by Mr R G Parry, and also comprises 
Mr P E B Cawdron and Lord Gordon of
Strathblane. 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.
The Board evaluation process, conducted 
in the early part of 2004, highlighted two
issues relating to the composition of the
Board. The first was a reduction in the
newspaper publishing experience within 
the Non-Executive Directors following the
retirement of Sir Harry Roche, and the
second was the need to consider another
Executive Director. These two matters were
referred to the Nomination Committee.
The Committee met in the Summer of 2004
to consider the balance of skills on the
Board at that time. Its conclusion, based on
the retirement of Sir Harry Roche and the
planned retirement of Lord Gordon in 2007,
was that two new Non-Executive Directors
were required and an additional Executive
Director. The Committee prepared a detailed
brief which was approved by the Board.
External consultants were appointed to seek
suitable candidates based on the agreed
brief who were interviewed by the
Committee. The recommended candidate
for one of the Non-Executive posts, 
Mr L Hinton, met the whole Board and was
appointed a Non-Executive Director on 
16 March 2005. He will retire at the Annual
General Meeting and will be seeking election.
The search continues for another Non-
Executive Director with the required skill set.
The Board evaluation process in early
2005 identified unanimous support for the
appointment of Mr Cammiade as an
Executive Director and he was appointed
on 16 March 2005. He will retire at the
Annual General Meeting and will be
seeking election.
Information and Professional
Development
The Chairman has arranged a detailed
induction process for the new Directors,
including meetings and discussions with
advisers and senior management where
appropriate, 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. There was a particular emphasis
this year on a scoring system for
assessing individual, Committee and
Board performance. The questionnaires
were submitted to the Company Secretary
who prepared a summary of the
conclusions which was presented and
discussed at the Board meeting in January
2005. 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 where the Board receives
a presentation from the local managing
director and a tour of the business.
Individual directors attend a range of
seminars presented by professionals
throughout the year.
Board Re-election
It is the policy of the Board that all directors
are subject to re-election at the first Annual
General Meeting after their appointment
and thereafter every three years.
The Chairman has, following the formal
evaluation process described above,
considered the performance of the
directors subject to election and re-
election at the 2005 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 at the end of the year 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; and
• state whether applicable accounting
standards have been followed.
After making enquiries, the Directors have a
reasonable expectation that the Company
and the Group have adequate resources to
continue in operational existence for the Johnston Press plc 
Annual Report and Accounts 200439
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 an 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 Officer, 
Chief Financial Officer and Chief
Operating Officer 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 individual
business 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 Executives
and the Group has a clear organisational
structure which includes appropriate
delegation of authority. The Executive
Directors ensure that regular contact is
maintained with all Senior Executives.
The Group Management Committee,
comprising the Executive Directors, the
Company Secretary, the Director of
Human Resources and the Business
Development Manager, meets every
month to review financial and
operational issues as well as the 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. This includes 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. This work is
strongly supported by the Group’s
central accounting centre which ensures
a consistent and compliant approach to
the processing of transactions and
ensures a uniform control process
across the Group’s operations.
• Review by the Audit Committee of the
conclusions of the Group’s external
auditors in their annual audit and review
of the half-year results. 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. A risk matrix is
reviewed on a regular basis both in the
local operations and by the Group
Management Committee. One risk is
discussed at every monthly executive
meeting both locally and at Group level.
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 and address the risks identified.
During 2004, the Group Management
Committee has focused particularly on
organic revenue growth opportunities, an
editorial handbook, production workflow
best practice, management succession,
updated disaster recovery plans in all
operations, health and safety
reporting/training and disability access.
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
• Commercial and competition
• Technology
• Property management
• Human resources including pension
administration, disability and health 
and safety 
• Environmental issues and energy
management
• Legal and regulatory compliance
• Business continuity. Johnston Press plc 
Annual Report and Accounts 2004 40
Corporate Governance
Continued
At its meeting on 28 January 2005, 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.
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 Audit Committee is chaired 
by Mr P E B Cawdron, a chartered
accountant, and also includes 
Mrs M A King and Mr S J Waugh. All are
independent Non-Executive Directors.
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 Group. It also
reviews the summary of the Group’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 each 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 Group are
attended by the Chief Financial Officer and
the Company Secretary, who acts as
Secretary to the Committee, with minutes
being circulated to all Board members.
The Chairman, Chief Executive Officer and
Chief Operating Officer 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. The
Chairman also has a private meeting with
the audit partner during the course of the
year to discuss any relevant issues.
At the meeting to review the Annual
Report and Accounts, the Committee
formally considers the non-audit services
provided by the Group’s external auditors
and the effectiveness of the audit process.
These are fully explored and discussed
and the Committee is satisfied that the
objectivity and independence of the
external audit is safeguarded. Any material
fees are discussed with the Audit
Committee before being committed.
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 a mutual understanding of objectives
between the Company and its institutional
shareholders. As part of this process, the
Chief Executive Officer and Chief Financial
Officer 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 and the Senior Independent
Director personally contact 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 matters.
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 plc 
Annual Report and Accounts 200441
Corporate Social Responsibility
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 Operating Officer.
Each local Managing Director has
responsibility within their operation for
relationships with customers, suppliers 
and the community. These relationships are
subject to review by the Chief Operating
Officer.
As part of the main Board’s review of
Corporate Governance at its January 2005
meeting, the Directors also reviewed the
Corporate Social Responsibility Policy.
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, job
vacancies are advertised on the Group
intranet and internal notice boards so that
it maximises the number of positions filled
from within the Group and creates
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
employment contracts reflects this
principle. To assist people from deprived or
ethnic backgrounds to undertake training in
journalism, the Group has introduced a
bursary scheme.
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
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
them in employment contracts. 
The Group Code of Ethics specifically
requires adherence to all legal
requirements. It has a clear policy and
procedure for addressing issues such as
bribery, corruption, conflicts of interest,
espionage and the giving and receiving of
gifts. The Group opposes all forms of
oppression and upholds the principles of
sound human rights.
An acceptable use policy has been
developed for all of the Group’s assets,
including but not restricted to computer
equipment, email facilities and use of the
Internet. This policy is required to be
signed by every employee.
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 is
incorporated within this report detailing
some of the many community orientated
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
generally the first point of contact for any
issues of this nature.
Specific responsibility for environmental
issues has been delegated to the Chief
Financial Officer.
assisted. Expert advice is taken on the
needs of disabled employees and special
equipment is provided where appropriate.
The Group has also formulated a Disability
Access policy which has been added to
our policy and procedures manual.
Accordingly, the Group has undertaken
access audits of all of its premises prior to
the year end to determine what work is
required to be undertaken to ensure that it
can either remove, modify, avoid or
circumvent all potential barriers to access
for disabled customers who wish to
interact with our businesses, whether in
person or online. Our training courses for
front counter staff have also been updated
so that all our customer facing employees
can deal with disabled readers or
advertisers in an appropriate manner. 
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. The commercial leadership training
programme, which was instigated in 2003,
seeks to identify the highest calibre
candidates, from both internal and external
sources, and to ensure that the business is
not constrained in the future by a lack of
new talent. The programme has been
developed further in 2004 with additional
individuals being identified and recruited.
Coupled with the extensive range of skill
based training provided by the Group,
these initiatives are aimed at enabling staff
to make their best possible contribution to
the organisation’s success.
In 2004, the Group has introduced defined
people values which emphasise open,
straightforward communication, integrity,
continued success and the importance of
recognising every employee’s contribution.
In addition, employee forums have been
launched at each operating centre. Johnston Press plc 
Annual Report and Accounts 2004 42
Group personnel policies are designed to
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 and notice
boards with a newsletter being published
to coincide with the publication of the
Annual Report and Accounts. The Group
operates a number of share schemes as
outlined in the Directors’ Remuneration
Report on pages 46 to 51.
Community Involvement
Johnston Press newspapers and websites
are at the heart of charitable fund-raising
and community initiatives. Our titles set
community agendas, campaign on a whole
host of important issues, and lead the way
in making those areas better places in
which to live and work. For many people,
the local newspaper is a welcome friend; a
leading member of the community always
keen to support them by being an integral
part of their daily lives.
They are also the major source of local
news – breaking exclusive stories that
national newspapers, TV, radio and
websites can only follow up and covering
issues of local interest which receive little or
no coverage elsewhere.
In the majority of cases, our community
focused newspapers have been around for
a long time; and as mentioned in the Chief
Executive Officer’s Review, a number
celebrated significant anniversaries during
the year, most notably the 250th of the
Yorkshire Post.
The Lynn News was at the forefront of
celebrations in King’s Lynn to mark the
800th anniversary of the town receiving a
Royal charter, presenting a bound copy of
a special historic supplement to the chief
guest, HRH The Duke of Kent.
Our daily titles campaigned on a wide
range of issues. The News, Portsmouth,
obtained national television exposure as it
challenged the Government to award a
specific Arctic Medal for Second World
War veterans. Northampton’s Chronicle &
Echo led an appeal for £1.4m in support of
a hospice, the Northamptonshire Evening
Telegraph campaigned for tougher
sentences for death crash drivers after a
teenager was killed and the Sheffield Star
lobbied councillors over traffic gridlock. In
Peterborough, the Evening Telegraph ran a
‘Make it Happen’ campaign to make sure
urgent projects received cash support.
One of the many campaigns conducted by
the Yorkshire Evening Post resulted in the
Government approving the opening of a
children’s hospital in Leeds. In Blackpool,
The Gazette prompted action to make it
illegal for under-18s to buy knives. Military
campaigns were mounted by the Shields
Gazette to award a gallantry medal to a
soldier killed in Iraq and by the Lancashire
Evening Post to preserve the threatened
Lancashire Regiment. The Halifax Evening
Courier also campaigned to save the Duke
of Wellington’s Regiment from MOD
cutbacks. Elsewhere in Yorkshire, the
Scarborough Evening News launched a
loyalty card scheme to support 120 local
businesses, restaurants and shops.
Health issues were at the centre of a
number of campaigns. The Fenland Citizen,
backed by a petition from readers, saved 
a local hospital from closure. The Midhurst
and Petworth Observer mounted a similar
campaign and the Crawley Observer led a
successful initiative to have hospital after-
hours emergency services re-instated after
they had been axed. As a result of a year-
long campaign, the Banbury Guardian
raised a 30,000 strong petition against a
hospital closure and in Hemel Hempstead,
the Gazette encouraged thousands of
readers to join hands around a hospital 
site to demonstrate their concern over
proposed cutbacks.
In Milton Keynes, the Citizen spearheaded
a £1.5m appeal for a cancer care unit and
a Bury Free Press campaign raised money
to buy a scanner for a special baby care
unit. Readers of the Burnley Express and
Nelson Leader also donated £58,000 to
support a hospice; the Wigan Observer is
leading a fund-raising effort for a children’s
casualty department in the town; the
Dewsbury Reporter is playing a key role in
raising funds for laser equipment and
Harrogate Hospital now has an MRI
scanner thanks to help from The
Advertiser. Readers of the Sussex Express
donated £27,000 as part of a local child
leukaemia fund-raiser organised by the
paper. In Scotland, the Fife Free Press
campaigned to save a local hospital and
the Cumbernauld News also fought
proposed health cuts.
Campaigns to make communities better
places in which to live were organised by
many of our newspapers – including the
Driffield Times which ran ‘We’re Proud of
Driffield’. The Wakefield Express teamed 
up with a bank to ‘Make a Difference’. 
The Worksop Guardian spearheaded a
campaign waging war on drug related
crime – working with police to produce a
rogues’ gallery of offenders. An anti-drugs
campaign was also run by the Sunderland
Echo.
The Midlothian Advertiser, Southern
Reporter, Berwickshire News and Berwick
Advertiser joined forces to fight the closure
of rural schools in Midlothian, the Borders
and North Northumberland. The Wigan
Observer also organised opposition to the
axing of a special needs school.
The Garstang Courier backed efforts to
organise a community clean up campaign.
In Hartlepool, lifeguards were restored to
beaches after a campaign by the Mail. In
Morecambe, Glen Cooper, the Editor of
The Visitor, is to receive an award from the
RNLI for launching the ‘Home for the Hover
Appeal’, a fundraising activity which
includes a calendar sold through our local
high street office.
Many of our titles organise local
ceremonies to honour good deeds in their
communities, The West Sussex County
Times, Louth Leader and Skegness
Standard were just three titles that
honoured community ‘heroes’. 
Corporate Social Responsibility
Continued Johnston Press plc 
Annual Report and Accounts 200443
The Spalding Guardian, linking with local
Rotary members, organised a major
sponsored walk raising cash for 40
different charities. The Clitheroe Advertiser
campaigned for a pedestrian crossing on 
a busy road following the death of a
pensioner. The Knaresborough Post
supported a campaign to improve and
refurbish a theatre and the nearby
Wetherby News campaigned for
concessionary bus fares for pensioners.
The majority of our titles organised
Christmas appeals for a wide range 
of community organisations and many 
also sponsored charities with publicity to
ensure they received extra support from
the public. One example is the Mansfield
Chad, which in 20 years of backing 
various charitable organisations has 
raised more than £1.2 million. Meanwhile,
the Eastbourne Herald’s Christmas care
campaign raised £25,000 for charity
groups.
Individual and often heart-rending cases of
illness are also given prominence by our
newspapers in an effort to support local
communities. The Suffolk Free Press
organised fund raising for an eight-year-old
boy with a rare genetic disorder. The
Shields Gazette supported another good
cause – raising funds to help a child
cancer sufferer. The Chorley Guardian’s
major success during 2004 was to raise
money for the ‘Smile for Emily’ appeal,
raising money for patients at a cancer 
care centre.
Overseas causes also received support
through campaigns in a number of our
titles – not least the Tsunami disaster at the
end of the year. A large number of our
newspapers organised appeals as well as
helping desperate families seeking
information about missing relatives.
The Bognor Guardian and Chichester
Journal organised a ‘love in a box scheme’
for underprivileged children in the Balkans
and Ukraine.
Our newspapers led the way in breaking
big national news stories. Many of these
were followed up by national newspapers –
a number of them major exclusives. The
Yorkshire Evening Post exposé on the death
of Sgt Steven Roberts in Iraq made national
headlines for several days and rocked the
Government, the Shields Gazette broke the
story of the local council which stripped the
branches off conker trees to stop children
throwing sticks into them. The Sunderland
Echo revealed how special staff had been
brought into a school to show children how
to use a knife and fork. The St Andrews
Citizen got a Royal scoop, which was
followed up by all of the nationals – a 
major interview with Prince William who
is studying at St Andrews University.
The Lancashire Evening Post confirmed
that the alleged Iraq torture pictures, which
turned out to be faked, had been taken at
a Territorial Army base in Preston. Their
‘Stop the Peddlers of Death’ campaign,
attempting to close ‘suicide chatrooms’ on
the internet has received the personal
backing of the Prime Minister. The weekly
Fenland Citizen was first with the story that
Tony Martin – the farmer jailed for shooting
dead a burglar at his home – had received
a £7,000 electricity bill, run up by police
guarding his home. The arrest of a senior
judge for child pornography offences was
first revealed by the Portsmouth News, and
the Eastbourne Herald broke the story that
a teenager, sent home from hospital with
painkillers seven times after complaining of
feeling unwell, was in fact suffering from
cancer.
No event was too trivial for our newspapers
to tackle. The Selkirk Weekend Advertiser,
one of the Group’s smallest papers, found
itself scooping the nation’s biggest daily
papers to reveal the name of a local girl
who was going to be a Big Brother
contestant.
Besides the cash donations reported on
page 52, the Group has supported
fundraising campaigns which have raised
over £4.7m in 2004. In addition free space
to promote similar campaigns has been
provided and this has averaged 27 pages
per week across its titles.
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. 
During 2004, the Group also introduced a
Sales Charter into every one of its
operations to ensure that our customers
and advertisers are always dealt with in a
fair and equitable manner and the terms of
trade are published in the Group’s
newspapers.
Environmental Policy
The Group acknowledges that the
protection of the environment is one of its
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
Combined Code on Corporate Governance.
Work was started in 2002 by independent
environmental risk consultants to develop a
scoring methodology and audit programme
to facilitate the ongoing monitoring and
control of our policies and procedures.
Extensive training has been carried out and
internal audits of environmental impacts are
now produced, in addition, audits by the
external independent consultants have Johnston Press plc 
Annual Report and Accounts 2004 44
Corporate Social Responsibility
Continued
commenced to verify the internal reviews
and will continue on a rolling basis.
Detailed reports are produced after each
visit and the implementation of all
recommendations is monitored by
management.
The Group continues to benefit from its
investment in more energy efficient
equipment as well as the time and effort 
put into the monitoring and control of energy
consumption. The equipment introduced 
for this control has enabled the Group to
continue to benefit from rebates against 
the Climate Change Levy Tax. External
consultants are used to monitor and further
facilitate a more efficient use of energy.
On a full year basis the Group’s power
costs decreased by 0.6% despite price
increases from energy suppliers. In terms
of energy consumption, both electricity 
and gas showed significant decreases
notwithstanding the increased levels of
throughput associated with business 
levels in 2004.
As can be seen from table 1 below, the
Group made significant reductions in the
consumption per tonne of throughput at
our print centres which further demonstrates
the improved efficiency of the new printing
equipment.
The increase in water consumption is
entirely volume related and on a m
3
/tonne
basis there is again a good reduction.
For the first time the Group has undertaken
a review of its motors fleet and the details
are shown in table 2 below.
The Group continues to make excellent
progress in achieving the target set out in
its Energy Management Policy, which was
adopted in 2003, for a 7% reduction in
consumption over the period to 2010. 
In fact, electricity consumption since 2002
is down by 3.2% and adjusted for volume
throughput the print centres have resulted
in a 10.8% reduction. Gas consumption in
the same period is down by 7.1% and
adjusted for volume throughput, the print
centres have achieved a 21.8% reduction.
Budgets for 2005 have been set to
encompass a further 1% reduction in
consumption.
The slight increase in the fleet was mainly
due to certain transport activities being
taken in-house, which were previously
undertaken by contractors, in an effort to
improve customer service. Despite the fleet
increasing by 35 vehicles, the CO
2
rating of
the fleet was flat and the average vehicle
rating showed a decrease of 1.7%.
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.
Table 1 - Consumption of energy on a like-for-like basis in 2004
2004 2003 % 2002 %
Electricity
- kWh 46,662,532 47,558,773 -1.9 48,195,619 -1.3
- print centres kWh/tonne 258.0 274.6 -6.0 289.0 -5.0
Gas
- kWh 31,564,320 33,974,515 -7.1 33,970,873 —
- print centres kWh/tonne 164.5 201.9 -18.5 210.4 -4.0
Water
- m
3
123,923 118,751 +4.4 125,309 -5.2
- print centres m
3
/tonne 0.61 0.66 -7.6 0.75 -12.0
Table 2 - Motor vehicle data
2004 2003 %
Total Fleet (No of vehicles) 1,852 1,817 +1.9
Total Fleet CO
2
rating 325,237 325,223 —
Average CO
2
rating 176 179 -1.7 Johnston Press plc 
Annual Report and Accounts 200445
Newsprint
As part of its ongoing commitment, as
agreed with the Government, the industry,
through the Newspaper Society, has
continued to raise the target for the
recycled content of newsprint used in the
production of UK newspapers. Against a
target of 65%, the actual figure achieved
was 68.6%, well on schedule to hit the
target of 70% in 2006. This will be helped
by the new de-inking and recycling facility
at UPM’s Shotton Mill in North Wales.
Newspapers cannot be recycled indefinitely
due to the process requiring some virgin fibre
to maintain paper strength. All virgin fibre
comes from renewable managed softwood
coniferous forests, which themselves are
carefully monitored and certified.
Waste Packaging
The Group adheres to the requirements of
the Producer Responsibility Obligations
(Packaging Waste) Regulations 1997. In
2003, the Group employed an industry
recognised recycler to handle process
waste and all non-paper waste is now
handled through them. This has been a
very successful operation encompassing
safe removal of waste with a transparent
audit trail and an ISO 14001 accreditation.
In addition, the paper-based waste is now
removed and recycled through a group-
wide arrangement with one of our major
newsprint suppliers. Companies with no
printing facilities are only required to
account for any packaging done prior to
delivery to the customer.
The Group is committed to ensure that its
recycled newsprint goes into the
production of new newsprint and random
audits confirm this position.
All categories of waste are now measured
and monitored and systems are in
operation, including an independent audit,
to ensure that all waste is correctly
disposed of.
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 them. Johnston Press plc 
Annual Report and Accounts 2004 46
Directors’ Remuneration Report
This report has been prepared in
accordance with the Directors’
Remuneration Report Regulations 2002. 
It 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 2004 comprised
two other independent Non-Executive
Directors, Mr P E B Cawdron and 
Mrs M A King. It is required to meet at least
annually and as necessary. During the
period it met on five occasions, two
meetings being held by telephone. All its
members were present for each meeting.
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 2004. 
Lord Gordon has decided to step down as
Chair of the Committee at the forthcoming
Annual General Meeting prior to him
stepping down from the main Board in
2007. It has been decided that Mr S J
Waugh, an independent Non-Executive
Director, will be appointed to replace Lord
Gordon and he has attended the last three
meetings of the Committee as an observer.
Mr Waugh is currently undertaking a
training programme, which has been
determined by this Committee and
approved by the Board. It includes a
uniquely designed training course run by
New Bridge Street Consultants LLP , a
series of seminars and detailed discussions
with the Company Secretary.
As explained on page 38, the Board
undertook an evaluation of its performance
during the year. This included a review of
the effectiveness of this Committee
considering its composition, chairmanship,
whether it fulfilled its role as outlined in the
terms of reference, its reporting and overall
performance. This evaluation process was
undertaken by the Committee itself as well
as by all members of the Board. The results
of this process were positive and confirmed
the effectiveness of the Committee.
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 Executive Directors 
and ratified 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.
The Executive Directors have 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. The contract for
Mr D Cammiade is being prepared. In the
event of termination, the Executive Directors
would be entitled to loss of salary, benefits
and pensionable service for the notice period,
subject to mitigation where appropriate. 
Executive Directors’ service contracts,
which include details of remuneration, will
be available for inspection at the Annual
General Meeting.
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 will be made on the
same terms. The Non-Executive Directors
have letters of appointment dated:
Mr R G Parry 27 June 2003
Mr P E B Cawdron 25 January 2002
Mr F P M Johnston 25 January 2002
Mr H C M Johnston 25 January 2002
Lord Gordon 
of Strathblane 25 January 2002
Mrs M A King 25 April 2003
Mr S J Waugh 25 April 2003
Mr L Hinton 16 March 2005
A copy of the standard letter of appointment
for the Chairman and Non-Executive
Directors is displayed on the Company’s
website in the Investor Relations section.
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. Johnston Press plc 
Annual Report and Accounts 200447
Executive Directors are entitled to accept
up to two Non-Executive appointments
outside the Company providing the
Chairman’s permission is obtained. The
Remuneration Committee decides whether
any fees are retained by the director. 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 2004, Mr T J Bowdler and Mr S R
Paterson held external non-executive
posts and received £55,676 and £nil in
fees respectively. 
Basic Salary
An Executive Director’s basic salary is
determined by the Committee prior to 
the beginning of each calendar 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
carried out by its external consultants 
which gives up-to-date information on 
a comparator group of companies. As a
benchmark, it looks at the median rate for
similar sized companies.
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 for the
forthcoming year. The Committee believes
that this ties any incentive payments to the
interests of shareholders. The structure of
the bonus scheme has been revised from
1 January 2005 to make the bonus
potential more comparable with companies
of a similar size, but with tougher targets
than hitherto. Effective from the same date,
all Executive Directors are required to
invest at least a third of their bonus in the
Share Matching Plan.
For the 2004 calendar year, based on the
above parameters, a profit target was set
by the Board on the recommendation of 
the Remuneration Committee and on
achievement of this target half the
maximum potential bonus was payable.
Additional sums were payable above the
target on a sliding scale with a cap of
66
2
/3% and 60% of salary for Mr T J
Bowdler and Mr S R Paterson respectively.
The target for payment of the maximum
bonus was dependent on market
conditions at the beginning of the year 
and was considered by the Committee to
be challenging. If the profit target was not
achieved, bonus would be lost at twice the
rate of the sliding scale on the upside. The
target for payment of the maximum bonus
was achieved in 2004.
With effect from 1 January 2005, the
maximum bonus has increased for the
Executive Directors to 80% of salary, but
the scheme has been split into two parts.
Four fifths, or 64% of the 80%, relates to 
a profit based target using the same basic
structure as was in place throughout 2004.
The remaining element, 16% out of the
80%, is based on a like-for-like increase in
total revenues comparing 2005 with 2004.
For achievement of the revenue growth
target, which is based on the Company’s
internal budgets, half the maximum bonus
is payable with a sliding scale for
achievement above and below that target.
Once again, the sliding scale of the
downside is twice that of the upside.
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, including the performance related
element, of 25% of salary. No discretionary
bonus was paid in 2004.
Share Schemes
The Company operates a number of Share
Schemes and these are described below.
a) An Executive Share Option Scheme 
with grants being shown below and in
note 26 to the Accounts. Certain former
and current Directors have already
participated in the Scheme. The
Remuneration Committee reviews each
grant of options to Senior Executives on
the recommendation of the Chief
Executive Officer. 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. The Committee has decided that
there will be no retesting of performance
on any options granted after 1 January
2004 and performance will be measured
over a single three year period. For
options granted prior to 31 December
2003, performance is always tested from
a fixed base over a period of at least
three years 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 4%
and 5% points per annum respectively.
The Company’s policy is to grant options
at the discretion of the Committee taking
into account the Group and 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 the
Group profit target and an individual
profit target, with the allocation
increasing for individual performance
above target up to a maximum level. The
maximum annual grant under this policy
is 1.5 times salary for Mr T J Bowdler
and 1.2 times salary for Mr S R Paterson 
and Mr D Cammiade.
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.
In the event of a change in control 
of the Company, any options granted 
are exercisable within one month of 
the option holders being notified 
of the change in control. In such
circumstances the performance 
conditions will apply. However, in
exceptional circumstances the Johnston Press plc 
Annual Report and Accounts 2004 48
Directors’ Remuneration Report
Continued
Committee may, at its discretion, treat
the performance condition as satisfied
taking into account the underlying
performance of the Company up until
the relevant event.
b) A SAYE Share Option Scheme for eligible
employees under which options may be
granted at a discount of up to 20% of
market value. Consistent with the
legislation and normal practice, the SAYE
Option Scheme does not require the
imposition of performance conditions.
c) A Share Matching Plan which 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 Plan. With the change in the bonus
arrangements described above, Mr S R
Paterson and Mr D Cammiade are also
required to invest the same level into
the Plan in respect of the 2005 financial
year and thereafter.
The Plan currently does not permit any
dividends to vest on the element of
matching shares.
When any grant of matching shares is
approved, the Company purchases
sufficient shares to cover the maximum
match by all Executives. These shares
are held in the Johnston Press plc
Employee Share Trust, which is
administered by Hill Samuel in Jersey.
The only other shares held by the Trust
relate to the award of Restricted Shares
to Mr Bowdler referred to in the
pension arrangements section below.
The numbers of shares held by the
Trust on 31 December 2004 was
316,718, of which 207,497 related to
the Share Matching Plan. The balance
related to the Restricted Share Award
made to Mr T J Bowdler as shown on
page 51.
d) A Share Incentive Plan (SIP) for all
eligible employees. 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. The Free
Shares are allocated to employees
based on hours worked and are not 
pro rata to salary. In 2004, the profit
achievement exceeded the maximum
target set by the Committee.
The Company Secretary is responsible for
ensuring the exercise criteria is met for 
all the Share Schemes and this is verified
by the Committee.The performance
criterion, which applies to all Executive
Directors to whom options have been
granted under the Schemes (except the
SAYE Share Option Scheme), was chosen
as it requires significant improvement in
financial performance before options can
be exercised.The Committee will ensure
that EPS is calculated on as consistent a
basis as feasible following the transition 
to International Accounting Standards.
Options under a) and b) above are
satisfied by the issue of new shares. As
indicated above, the Company’s Employee
Share Trust holds the shares to meet
options under c) and shares are
purchased in the open market to satisfy
the Free Shares award within d).
At 31 December 2004 the total amount of
shares granted in all schemes over the
previous 10 years was 4.3% of the issued
share capital with a maximum limit of 10%.
Pension Arrangements
Throughout 2004, the Group operated two
pension schemes, both with defined benefit
and defined contribution sections. The
defined benefit sections are closed to new
members. On 31 December 2004, the two
schemes were merged into one under the
umbrella of Johnston Press Pension Plan
(JPPP). The only members remaining in the
Regional Independent Media Pension Plan
are deferred or pensioners who have
protected rights and cannot be transferred
under current legislation. The assets of the
pension schemes are totally separated from
the assets of the Company and of the
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.
Contributions to the JPPP are at a rate of
13.1% for all members. The executive
section of the Plan provides for a
retirement age of 62, a pension of two
thirds of salary based on a 45th accrual
rate or a full 2/3rds at retirement date, a
members contribution of 8% of salary with
a spouses pension of a third of
pensionable salary in the event of death in
service. There are no provisions for
beneficial rights on early retirement.
Mr T J Bowdler participates in the JPPP 
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 Johnston Press plc 
Annual Report and Accounts 200449
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 Cammiade is a member of the
JPPP and was prior to the introduction of
the earnings cap restriction. Mr S R
Paterson does not participate in the JPPP
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. With effect
from 1 January 2005, the Company has
also agreed to match any additional annual
contribution made by Mr S R Paterson, up
to a maximum of 5% of salary.
The Committee is reviewing the impact of
the impending changes to the pension
regime which is due to come into effect in
April 2006 and will ensure that any
changes which are required do not result
in an increase in the overall cost of
pension provision for the Group.
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. The level 
of fees was increased in April 2004. 
The basic annual fee paid to each Non-
Executive Director is £35,000. 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 the bonus
plans or in any of the Company’s Share
Schemes and are not eligible to join the
Company’s pension schemes.
Senior Executives Below Board Level
The five elements of the remuneration
package are described on page 46. The
salaries are determined by the Executive
Directors after consultation with the
Remuneration Committee based on
individual roles and responsibilities. The
targets for the performance related
bonuses are primarily profit related but
also include personal performance based
targets. The maximum bonus for 2004
was 50% of salary and this has been
increased to 60% effective from 1 January
2005, with more challenging targets being
set. Most of the Executives are members
of the final salary section of the JPPP , but
the Company contributes a maximum of
12% of salary to those who are members
of the defined contribution scheme. 
The Share Option Scheme and Share
Matching Plan benefits are as described
for the Executive Directors except the
maximum level of share option grant is
85% of salary.
Total Shareholder Return 
Johnston Press
Total Shareholder Return
FTSE 350 
Total Shareholder Return
FTSE Media Sector
Relative TSR
2000 2001 2002 2003 2004
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 2004
200
180
160
140
120
100
80
60
40
20
0 Johnston Press plc 
Annual Report and Accounts 2004 50
Directors’ Remuneration Report
Continued
Directors’ Remuneration - Audited Section
a) The total amounts for Directors’ remuneration and other benefits were as follows:
2004 2003
£’000 £’000
Emoluments 1,539 1,434
Gains on exercise of share options 1,053 297
Money purchase contributions 174 162
2,766 1,893
All of the gains on the exercise of share options were “cashless” with the gain, after taxation, being converted into increased
shareholdings for the executive directors.
b) Directors’ Emoluments
Performance Total
Salary/Fees Taxable Benefits Related Bonus Emoluments
2004 2003 2004 2003 2004 2003 2004 2003
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Chairman
R G Parry 97 90 — — — — 97 90
Executive Directors
T J Bowdler 450 420 22 23 300 280 772 723
S R Paterson 270 250 1 1 162 150 433 401
Non-Executive Directors
P E B Cawdron 45 30 — — — — 45 30
Lord Gordon of Strathblane* 41 45 — — — — 41 45
H C M Johnston 34 30 — — — — 34 30
F P M Johnston 34 30 — — — — 34 30
M A King 34 20 — — — — 34 20
S J Waugh 34 20 — — — — 34 20
Sir Harry Roche - retired 30 April 2004 15 45 — — — — 15 45
1,054 980 23 24 462 430 1,539 1,434
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 31.12.03 during year increase 31.12.04 31.12.03 31.12.04 during year
£’000 £’000 £’000 £’000 £’000 £’000 £’000
T J Bowdler 11 49 5 33 54 697 793 96
H C M Johnston 12 16 — 5 16 221 241 20
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 48 and 49. In addition to the above, the Group funded £120,000 and
£54,000 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. Johnston Press plc 
Annual Report and Accounts 200451
d) Share Schemes
Number of On exercise
options during the year Market gains
At At price 2004 2003
01.01.04 Granted Exercised 31.12.04 p £’000 £’000
Executive Share Option Scheme
T J Bowdler 658,610 116,883 222,097 553,396 516.00 516 195
S R Paterson 250,688 55,658 137,418 168,928 557.50 396
Savings Related Scheme
T J Bowdler 3,387 — — 3,387
S R Paterson 3,527 2,285 3,527 2,285 550.50 10
Restricted Share Scheme
T J Bowdler 133,491 — 24,270 109,221 539.75 131 102
Share Matching Plan
T J Bowdler 27,854 26,861 — 54,715
S R Paterson 11,819 14,390 — 26,209
The above options are exercisable as follows:
T J Bowdler
148,809 at a price of 268.80p between 05.11.2004 and 04.11.2011
117,927 at a price of 356.50p between 24.04.2005 and 23.04.2012
169,777 at a price of 347.00p between 21.03.2006 and 20.03.2013
116,883 at a price of 539.00p between 26.04.2007 and 25.04.2014
3,387 at a price of 279.00p between 01.11.2005 and 30.04.2006
S R Paterson
46,028 at a price of 356.50p between 24.04.2005 and 23.04.2012
67,242 at a price of 347.00p between 21.03.2006 and 20.03.2013
55,658 at a price of 539.00p between 26.04.2007 and 25.04.2014
2,285 at a price of 414.50p between 01.11.2007 and 30.04.2008
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.
The matching awards granted within the Share Matching Plan are exercisable for a nominal total payment of £1 as shown below. 
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. 
39,673 between 30.05.2006 and 29.05.2013 - market price on grant 399.5p
41,251 between 22.03.2007 and 21.03.2014 - market price on grant 498.25p
The options or matching awards granted as listed above, 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.
The middle market price of the Ordinary Shares was as follows:
On 1 January 2004 465.75p Highest price during year 570.00p
On 31 December 2004 542.00p Lowest price during year 463.75p
This report was approved by the Board of Directors on 16 March 2005 and signed on its behalf by: 
Lord Gordon of Strathblane Johnston Press plc 
Annual Report and Accounts 2004 52
Directors’ Report
Y ear to 31 December 2004
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 2004 are set out in the Group Profit and Loss Account on page 56. The Group profit for the year before taxation
was £150,600,000 (2003 - £127,952,000) which results in a retained profit transferred to Reserves of £86,457,000 (2003 - £72,515,000).
Details of the business activities during the year are set out in the Chief Executive Officer’s Review and in the Financial Review.
Dividends
The Directors recommend a final dividend of 4.8p per share making a total dividend of 7.2p per share for the year. Subject to approval
by members the final dividend will be paid on 13 May 2005 to those Ordinary Shareholders on the register at 29 April 2005.
Share Capital
Details of Share Capital are shown in note 20.
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 £199,000 (2003 - £159,000). 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 Group at 
31 December 2004 were equivalent to 16 days purchases (2003 - 17 days), based on the average daily amount invoiced by suppliers
during the year.
Directors and their Interests
Under the Company’s Articles of Association, each director is subject to retirement every three years. Mr R G Parry and 
Mr T J Bowdler are due to retire at this year’s Annual General Meeting and being eligible, offer themselves for re-election. Mr L Hinton
and Mr D Cammiade have been appointed to the Board since the last Annual General Meeting, both on 16 March 2005, and, in
accordance with the Articles of Association, will retire and seek re-election at the Annual General Meeting.  Johnston Press plc 
Annual Report and Accounts 200453
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 2004 31 December 2003
R G Parry 107,807 107,807
T J Bowdler 347,421 256,819
S R Paterson 70,298 14,173
P E B Cawdron 9,800 9,800
F P M Johnston 12,717,696 12,717,696
H C M Johnston 12,000,000 12,200,000
Sir Harry Roche - retired 30 April 2004 64,066
Lord Gordon of Strathblane 47,310 47,310
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
316,718 (2003 - 197,256) shares by virtue of their status as potential beneficiaries of the Johnston Press Employee Share Trust.
Since 31 December 2004, Mr T J Bowdler and Mr S R Paterson have each purchased 45 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, as at the date of this report 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 11,199,090
M F Johnston 6,902,376
R T Johnston 6,959,491
FMR Corp 14,054,108
Lloyds TSB Group of Companies 10,768,583
Barclays PLC 12,933,158
Legal & General Group of Companies 8,686,099
The Capital Group Companies 8,635,648
Employee Involvement
It is the policy of the Group to encourage and develop all members of staff to realise their maximum potential. Wherever possible,
vacancies are filled from within the Group and adequate opportunities for internal promotion are created. The Board is committed to 
a systematic training policy.
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, ethnic or national origin, sexual orientation, gender or gender reassignment, marital status or disability.
It is also the policy of the Group, where possible, to give sympathetic consideration to disabled persons in their application for
employment within the Group, and to protect the interests of existing members of the staff who are disabled.
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. In this way, staff will make their best
possible contribution to the organisation's success.  Johnston Press plc 
Annual Report and Accounts 2004 54
Directors’ Report
Y ear to 31 December 2004 - continued
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.
Electronic voting 
The Company has made provision for shareholders to vote electronically on the Resolutions to be considered at the Annual General
Meeting and full instructions are included on the Form of Proxy enclosed with this Annual Report.
Special Business
Three 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 £9,510,699 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. 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.
Auditors
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
16 March 2005 Johnston Press plc 
Annual Report and Accounts 200455
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 2004 which comprise the Group
profit and loss account, the balance sheets, the Group cash flow statement, the Group statement of total recognised gains and losses,
the note of Group historical cost profits and losses, the Group reconciliation of movements in shareholders’ funds and the related
notes 1 to 26. 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 nine provisions of the Combined
Code issued in July 2003 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 2004
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
16 March 2005 Johnston Press plc 
Annual Report and Accounts 2004 56
Group Profit and Loss Account
Y ear to 31 December 2004
2004 2003
Before Before
exceptional Exceptional exceptional Exceptional
items items Total items items Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Turnover - Continuing operations 2 518,830 — 518,830 491,843 — 491,843
Cost of sales 3 (239,722) — (239,722) (234,225) — (234,225)
Gross profit 279,108 — 279,108 257,618 — 257,618
Other operating expenses (net) 3 (101,115) (769) (101,884) (94,585) (2,452) (97,037)
Operating profit - Continuing operations 4 177,993 (769) 177,224 163,033 (2,452) 160,581
Share of associates’ operating profit 221 — 221 581 — 581
Profit on ordinary activities 
before interest and taxation 178,214 (769) 177,445 163,614 (2,452) 161,162
Net interest 5 (26,137) (708) (26,845) (32,485) (725) (33,210)
Profit on ordinary activities before taxation 152,077 (1,477) 150,600 131,129 (3,177) 127,952
Taxation on profit on ordinary activities 8 (43,903) 443 (43,460) (39,217) 953 (38,264)
Profit for the financial year 108,174 (1,034) 107,140 91,912 (2,224) 89,688
Dividends on equity and non-equity shares 9 (20,683) — (20,683) (17,173) — (17,173)
Retained profit for year 21 87,491 (1,034) 86,457 74,739 (2,224) 72,515
Earnings per share 10
Headline 37.96p 32.36p
Headline diluted 37.62p 32.13p
Basic 37.60p 31.57p
Diluted 37.26p 31.35p
A statement of movements on reserves is given in note 21.
The accompanying notes are an integral part of these accounts. Johnston Press plc 
Annual Report and Accounts 200457
Group Statement of Total Recognised Gains and Losses
Y ear to 31 December 2004
2004 2003
£’000 £’000
Profit for the financial year and total recognised gains and losses for the financial year 107,140 89,688
2004 2003
£’000 £’000
Profit for the financial year 107,140 89,688
Dividends (20,683) (17,173)
Movement in own shares (325) 62
New share capital subscribed, including share premium 3,245 1,390
Net increase in shareholders’ funds 89,377 73,967
Opening shareholders’ funds 634,932 560,965
Closing shareholders’ funds 724,309 634,932
2004 2003
£’000 £’000
Reported profit on ordinary activities before taxation 150,600 127,952
Difference between historical cost depreciation charge and the actual 
depreciation charge for the year calculated on the revalued amount 69 85
Historical cost profit on ordinary activities before taxation 150,669 128,037
Historical cost profit for the year retained after taxation
and dividends 86,526 72,600
The accompanying notes are an integral part of these accounts.
Group Note of Historical Cost Profits and Losses
Y ear to 31 December 2004
Group Reconciliation of Movements in Shareholders’ Funds
Y ear to 31 December 2004 Johnston Press plc 
Annual Report and Accounts 2004 58
Group Balance Sheet
As at 31 December 2004
2004 2003
Notes £’000 £’000
Fixed assets 
Intangible 11 927,557 927,557
Tangible 12 156,742 156,972
Investments 13 2,798 3,980
1,087,097 1,088,509
Current assets
Stocks 14 4,417 2,961
Debtors - due within one year 15 60,114 59,734
- due after more than one year 15 18,409 13,984
Cash at bank and in hand 22g 10,119 9,944
93,059 86,623
Creditors: amounts falling due within one year 16 (173,227) (151,123)
Net current liabilities (80,168) (64,500)
Total assets less current liabilities 1,006,929 1,024,009
Creditors: amounts falling due after more than one year 17 (268,002) (372,750)
Provisions for liabilities and charges 19 (14,618) (16,327)
Net assets 2 724,309 634,932
Capital and reserves
Called-up share capital
Equity 20 28,532 28,399
Non-equity 20 1,106 1,106
29,638 29,505
Reserves - equity 21 694,671 605,427
Shareholders’ funds 724,309 634,932
The accounts were approved by the Board of Directors on 16 March 2005 and were signed on its behalf by:
T J Bowdler, Chief Executive Officer S R Paterson, Chief Financial Officer
The accompanying notes are an integral part of these accounts. Johnston Press plc 
Annual Report and Accounts 200459
Group Cash Flow Statement 
Y ear to 31 December 2004
2004 2003
Notes £’000 £’000
Net cash inflow from operating activities 22a 192,740 167,573
Returns on investments and servicing of finance 22b (24,316) (30,849)
Taxation 22c (34,321) (23,548)
Capital expenditure and financial investment 22d (22,116) (18,291)
Acquisitions and disposals 22e — 608
Equity dividends paid (18,196) (15,863)
Cash inflow before financing 93,791 79,630
Financing 22f (90,257) (92,241)
Increase/(decrease) in cash in the year 22g 3,534 (12,611)
The accompanying notes are an integral part of these accounts. Johnston Press plc 
Annual Report and Accounts 2004 60
Company Balance Sheet
As at 31 December 2004
2004 2003
Notes £’000 £’000
Fixed Assets
Tangible 12 1,550 2,259
Investments 13 646,686 647,394
648,236 649,653
Current assets
Stocks 14 200 314
Debtors - due within one year 15 172,324 114,052
- due after more than one year 15 440,454 440,466
Cash at bank and in hand 1,757 1,740
614,735 556,572
Creditors: amounts falling due within one year 16 (214,462) (131,124)
Net current assets 400,273 425,448
Total assets less current liabilities 1,048,509 1,075,101
Creditors: amounts falling due after more than one year 17 (261,041) (366,068)
Provisions for liabilities and charges 19 (746) (800)
Net assets 786,722 708,233
Capital and reserves
Called-up share capital
Equity 20 28,532 28,399
Non-equity 20 1,106 1,106
29,638 29,505
Reserves - equity 21 757,084 678,728
Shareholders’ funds 786,722 708,233
The accounts were approved by the Board of Directors on 16 March 2005 and were signed on its behalf by:
T J Bowdler, Chief Executive Officer S R Paterson, Chief Financial Officer
The accompanying notes are an integral part of these accounts. Johnston Press plc 
Annual Report and Accounts 200461
Notes to the Accounts
Y ear to 31 December 2004
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, a loss of £23,406,000 (2003 - £27,376,000) 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 accounts for 2004 relate to 53 weeks trading whereas the 2003 accounts comprise 52 weeks.
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 12.
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
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. Johnston Press plc 
Annual Report and Accounts 2004 62
Notes to the Accounts
Y ear to 31 December 2004 - continued
1. Accounting Policies (continued)
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.
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.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are
expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is measured on a non-discounted basis. Johnston Press plc 
Annual Report and Accounts 200463
1. Accounting Policies (continued)
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.
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 19 and 24.
2. Turnover/Net Assets Analysis
Turnover Group Net Assets
2004 2003 2004 2003
£’000 £’000 £’000 £’000
a) By activity
Continuing operations
Newspapers and contract printing 518,830 491,843 724,309 634,932
b) By location
All the Turnover and Net Assets relate to the United Kingdom.
There is no significant difference between the geographical origin and destination of turnover. Johnston Press plc 
Annual Report and Accounts 2004 64
Notes to the Accounts
Y ear to 31 December 2004 - continued
3. Cost of Sales and Other Operating Expenses (net)
2004 2003
£’000 £’000
a) Cost of sales
Cost of Sales 239,722 234,225
2004 2003
£’000 £’000
b) Other operating expenses (net)
Distribution costs 39,661 37,490
Administration expenses (inclusive of exceptional items) 62,223 59,547
101,884 97,037
2004 2003
£’000 £’000
c) Operating exceptionals included within administration expenses
Restructuring of the Group’s operations 1,835 2,790
Profit on sale of business — (338)
Profit on sale of investment in Two Boroughs Radio (1,066) —
769 2,452
4. Operating Profit
2004 2003
a) By activity £’000 £’000
Continuing operations
Newspapers and contract printing 177,224 160,581
b) By location
All the operating profit is derived from the United Kingdom.
2004 2003
£’000 £’000
c) Operating profit is shown after charging:
Depreciation of tangible fixed assets (note 12) 19,506 18,016
Loss on disposal of tangible fixed assets 285 31
Redundancy costs 2,495 3,556
Staff costs (note 6) 162,038 155,094
Auditors’ remuneration:
Audit services (Company - £30,000 in both years) 237 230
Operating lease charges:
Plant and machinery 1,269 1,903
Other 2,900 2,978 Johnston Press plc 
Annual Report and Accounts 200465
4. Operating Profit (continued)
In addition to the auditors’ remuneration shown above, the auditors received the following fees for non audit services.
2004 2003
£’000 £’000
Corporate activity 60 55
Audit of circulation and distribution figures of the Group’s newspaper titles 244 209
Taxation services 151 168
455 432
In addition, an amount of £24,000 was paid to the external auditors for the audit of the Group’s pension schemes.
5. Net Interest
2004 2003
£’000 £’000
Investment income:
Income from fixed asset investments 495 806
Interest receivable 335 308
830 1,114
Interest payable and similar charges:
On bank loans and overdrafts 23,122 30,978
On loan stock 1,859 1,271
Amortisation of term debt issue costs 1,986 1,350
26,967 33,599
Exceptional item:
Provision for impairment of investment in Mirago (note 13) 708 725
Total interest payable and similar charges 27,675 34,324
Net interest 26,845 33,210 Johnston Press plc 
Annual Report and Accounts 2004 66
Notes to the Accounts
Y ear to 31 December 2004 - continued
6. Employees
The average monthly number of employees (including executive directors) was:
2004 2003
No. No.
Newspaper and contract printing:
Editorial and photographic 1,991 1,981
Sales and distribution 3,264 3,312
Production 1,664 1,702
Administration 732 777
7,651 7,772
£’000 £’000
Staff costs (including Directors’ remuneration): 
Wages and salaries 139,877 134,535
Social security costs 12,765 11,969
Other pension costs (note 24) 9,396 8,590
162,038 155,094
7. Directors’ Emoluments
Full details of the Directors’ emoluments, pension benefits and share options are included in the Directors’ Remuneration Report on
pages 46 to 51.
8. Taxation
The taxation charge which is based on the profit for the year is made up as follows:
2004 2003
£’000 £’000
Corporation tax - Group current tax 44,620 28,689
Tax on profit of associated undertakings 47 126
Taxation under/(over) provision in previous years 441 (682)
Deferred taxation (note 19) (1,648) 10,131
Tax on profit on ordinary activities 43,460 38,264 Johnston Press plc 
Annual Report and Accounts 200467
8. Taxation (continued)
The differences between the total current tax and the amount calculated by applying the standard rate of UK corporation tax to the
profit before tax are as follows:
2004 2003
£’000 £’000
Profit on ordinary activities before tax 150,600 127,952
Less: share of associates’ profit before tax 221 581
Group profit on ordinary activities before tax 150,379 127,371
Tax on Group profit on ordinary activities at standard UK corporation tax rate of 30% (2003 - 30%) 45,114 38,211
Effects of:
Expenses not deductible for tax purposes 114 352
Capital allowances in excess of depreciation (790) (1,264)
Investment income (149) (242)
Other timing differences 331 (8,368)
Group current tax charge for period 44,620 28,689
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 £1,379,000 (2003 - £1,224,000).
At present, it is not envisaged that any tax will become payable in the foreseeable future.
9. Dividends
2004 2003
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 2.4p (2003 - 2p) paid on 5 November 2004 6,836 5,661
Proposed final of 4.8p (2003 - 4p) payable on 13 May 2005 13,695 11,360
20,683 17,173 Johnston Press plc 
Annual Report and Accounts 2004 68
Notes to the Accounts
Y ear to 31 December 2004 - continued
10. Earnings per Share
The calculations of earnings per share are based on the following profits and weighted average number of shares:
Headline Basic/Diluted
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Profit for the financial year 107,140 89,688 107,140 89,688
Exceptional items 1,477 3,177 — —
Tax effect of exceptional items (443) (953) — —
Preference dividends (152) (152) (152) (152)
108,022 91,760 106,988 89,536
2004 2003
No. of shares No. of shares
Weighted average number of shares
For headline/basic earnings per share 284,567,734 283,576,312
Exercise of share options 2,593,694 2,052,389
For diluted earnings per share 287,161,428 285,628,701
Headline figures are presented to show the effect of excluding exceptional items from earnings per share.
11. Intangible Fixed Assets
Group Company
£’000 £’000
Publishing titles:
Cost and net book value 
At 1 January 2004 and 31 December 2004 927,557 — Johnston Press plc 
Annual Report and Accounts 200469
12. 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 2004 50,751 4,647 167,530 17,211 240,139
Additions 1,922 9 15,183 4,422 21,536
Disposals (674) — (1,113) (672) (2,459)
At 31 December 2004 51,999 4,656 181,600 20,961 259,216
Depreciation
At 1 January 2004 4,343 874 69,005 8,945 83,167
Disposals (93) — — (106) (199)
Charge for the year 1,064 147 15,321 2,974 19,506
At 31 December 2004 5,314 1,021 84,326 11,813 102,474
Net book value
At 31 December 2004 46,685 3,635 97,274 9,148 156,742
At 31 December 2003 46,408 3,773 98,525 8,266 156,972
Freehold land amounting to £13,047,000 (2003 - £11,991,000) 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 2004 1,960 400 437 104 2,901
Additions — — — 33 33
Disposals (640) — — (59) (699)
At 31 December 2004 1,320 400 437 78 2,235
Depreciation
At 1 January 2004 276 56 253 57 642
Disposals (93) — — (43) (136)
Charge for year 31 9 120 19 179
At 31 December 2004 214 65 373 33 685
Net book value
At 31 December 2004 1,106 335 64 45 1,550
At 31 December 2003 1,684 344 184 47 2,259 Johnston Press plc 
Annual Report and Accounts 2004 70
Notes to the Accounts
Y ear to 31 December 2004 - continued
12. Tangible Fixed Assets (continued)
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
a) Freehold land and buildings comprise:
At valuation 36,954 37,594 1,320 1,960
At cost 15,045 13,157 — —
51,999 50,751 1,320 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
2004 2003 2004 2003
£’000 £’000 £’000 £’000
b) Historical cost figures for freehold buildings are:
Cost 49,010 47,838 1,062 1,772
Depreciation (5,361) (4,596) (191) (393)
43,649 43,242 871 1,379
Group Company
£’000 £’000
c) Assets in the course of construction
Plant and machinery
At 1 January 2004 3,831 —
Movement in the year (2,962) —
At 31 December 2004 869 —
d) The Group plant additions include £7,009,000 relating to progress payments in respect of the new press plant in South Yorkshire.
This will not be depreciated until the press commences commercial operation. Johnston Press plc 
Annual Report and Accounts 200471
13. Fixed Asset Investments
Associated Listed Unlisted
undertakings investments investments Total
Group £’000 £’000 £’000 £’000
Cost
At 1 January 2004 516 271 4,494 5,281
Disposals (132) — — (132)
Share of profits for the year 174 — — 174
Dividends received (498) — — (498)
At 31 December 2004 60 271 4,494 4,825
Provisions for impairment
At 1 January 2004 — 225 1,076 1,301
Written off — 18 708 726
At 31 December 2004 — 243 1,784 2,027
Net book value at 31 December 2004 60 28 2,710 2,798
Net book value at 31 December 2003 516 46 3,418 3,980
Subsidiary Unlisted
undertakings investments Total
Company £’000 £’000 £’000
Cost
At 1 January 2004 and 31 December 2004 644,944 3,526 648,470
Provisions for impairment
At 1 January 2004 — 1,076 1,076
Written off — 708 708
At 31 December 2004 — 1,784 1,784
Net book value at 31 December 2004 644,944 1,742 646,686
Net book value at 31 December 2003 644,944 2,450 647,394
The aggregate market value of the listed investments for the Group at 31 December 2004 was £28,000 (2003 - £46,000).
Disposal of investments
On 30 July 2004, the Company, through one of its subsidiaries, sold the investment in Two Boroughs Radio Ltd. The consideration
was £1,198,000, with a cost of £132,000, leaving a profit on sale of £1,066,000. In addition, Emcliffe Ltd, another associated
undertaking, ceased trading on 31 January 2004. Johnston Press plc 
Annual Report and Accounts 2004 72
Notes to the Accounts
Y ear to 31 December 2004 - continued
13. 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
*Classified Periodicals Ltd England 50% Newspaper publishers
*Free Admart Ltd England 25% Newspaper publishers
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
*The Reporter 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. Johnston Press plc 
Annual Report and Accounts 200473
14. Stocks
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Raw materials 4,236 2,664 19 17
Work in progress 3 2 3 2
Goods for re-sale 178 295 178 295
4,417 2,961 200 314
There is no material difference between the net book value of stocks as shown above and their estimated replacement cost.
15. Debtors
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade debtors 53,528 52,874 68 13
Amounts owed by Group undertakings — — 43,544 43,413
Prepayments 3,435 3,742 5 3
Other debtors 3,151 3,118 47 265
Dividends receivable — — 120,000 60,000
Corporation tax recoverable — — 8,660 10,358
60,114 59,734 172,324 114,052
Amounts falling due after more than one year:
Amounts owed by Group undertakings — — 440,401 440,401
Pension prepayments 18,363 13,949 53 65
Other debtors 46 35 — —
18,409 13,984 440,454 440,466 Johnston Press plc 
Annual Report and Accounts 2004 74
Notes to the Accounts
Y ear to 31 December 2004 - continued
16. Creditors: amounts falling due within one year
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Bank loans (note 18) 64,537 51,358 64,537 51,358
Loan stock (note 18) 1,000 1,442 1,000 1,000
Bank overdrafts (secured) 11,673 15,032 13,549 17,717
Trade creditors 10,928 9,099 — —
UK Corporation tax payable 24,814 14,074 — —
Other taxes and social security costs 10,531 11,341 245 189
Amounts owed to Group undertakings — — 112,780 42,018
Dividends proposed 13,695 11,360 13,695 11,360
Obligations under finance leases 16 16 — —
Other creditors 4,280 5,929 277 76
Accruals and deferred income 31,753 31,472 8,379 7,406
173,227 151,123 214,462 131,124
The Bank loans above are net of term debt issue costs amounting to £1,356,000 in both years for the Group and Company.
17. Creditors: amounts falling due after more than one year
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Bank loans (note 18) 89,767 192,097 89,767 192,097
Private placement of 10 year senior notes 132,785 132,785 132,785 132,785
Loan stock (note 18) 38,440 40,017 38,440 40,017
Senior discount notes — 319 — —
Other creditors 6,987 7,482 49 1,169
Obligations under finance leases 23 50 — —
268,002 372,750 261,041 366,068
The Bank loans above are net of term debt issue costs amounting to £1,136,000 (2003: £3,122,000) for the Group and Company. Johnston Press plc 
Annual Report and Accounts 200475
18. Loans
Borrowings gross of term debt issue costs were: Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Guaranteed loan stock 1999/2006 39,440 41,017 39,440 41,017
Guaranteed loan stock 1999/2004 — 442 — —
12.88% Senior discount notes — 319 — —
Private placement of 10 year senior notes 132,785 132,785 132,785 132,785
Bank loans 156,796 247,933 156,796 247,933
329,021 422,496 329,021 421,735
Repayable:
Within one year 66,893 54,156 66,893 53,714
Within one to two years 113,119 65,893 113,119 65,893
Within two to five years 149,009 302,447 149,009 302,128
329,021 422,496 329,021 421,735
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 29.
At 31 December 2004, 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 overdraft facility and 
a Private Placement of 10 year Senior Notes amounting to £133 million. The undrawn element of the Facilities at 31 December 2004
amounted to £193 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. 
A settlement was reached during the year with the holder of the Senior Discount Notes outstanding at 31 December 2003.
Interest rate profile
At 31 December 2004, the Group’s financial assets consisted of sterling cash deposits of £2,580,000 (2003 - £4,051,000) which 
are placed on money market at call. The interest rate profile of the Group’s financial liabilities, including the swaps held, at
31 December 2004 was:
Borrowings Proportion
Total Floating Fixed Floating rate Fixed rate
£’000 £’000 £’000 % %
2004
Total borrowings 329,021 79,021 250,000 24 76
2003
Total borrowings 422,496 62,496 360,000 15 85
The weighted average interest rate on the fixed rate borrowings at 31 December 2004 was 5.19% (2003 - 5.30%) which is fixed for an
average period of 4 years (2003 - 5 years). Johnston Press plc 
Annual Report and Accounts 2004 76
Notes to the Accounts
Y ear to 31 December 2004 - continued
18. Loans (continued)
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.
The hedging arrangements all relate to the multi-option borrowing facility and the Private Placement of 10 year Senior Notes. 
They were a requirement of the multi-option borrowing facility.
There is a difference between the book value and fair value, measured under discounted cash flow, of these swaps amounting 
to £16 million (2003 - £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 2004 there were no material unrecognised gains or losses.
19. Provisions for Liabilities and Charges
Group Company
2004 2003 2004 2003
£’000 £’000 £’000 £’000
Deferred taxation 12,904 14,552 (474) (420)
Unfunded pensions 1,220 1,220 1,220 1,220
Post retirement health costs 494 555 — —
14,618 16,327 746 800
a) Deferred taxation
The balance on the deferred taxation account represents the postponed liability calculated at 30% (2003 - 30%) arising from:
(i) Accelerated capital allowances.
(ii) Timing differences on pension commitments.
(iii) Other timing differences.
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 2004 12,803 839 910 14,552
Transfer from/(to) Profit and Loss Account 389 (105) (1,932) (1,648)
At 31 December 2004 13,192 734 (1,022) 12,904
Company
At 1 January 2004 (30) (347) (43) (420)
Transfer to Profit and Loss Account (33) (17) (4) (54)
At 31 December 2004 (63) (364) (47) (474) Johnston Press plc 
Annual Report and Accounts 200477
19. Provisions for Liabilities and Charges (continued)
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 2004 1,220 1,220
Pensions paid during the year (127) (127)
1,093 1,093
Valuation at 31 December 2004 1,220 1,220
Charged to Profit and Loss Account (127) (127)
c) The movement in post retirement health costs relates to payments made in the year.
20. Share Capital
2004 2003
£’000 £’000
Authorised — equity and voting
390,000,000 Ordinary Shares of 10p each (2003 - 390,000,000) 39,000 39,000
Authorised — non-equity and non-voting
756,000 13.75% Cumulative Preference Shares of £1 each (2003 - 756,000) 756 756
415,000 13.75% “A” Preference Shares of £1 each (2003 - 415,000) 415 415
40,171 40,171
Issued — equity
285,320,970 Ordinary Shares of 10p each (2003 - 283,994,896) 28,532 28,399
Issued — non-equity
756,000 13.75% Cumulative Preference Shares of £1 each (2003 - 756,000) 756 756
349,600 13.75% “A” Preference Shares of £1 each (2003 - 349,600) 350 350
29,638 29,505
During the year ended 31 December 2004, Ordinary Shares of 10p each were issued and allotted as follows:
£’000
557,111 shares under the terms of the executive share option schemes for a consideration of £1,555,949 56
768,963 shares under the terms of the save as you earn scheme for a consideration of £1,689,215 77
Total at 31 December 2003 29,505
Total at 31 December 2004 29,638
Details of options outstanding are shown on page 51 and in note 26. Johnston Press plc 
Annual Report and Accounts 2004 78
Notes to the Accounts
Y ear to 31 December 2004 - continued
21. Reserves
Share Revaluation Own Profit and
premium reserve shares loss account Total
£’000 £’000 £’000 £’000 £’000
Group
At 1 January 2004 320,558 2,905 (470) 282,434 605,427
Retained profit for year — — — 86,457 86,457
Share premium on issue of new
Ordinary Shares 3,112 — — — 3,112
Revaluation adjustment — (69) — 69 —
Own shares purchased — — (791) — (791)
Amounts written off — — 466 — 466
At 31 December 2004 323,670 2,836 (795) 368,960 694,671
Share Revaluation Other Own Profit and
premium reserve reserves shares loss account Total
£’000 £’000 £’000 £’000 £’000 £’000
Company
At 1 January 2004 320,558 72 19,510 (470) 339,058 678,728
Retained profit for year ———— 75,569 75,569
Share premium on issue of new
Ordinary Shares 3,112———— 3,112
Revaluation adjustment — (9) — — 9 —
Own shares purchased — — — (791) — (791)
Amounts written off — — — 466 — 466
At 31 December 2004 323,670 63 19,510 (795) 414,636 757,084
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 (2003 - £60,956,000). Johnston Press plc 
Annual Report and Accounts 200479
22. Notes to Cash Flow Statement 
2004 2003
£’000 £’000
a) Net cash inflow from operating activities
Operating profit 177,224 160,581
Exceptional items (337) (669)
Depreciation charges 19,506 18,016
Loss on sale of tangible fixed assets 285 31
Profit on sale of investment in Two Boroughs Radio (1,066) —
Profit on sale of business — (338)
Amount written off Employee share option trust 466 287
Increase in stocks (1,456) (258)
Increase in debtors (4,805) (12,281)
Increase in creditors 2,923 1,904
Increase in unfunded pension provision — 300
Net cash inflow from operating activities 192,740 167,573
b) Return on investments and servicing of finance
Income from fixed asset investments 513 845
Interest received 335 308
Dividends received from associated undertakings 498 352
Interest paid (25,510) (32,202)
Preference dividends paid (152) (152)
Net cash outflow (24,316) (30,849)
c) Taxation
UK corporation tax paid (34,321) (23,548)
Net cash outflow (34,321) (23,548)
d) Capital expenditure and financial investment
Purchase of tangible fixed assets (24,498) (19,103)
Sale of tangible fixed assets 1,975 1,015
Purchase of investment - Employee share option trust (791) (238)
Sale of investment 1,198 35
Net cash outflow (22,116) (18,291) Johnston Press plc 
Annual Report and Accounts 2004 80
Notes to the Accounts
Y ear to 31 December 2004 - continued
22. Notes to Cash Flow Statement (continued)
2004 2003
£’000 £’000
e) Acquisitions and disposals
Sale of subsidiary undertaking/business — 608
Net cash inflow — 608
f) Financing
Proceeds from issue of ordinary share capital 3,245 1,390
Loan stock repaid (2,338) (1,695)
Loans repaid (91,137) (224,697)
New loans — 132,785
Finance leases (27) (24)
Net cash outflow (90,257) (92,241)
g) Analysis and reconciliation of net debt
Other
1 January non-cash 31 December
2004 Cash flow changes 2004
£’000 £’000 £’000 £’000
Cash at bank and in hand 9,944 175 — 10,119
Overdrafts (15,032) 3,359 — (11,673)
(5,088) 3,534 — (1,554)
Bank loans (247,933) 91,137 — (156,796)
Senior notes (132,785) — — (132,785)
Loan stock (41,778) 2,338 — (39,440)
Finance leases (66) 27 — (39)
Term debt issue costs 4,478 — (1,986) 2,492
(418,084) 93,502 (1,986) (326,568)
Net debt (423,172) 97,036 (1,986) (328,122)
Of the £10,119,000 cash at bank and in hand, £1,577,000 is held on deposit to guarantee the 1999/2006 Loan Stock interest for 
one year. Johnston Press plc 
Annual Report and Accounts 200481
22. Notes to Cash Flow Statement (continued)
2004 2003
£’000 £’000
Increase/(decrease) in cash in the year 3,534 (12,611)
Repayment of debt and movement in lease financing 93,502 93,631
Change in net debt resulting from cash flows 97,036 81,020
Amortisation of term debt issue costs (1,986) (1,350)
Movement in net debt in year 95,050 79,670
Net debt at beginning of year (423,172) (502,842)
Net debt at end of year (328,122) (423,172)
23. 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 2004 was £1,269,000 (2003 - £1,903,000). In addition, the Group leases certain land and
buildings on short-term and long-term operating leases. The annual rental on these leases was £2,900,000 (2003 - £2,978,000). 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
2004 2003 2004 2003
£’000 £’000 £’000 £’000
The minimum annual rentals
under the foregoing leases are as follows:
Plant — expiring
Within one year 119 100 — —
Between two and five years 344 231 — —
463 331 — —
Land and buildings — expiring
Within one year 232 381 6 6
Between two and five years 493 485 — —
After five years 1,570 1,822 32 —
2,295 2,688 38 6
b) Capital commitments
Contracted for but not provided 21,250 — — —
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.  Johnston Press plc 
Annual Report and Accounts 2004 82
Notes to the Accounts
Y ear to 31 December 2004 - continued
24. Pension Schemes
In 2004, the Group operated two defined benefit pension schemes, the Johnston Press Pension Plan (JPPP) and the Regional
Independent Media Pension Plan (RIM), both of which incorporated a defined contribution scheme. As explained in the Directors’
Remuneration Report on page 48, the RIM scheme was merged in to the JPPP on 31 December 2004. When the last valuation was
completed, the final salary and defined contribution schemes of the JPPP were separate and the former was known as the Johnston
Press Pension Scheme (JPPS). 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. On the
merger of the JPPP and RIM on 31 December 2004, the Company made a further one-off contribution of £5.8 million.
The pension cost charged in the Profit and Loss Account was as follows:
2004 2003
£’000 £’000
Defined benefit schemes 6,214 5,531
Defined contribution schemes 3,182 3,059
Charged in accounts 9,396 8,590
Actual contributions paid 13,758 20,384
Increase in balance sheet excesses 4,362 11,794
A cumulative excess of £14,311,000 (2003 - excess of £9,949,000) is included within the balance sheet.  Johnston Press plc 
Annual Report and Accounts 200483
24. Pension Schemes (continued)
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 fourth 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 2004 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.
The major assumptions used for actuarial valuation were:
2004 2003 2002
Rate of increase in salaries 3.5% 3.5% 3.2%
Rate of increase in pensions in payment 2.5% 2.5% 2.2%
Discount rate 5.3% 5.4% 5.5%
Inflation assumption 2.5% 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:
JPPP RIM Total
2004 2004 2004 2004 2004 2003 2003 2002 2002
% £m % £m £m %£m % £m
Equities 7.5 155.3 7.5 18.5 173.8 7.3 146.9 7.0 113.3
Bonds 5.2 30.5 5.5 8.8 39.3 5.2 58.3 4.5 56.1
Property 6.0 14.7 6.5 7.1 21.8 ————
Cash 4.8 0.7 4.8 0.4 1.1 3.8 7.2 3.5 3.6
Other 7.0 5.6 — — 5.6 ————
Total fair value of assets 206.8 34.8 241.6 212.4 173.0
Present value of scheme liabilities 266.1 46.1 312.2 277.8 247.9
Net pension deficit 59.3 11.3 70.6 65.4 74.9
Impact of deferred taxation 17.8 3.4 21.2 19.6 22.5
Net pension deficit after taxation 41.5 7.9 49.4 45.8 52.4
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 were set to continue for three years and were in addition to the one-off Company contributions. It has
been decided that, from April 2005, the contributions to the JPPP will be maintained at a fixed sum. With the declining membership,
this will assist in managing the deficit over a number of years.
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. Johnston Press plc 
Annual Report and Accounts 2004 84
Notes to the Accounts
Y ear to 31 December 2004 - continued
24. Pension Schemes (continued)
Analysis of the amount that would have been charged to operating profit under FRS17
2004 2003
JPPP RIM JPPS RIM
£’000 £’000 £’000 £’000
Current service cost 2,453 2,479 2,579 2,131
Analysis of amount that would have been credited to net finance income under FRS17
2004 2003
JPPP RIM JPPS RIM
£’000 £’000 £’000 £’000
Expected return on pension scheme assets 9,210 4,787 7,227 3,727
Interest on pension scheme liabilities (9,893) (5,076) (9,232) (4,383)
(683) (289) (2,005) (656)
Analysis of actuarial (loss)/gain that would have been recognised in the statement of total recognised gains and losses
2004 2003
JPPP RIM JPPS RIM
£’000 £’000 £’000 £’000
Actual return less expected return on pension scheme assets 4,299 1,323 10,449 7,382
Experience gains and losses arising on the scheme liabilities 4,384 (4,428) 2,287 (2,456)
Changes in assumptions underlying the present value of the scheme liabilities (11,059) (4,648) (10,255) (6,322)
Losses or scheme liabilities as a result of the transfer in of the 
Regional Independent Media Pension Plan Final Salary Section active members (13,908) 13,908 ——
(16,284) 6,155 2,481 (1,396) Johnston Press plc 
Annual Report and Accounts 200485
24. Pension Schemes (continued)
History of experience gains and losses
2004 2003 2002
JPPP RIM JPPS RIM JPPS RIM
Difference between the expected and actual return on 
share scheme assets:
Amount (£’000) 4,299 1,323 10,449 7,382 (28,404) (12,482)
Percentage of scheme assets 2.1% 3.8% 7.4% 10.4% (23.9%) (23.1%)
Experience gains and losses on scheme liabilities:
Amount (£’000) 4,384 (4,428) 2,287 (2,456) (591) 736
Percentage of the present value of scheme liabilities 1.6% (9.6%) 1.2% (2.6%) (0.3%) 0.9%
Total actuarial (loss)/gain recognised in the statement 
of total recognised gains and losses:
Amount (£’000) (16,284) 6,155 2,481 (1,396) (36,395) (7,987)
Percentage of the present value of scheme liabilities (6.1%) 13.3% 1.3% (1.5%) (21.5%) (10.1%)
The analysis of reserves that would have arisen if FRS17 had been fully implemented is as follows:
2004 2003 2002
£’000 £’000 £’000
Profit and loss reserve excluding pension deficit 368,960 282,434 209,834
Amount relating to defined benefit pension scheme deficit
net of related deferred tax (43,220) (39,620) (46,267)
Reversal of SSAP 24 pension asset net of related deferred tax (12,840) (9,764) (4,875)
Profit and loss reserve including deficit 312,900 233,050 158,692 Johnston Press plc 
Annual Report and Accounts 2004 86
Notes to the Accounts
Y ear to 31 December 2004 - continued
25. Related Party Disclosures
The Group undertook transactions, all of which were on an arms’ length basis, and had balances outstanding at 31 December 2004
with related parties as shown below. Emcliffe Ltd ceased trading on 31 January 2004 and the investment in Two Boroughs Radio Ltd
was sold in July 2004. The figures provided below for these companies only relate to the period up to these dates.
Purchases Creditors Sales Debtors
Related party £’000 £’000 £’000 £’000
Emcliffe Ltd 45 — 19 94
Classified Periodicals Ltd 81 11 75 18
Free Admart Ltd 99 14 — —
Two Boroughs Radio Ltd — — 274 —
Emcliffe Ltd was and Classified Periodicals Ltd is an associated undertaking of Johnston Press plc, which re-publishes 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 provided certain administrative, distribution and production services to Emcliffe Ltd, Classified Periodicals Ltd is and
Two Boroughs Radio Ltd was charged by all associated undertakings for advertisements placed.
26. 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 14,756
10.05.99 10.05.02 and 09.05.09 254.39p 41,267
28.04.00 28.04.03 and 27.04.10 294.91p 25,424
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 97,346
05.11.01 05.11.04 and 04.11.11 268.80p 74,401
24.04.02 24.04.05 and 23.04.12 356.50p 268,656
13.01.03 13.01.06 and 12.01.13 368.50p 236,385
21.03.03 21.03.06 and 20.03.13 347.00p 386,657
28.08.03 28.03.06 and 27.08.13 448.50p 12,349
26.04.04 26.04.07 and 25.04.14 539.00p 504,065
The options granted to Executive Directors and details of share prices in 2004 are shown on page 51. Johnston Press plc 
Annual Report and Accounts 200487
26. 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 2004 to employees are made up as follows:
Option Grant Date Number of Shares Issue price per Share
15.07.97 11,067 162.09p
02.10.98 115,462 167.49p
29.09.99 93,398 278.25p
29.09.00 156,902 310.67p
27.09.01 171,866 274.65p
27.09.02 1,813,426 279.00p
26.09.03 676,237 345.50p
29.09.04 621,719 414.50p
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, 29 August 2003 
and 27 August 2004 respectively. A discount of 20% to the average mid-market price was applied to the issues in 2002 and thereafter. 88
Johnston Press plc 
Annual Report and Accounts 2004
Group Profit and Loss Account Half Year Summary
Year to 31 December 2003 Year to 31 December 2004
6 months to 6 months to
December June Year December June Year
£’000 £’000 £’000 £’000 £’000 £’000
Turnover - Continuing Operations 243,387 248,456 491,843 257,602 261,228 518,830
Operating profit - Continuing Operations 77,394 83,187 160,581 86,238 90,986 177,224
Share of associates’ operating profit 350 231 581 79 142 221
Profit on ordinary activities 
before interest and taxation 77,744 83,418 161,162 86,317 91,128 177,445
Net interest (16,491) (16,719) (33,210) (13,056) (13,789) (26,845)
Profit on ordinary activities before taxation 61,253 66,699 127,952 73,261 77,339 150,600
Taxation on profit on ordinary activities (18,430) (19,834) (38,264) (20,483) (22,977) (43,460)
Profit on ordinary activities after taxation 42,823 46,865 89,688 52,778 54,362 107,140
Dividends (11,433) (5,740) (17,173) (13,772) (6,911) (20,683)
Retained profit for year 31,390 41,125 72,515 39,006 47,451 86,457
All half years comprised 26 weeks trading, except the half year to 31 December 2004 which contained 27 weeks. Johnston Press plc 
Annual Report and Accounts 200489
2000 2001 2002 2003 2004
£’000 £’000 £’000 £’000 £’000
Profit and Loss Account
Turnover 292,174 300,615 428,394 491,843 518,830
Operating profit on ordinary activities 83,896 89,461 129,470 160,581 177,224
Share of associates’ operating profit 380 397 401 581 221
Exceptional items — (5,014) (4,438) — —
Profit before interest and taxation 84,276 84,844 125,433 161,162 177,445
Net interest payable (18,819) (16,298) (32,708) (33,210) (26,845)
Profit before taxation 65,457 68,546 92,725 127,952 150,600
Taxation (19,322) (19,958) (26,861) (38,264) (43,460)
Profit after taxation 46,135 48,588 65,864 89,688 107,140
Dividends (9,202) (10,015) (15,464) (17,173) (20,683)
Retained profit for year 36,933 38,573 50,400 72,515 86,457
Statistics
Basic earnings per share 20.63p 21.69p 24.65p 31.57p 37.60p
Headline earnings per share 20.97p 23.65p 26.75p 32.36p 37.96p
Operating profit to turnover 28.7% 29.8% 30.2% 32.6% 34.0%
Balance Sheet
Intangible fixed assets 419,483 425,494 927,557 927,557 927,557
Tangible fixed assets 102,495 118,541 154,084 156,972 156,742
Investments 5,224 5,137 4,663 3,980 2,798
527,202 549,172 1,086,304 1,088,509 1,087,097
Net current liabilities (26,385) (36,654) (46,828) (64,500) (80,168)
Total assets less current liabilities 500,817 512,518 1,039,476 1,024,009 1,006,929
Creditors due after one year (242,429) (212,016) (472,559) (372,750) (268,002)
Provisions (9,391) (12,493) (5,952) (16,327) (14,618)
Net Assets 248,997 288,009 560,965 634,932 724,309
Shareholders’ Funds
Ordinary Shares 20,111 20,136 28,339 28,399 28,532
Preference Shares 1,106 1,106 1,106 1,106 1,106
Reserves 227,780 266,767 531,520 605,427 694,671
Capital Employed 248,997 288,009 560,965 634,932 724,309
The 2004 year was a 53 week period.
Five Y ear Summary Johnston Press plc 
Annual Report and Accounts 2004 90
Notice of Meeting
Notice is hereby given that the seventy-sixth Annual General Meeting of the Company will be held in the Boardroom, The Caledonian
Hilton Hotel, Princes Street, Edinburgh on 29 April 2005 at 11am to transact the following business of the Company:
1. To receive the Accounts for the year ended 31 December 2004 and the reports of the Directors and Auditors thereon.
2. To receive the Directors’ Remuneration Report for the year ended 31 December 2004.
3. To declare a dividend.
4. To re-elect Mr R G Parry, Mr T J Bowdler, Mr L F Hinton and Mr D Cammiade 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 and 8 will be proposed as Special Resolutions:-
Ordinary Resolution
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 £9,510,699. This authority shall expire on 29 April 2010 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
£1,426,604.
This power shall expire, unless previously revoked or varied, on the date of the Annual General Meeting of the Company held in
2006 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 plc 
Annual Report and Accounts 200491
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.
By Order of the Board
P R Cooper, ACA
Secretary
53 Manor Place
Edinburgh
EH3 7EG
16 March 2005
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.  This report is printed on Revive which contains a minimum of 75% post consumer waste 
and is produced to ISO 14001 accreditation
Designed and produced by corporateprm, Edinburgh and London. www.corporateprm.co.uk
Advisors
Solicitors
MacRoberts
152 Bath Street 
Glasgow
G2 4TB
Ashurst
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 
Citigroup
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
Lloyds TSB Scotland plc
Henry Duncan House
120 George Street
Edinburgh
EH2 4LH
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