JOHNSTON PRESS plc
Annual Report & Accounts 2002  
LOCALLY FOCUSED DELIVERING VALUE 01 LOCALLY FOCUSED. DELIVERING VALUE.
Johnston Press  Annual Report & Accounts 2002
Our philosophy 
has always been that
‘LIFE IS LOCAL’. 
Johnston Press 
is the only quoted
UK newspaper
publishing group 
that solely focuses 
on local and 
regional markets. 02 OPERATIONAL HIGHLIGHTS
Johnston Press  Annual Report & Accounts 2002
CONTENTS
02 Operational Highlights
03 Financial Highlights
05 Living is Local
06 Chairman’s Statement
09 Shopping is Local
11 Business is Local
13 Leisure is Local
15 Social Networks are Local
16 Chief Executive’s Review
24 Financial Review 
29 Management Committee
30 Board of Directors
32 Group’s Newspaper Titles
35 Corporate Governance 
38 Corporate Social Responsibility 
41 Directors’ Remuneration Report 
45 Directors’ Report 
48 Independent Auditors’ Report 
50 Group Profit and Loss Account 
51 Group Statement of 
Total Recognised Gains and Losses 
51 Group Reconciliation 
of Movements in Shareholders’ Funds 
51 Group Note of Historical 
Cost Profits and Losses 
52 Group Balance Sheet
53 Group Cash Flow Statement 
54 Company Balance Sheet 
55 Notes to the Accounts 
79 Group Profit and Loss Account 
Half Yearly Summary 
80 Five Year Summary
81 Notice of Meeting
83 Form of Proxy
OPERATIONAL HIGHLIGHTS
• Continued modest advertising revenue growth
• Weekly circulations increased for sixth successive year 
• Successful integration of Regional Independent Media
Holdings Limited achieving expected synergies
• Completion of major press upgrades with substantially
increased colour capability
• Continued excellent cost control, lower newsprint prices
and further business efficiencies
• Growing contribution from electronic publishing  03 FINANCIAL HIGHLIGHTS
Johnston Press  Annual Report & Accounts 2002
ADVISORS
Solicitors 
MacRoberts 
152 Bath Street 
Glasgow 
G2 4TB
Ashurst Morris Crisp 
Broadwalk House
5 Appold Street
London 
EC2A 2HA
AUDITORS 
Deloitte & Touche 
Chartered Accountants 
and Registered Auditors 
Saltire Court
20 Castle Terrace
Edinburgh EH1 0BR
INVESTMENT BANKERS 
Schroder Salomon Smith Barney
Citigroup Centre
33 Canada Square
Canary Wharf
London E14 5LB
PRINCIPAL BANKERS 
The Royal Bank of Scotland plc 
36 St Andrew Square 
Edinburgh 
EH2 2YB
PRINCIPAL CLEARING BANKERS 
Barclays Bank plc
Luton Corporate Banking Centre
1 Capability Green
Luton
LU1 3US
STOCKBROKERS 
Deutsche Bank AG London
Winchester House
1 Great Winchester Street
London
EC2N 2DB
REGISTRARS
Computershare Investor Services PLC
P.O. Box 457
Owen House
8 Bankhead 
Crossway North
Edinburgh 
EH11 0XG
FINANCIAL HIGHLIGHTS
Operating Profit up 45% 
Like-for-like Advertising Revenues up 2%
Pre Tax Profit up 35%
Headline Earnings Per Share up 13%*
Dividend Per Share up 18%*
Interest Cover 4.3x
Operating Cash Flow up 55%
TURNOVER £m
98 99 00 01 02
201.7
242.6
292.2
300.6
428.4
OPERATING PROFIT £m
98 99 00 01 02
51.1
65.9
83.9
89.5
129.5
HEADLINE EARNINGS
PER SHARE (p)
98 99 00 01 02
14.17
17.29
20.97
23.65
26.75
DIVIDENDS (p)
98 99 00 01 02
3.5
4.0
4.5
4.9
5.4
* Adjusted for the discount element of the Rights Issue 04 LOCALLY FOCUSED
Johnston Press  Annual Report & Accounts 2002 05 DELIVERING VALUE
Johnston Press  Annual Report & Accounts 2002
3
6
9
12
15
l NEW CAR SEARCH 13.5 MILES
l NEW HOUSE 13.5 MILES
l MUM’S HOUSE 12.6 MILES
l COMMUTE 8.1 MILES
l CAR REPAIR 5.3 MILES
l SCHOOL 3.1 MILES
l l l l l l LIVING IS LOCAL
Average miles travelled from home*
“I think that we underestimate the critical
role of the regional and local press in this
country. We forget that it’s 
better read than national 
newspapers and that it’s 
more likely to be believed.” 
DAVID BLUNKETT, MP
*Source: ‘Renaissance of regional nations © Future Foundation’ 06 CHAIRMAN’S STATEMENT
Johnston Press  Annual Report & Accounts 2002
For most media companies the past two
years have been very difficult – particularly
for those dependent on selling display
advertising. For many, this has resulted in
reduced profits and a declining share
price. I am pleased to report that Johnston
Press was an exception in both respects
and notably we were one of the best
performing European media shares in
2002. But we are not remotely
complacent, recognising that each week
brings new challenges as well as
opportunities. We benefit from having a
robust advertising business but, to sustain
this, we must remain focused on serving
our customers well.
The theme of this report, as it was last
year, is “life is local”. It is our guiding
principle. Our investment in people,
equipment, technology and acquisitions is
aimed at enhancing our service to local
communities and, in particular, to our
principal customers – our readers and our
advertisers.
It is the policy of your Board to be
editorially neutral and community biased.
We recognise that our daily, weekly and
less frequent publications with their
associated special supplements and web
sites will only thrive if they make a strong
connection with the communities they
serve. This is why we place such store by
editorial independence and a single-
mindedly local approach.
Britain is very well served by national
media. Our role is to understand and meet
the needs of people in the areas where
they live, work and play. For most of us,
what happens in our immediate local
environment is of far more importance
than more remote events. It is in the local
community that we spend most of our
time and in which we have our greatest
interests. Most of us eat out, seek
entertainment, go shopping, buy cars,
look for a job and move house close to
our homes. We have continued to do this
even in recent economically uncertain
times which is why our advertising
revenues have remained resilient.
Following our successful acquisition of
RIM, we now publish and distribute more
CHAIRMAN’S STATEMENT
Johnston Press has enjoyed a very satisfactory year with cash
generation, profits and turnover all at record levels. We have seen
the early benefits of the acquisition of Regional Independent Media
Holdings Limited (RIM), and all of our businesses have done well on a
like-for-like basis. The growth we have achieved is a function of steady
trading and well-controlled costs. This reflects a single-minded focus
on the provision of information and entertainment to local communities
and to meeting the needs of local advertisers. This approach underpins
all of our strategic and tactical decisions. 
than 480 million newspapers each year
and have an average weekly readership of
11.8 million. Our web sites receive more
than 100 million page impressions
annually. We reach deeply into numerous
local communities around the country.
RESULTS
In 2002, we achieved turnover of 
£428 million up 43%, profit before tax of
£93 million up 35% and free cash flows of
£86 million up 127%, all against 2001. The
consolidation of RIM from 12 April 2002
contributed to this growth but it is
especially pleasing to report operating
profit margins of 30% for the enlarged
Group, with good growth from both the
existing and acquired activities. Free cash
flow in the business is excellent with a
conversion of 66% from operating profit
compared to 42% last year. Headline
earnings per share were 26.75p, up 13%
on 2001 when adjusted for the Rights Issue
associated with the acquisition of RIM.
The circulations of our paid-for weekly
newspapers have been strong, growing by
1.5%. Our daily titles, in line with industry 07 CHAIRMAN’S STATEMENT
Johnston Press  Annual Report & Accounts 2002
will facilitate further consolidation in the
regional press. We have no doubt that the
process will continue regardless.
BOARD
We have noted the proposals of 
Derek Higgs on the role of non-executive
directors. Various concerns on the
practical implications of these have been
expressed, many of which we share. 
We place great store by good governance.
We have benefited from informal feedback
from shareholders, both large and small,
on governance and I welcome any
comments, particularly if people have any
concerns.
Sir Harry Roche plans to step down from
the Board at the AGM in 2004, which
coincides with his 70th birthday. Harry has
been a director since 1993 and Deputy
Chairman since 1996. Throughout that time
he has brought a wealth of newspaper
industry knowledge and business expertise.
I wish him well in what will be a very active
retirement. Peter Cawdron will replace
Harry as Senior Independent Director next
year. We have appointed external
consultants to seek Harry’s replacement. 
Your Board consists of six non-executive
and two executive directors. Freddy
Johnston and his brother Harry, both non-
executives, are not regarded as
independent as they represent a substantial
shareholding in the Company and due to
their length of service on the Board.
However, I am sure it will not be surprising
to learn that they very definitely have
shareholders’ interests at heart and are
passionate about the Group’s success.
I would like to congratulate Tim Bowdler,
our Chief Executive, on his appointment in
July 2002 as President of the Newspaper
Society, a position which he will hold until
the middle of this year. It has enabled him
to play a leading role in matters of concern
and interest to the industry as a whole.
PROSPECTS
We have made a satisfactory start to 2003,
achieving further modest revenue growth,
despite advertising markets remaining
subdued. The price of newsprint, our
largest purchase item, has reduced and
trends, have shown circulation declines
but newspaper sales revenues and
advertising sales have continued to grow
as the communications value of our
publications remains great. 
DIVIDEND
Your Board propose a final dividend of
3.6p per share making a total of 5.4p per
share compared to 4.9p last year, an
increase of 18% when allowing for the
discount element of the Rights Issue.
Dividend cover is 4.5 times.
STRATEGY
We believe that industry consolidation and
the emergence of a small number of large,
well-resourced publishers has resulted in
better local newspapers than would have
been the case from a fragmented and
undercapitalised industry. Local focus
comes through the efforts of editors and
managers not as an accident of ownership. 
We continue to seek opportunities to
expand our business and we remain
hopeful that the Government’s stated
objective to lighten the burden of regulation
costs in the business remain well controlled.
During the year we will also see further
benefits from the full integration of RIM.
The outlook is clouded by events overseas
and their potential impact on the UK
economy, including business and consumer
confidence. Whilst it is impossible to predict
the economic consequences with certainty,
we remain confident that Johnston Press is
in good shape to respond to whatever
challenges the future may bring.
ROGER PARRY 
Chairman
19 March 2003 08 LOCALLY FOCUSED
Johnston Press  Annual Report & Accounts 2002 09 DELIVERING VALUE
Johnston Press  Annual Report & Accounts 2002
With its local roots and market
knowledge across the UK 
Johnston Press offers media
buyers easy access to target 
increasingly important 
local markets.
WITH THEIR UNRIVALLED KNOWLEDGE 
OF LOCAL MARKETS, THE GROUP’S SALES
FORCES SOLD RETAIL DISPLAY
ADVERTISING WORTH £100M
REPRESENTING 31% OF ITS ANNUAL
ADVERTISING REVENUE.
3
6
9
12
15
l FURNITURE 8.9 MILES
l CLOTHES 8.8 MILES
l COMPUTERS 8.5 MILES
l MAJOR ELECTRICAL 7.3 MILES
l SMALL ELECTRICAL 5.3 MILES
l DIY/GARDENING 5.2 MILES
l GROCERIES 3.5 MILES
l l l l l l SHOPPING IS LOCAL
Average miles travelled from home*
l *Source: ‘Renaissance of regional nations © Future Foundation’ 10 LOCALLY FOCUSED
Johnston Press  Annual Report & Accounts 2002 11 DELIVERING VALUE
Johnston Press  Annual Report & Accounts 2002
THE GROUP CARRIED OVER ONE MILLION JOB
ADVERTISEMENTS IN 2002 GENERATING
REVENUE OF £89M.
BUSINESS IS LOCAL
l l l l Where business people source
equipment, property and supplies*
l INTERNATIONAL 2%
l NATIONAL 20% 
l REGIONAL 14%
l LOCAL 64% 
The significant investment in
modern streamlined production
processes ensures a high quality
and efficient service for
advertisers.
*Source: ‘Renaissance of regional nations 
© Future Foundation’ 12 LOCALLY FOCUSED
Johnston Press  Annual Report & Accounts 2002 3
6
9
12
15
l l l l 13 DELIVERING VALUE
Johnston Press  Annual Report & Accounts 2002
11.8 MILLION PEOPLE READ A 
JOHNSTON PRESS NEWSPAPER 
EVERY WEEK. 
l THEATRE 12.6 MILES
l RESTAURANT 8.0 MILES
l CINEMA 6.8 MILES
l GYM/HEALTH CLUB 3.1 MILES
LEISURE IS LOCAL
Average miles travelled from home*
In the last 12 months
classified advertising 
grew by 2%.
*Source: ‘Renaissance of regional nations © Future Foundation’ 14 LOCALLY FOCUSED
Johnston Press  Annual Report & Accounts 2002 15 DELIVERING VALUE
Johnston Press  Annual Report & Accounts 2002
IN 2002 THE GROUP PUBLISHED 125,000 PAGES
OF PROPERTY ADVERTISING, REPRESENTING A
REVENUE INCREASE OF 3%.
SOCIAL NETWORKS ARE LOCAL
House purchase patterns*
l PEOPLE WHO STAY IN THEIR LOCAL
AREA 90%
l PEOPLE WHO RELOCATE OUTSIDE
THEIR REGION 10%
l l Revenues from 
property advertising 
topped £40m in the 
year, exceeding 
expectations.
*Source: Cabinet Office 16 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
LIFE IS LOCAL … STRATEGIC FOCUS
The theme, which is illustrated in these
accounts, again emphasises the essential
dependence of our business on the local
nature of our markets. Our publishing
activities are a reflection of numerous local
economies across the United Kingdom and,
in turn, the behaviour of local consumers
and advertisers. During the year, consumer
confidence at the local level remained
positive, undoubtedly assisted by low levels
of inflation and unemployment, reduced
interest rates and the buoyancy of the
property market. With some local variations,
this has been reflected in continued modest
advertising growth for the Group as a whole.
It is this dependence on local markets
which differentiates the regional and local
press from so many other branches of the
media and which has enabled Johnston
Press to grow in terms of profit and
margins during 2002. The Group enjoys a
leading position in almost all of its local
markets and this enables our companies
to offer readers extensive local news
coverage and advertisers high levels of
local market penetration.
This focus on meeting the needs of local
marketplaces is the cornerstone of the
Group’s business strategy. Through a
combination of organic and acquisitive
means, Johnston Press is committed to
building on its position as one of the UK’s
market leading local publishers. This was
clearly demonstrated by our purchase of
RIM but, although the Group remains
actively interested in further acquisitive
growth, this will only be pursued on a
selective basis. For this reason, we
decided not to make an offer for the
newspaper titles owned by Scottish Media
Group plc, since we did not believe that,
for Johnston Press, they represented the
right opportunity at the right time.
MEDIA OWNERSHIP
Publication of the Government’s draft
Communications Bill has put the whole
question of media ownership and related
newspaper transfers firmly on the political
agenda. This is to be welcomed as the
special newspaper provisions of the 1973
Fair Trading Act are long outdated and
unduly onerous. This has been recognised
by the Government in their stated intention
CHIEF EXECUTIVE’S REVIEW
During a year in which Johnston Press again outperformed market
expectations, the undoubted highlight was the successful acquisition of
Regional Independent Media Holdings Limited (RIM), consolidating the
Group’s position as one of the UK’s four leading publishers of regional
and local newspapers. In contrast to the difficulties encountered by
many media businesses, the enlarged Group achieved modest
advertising revenue growth in the year. Coupled with the early benefits
of the RIM acquisition, continued tight control of costs and reduced
newsprint prices, this enabled the Group to make further excellent
progress and to report increased levels of profitability. 
to adopt a deregulatory approach and
their proposals do include the welcome
abolition of compulsory advance ministerial
consent to newspaper transfers, backed
by criminal sanction.
We are currently engaged in a process of
lobbying and consultation to ensure that
the eventual legislation does deliver the
deregulation which the Government has
promised. In particular, we are concerned
that the operation of the proposed
exceptional public interest test for
newspaper mergers will perversely result in
a more uncertain and rigorous regime than
is currently the case. We are also
concerned at the extent of the proposed
involvement of OFCOM in newspaper
transfers. We regard it as particularly
important that the Government lives up to
its assurances that OFCOM will have no
part to play in industry self-regulation for
editorial or advertising content as
exercised through the Press Complaints
Commission and the Advertising
Standards Authority respectively. 17 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
We remain firmly of the view that further
industry consolidation is both desirable
and inevitable, being one of the key
determinants in ensuring the continuance
of a healthy and vibrant UK regional press.
Following the disappointing Competition
Commission inquiry into our proposal to
acquire eight free newspapers from Trinity
Mirror, we have made the DTI aware of our
detailed concerns in an effort to help the
regulators better understand the way in
which our markets operate, particularly
with regard to market definition, the
existence of competition from other forms
of advertising media and ease of market
entry. We remain confident that the
regulatory environment, including changes
brought by the Communications Bill, will
permit a continuation of the consolidation
process, one in which Johnston Press
expects to play a leading role.
REGIONAL INDEPENDENT MEDIA (RIM)
The acquisition of RIM has consolidated
the position of Johnston Press as one of
the four leading UK regional publishers
with a market share of 14.3% of total
copies circulated. With 244 titles,
Johnston Press now has more
newspapers than any other UK regional
publisher and is the largest owner of paid-
for weeklies which represent half of the
Group’s portfolio. The ex-RIM titles include
a strong mix of market leading paid-for
daily, weekly and free newspapers
representing an excellent complement to
the Group’s existing publications. As a
result, Johnston Press is now the market
leading regional newspaper publisher in
Yorkshire, has acquired an extensive
presence in Lancashire and has made a
useful addition to our existing Scottish
businesses.
The post-acquisition integration process 
is now substantially complete although
there will be continuing benefits as 
we progressively take advantage of
opportunities at the operating level. 
The key changes were achieved rapidly
following completion of the deal and
included closure of the RIM head office,
termination of advisory arrangements,
savings on newsprint as well as other
major purchase items and closure or
rationalisation of the RIM central functions
of accounting, payroll, marketing, IT,
national sales, personnel, training and new
media. The resultant loss of approximately
250 jobs was minimised following
extensive consultation with those affected.
Several non-core activities have been
disposed of including Writers News, a
specialist publication for aspiring authors.
We also sold four Scottish-based
newspaper titles which did not represent a
good fit with our existing activities. The
Stornoway, Galloway and Carrick Gazettes
were sold to Scottish Radio Holdings plc
and the Alloa-based Wee County News to
its management. During the year, we also
took steps to withdraw from all RIM local
radio initiatives, leaving a 33% holding in
Two Boroughs Radio in Burnley, which we
expect to dispose of in due course.
Immediately following the acquisition and
in order to facilitate rapid integration, we
made a number of organisational changes.
Two enlarged publishing divisions were
formed, one based in Leeds creating an
expanded North division and the other in
Sheffield to bring together the South
Yorkshire and North Midlands-based
companies. In addition, we established a
new division based in Preston covering the
Lancashire operations of RIM. In each
case, appointments were made such that
one or other of the Managing Director or
Finance Director was an existing Johnston
Press employee. These organisational
changes have facilitated the achievement
of operational savings through
rationalisation of backroom activities at the
regional level. A good example of this has
been the closure of printing and pre-press
activities in Harrogate with the reallocation
of work primarily to Leeds but with some
printing also transferring to other Group
presses. We have also incorporated
Letterbox Direct, RIM’s leaflet sales and
distribution management company, into
the Group’s structure and we will use this
to drive revenue, particularly from national
clients and to regionalise related
administration. 
The excellent progress which has been
made with the integration of RIM could not
have been achieved without the
cooperation and support of our new 18 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
colleagues and their willingness to
embrace the changes which a new
ownership inevitably brings. In overall
terms, we are totally confident of delivering
the £9 million annual savings in 2003
which were envisaged at the time of the
acquisition.
TRADING REVIEW – EXISTING BUSINESSES
Advertising revenue growth on a like-for-
like basis was 2.1%, comprising 1.2% in
the first half and increasing to 3.0% in the
second. Growth was achieved in every
advertising category in the second half
and over the year as a whole, an
improvement on the first six months
when there were modest declines in both
motors and recruitment advertising. 
The performance of recruitment
advertising with growth of 0.3%,
surpassed our expectations, which were
influenced by challenging comparatives in
2001, especially in the early months, and
caution over general market conditions.
This encouraging outcome reflects the
fact that unemployment remains low in
many of our marketplaces and provides
evidence that business and consumer
confidence at the local level held up
better than anticipated. There was a
disparity in performance between the
north and south of the country with
revenue declining slightly in the south
where the impact of the economic
slowdown was most marked.
Property advertising also experienced
geographic disparity but with
performance in the south, buoyed by
stronger new homes building
programmes, faring better than further
north. Overall, growth of 3.7% was
achieved despite property prices and
sales being so buoyant that in many
markets the necessity for advertising,
certainly on a repeat basis, was
somewhat diminished.
After a marginal decline in the first half,
motors advertising returned to growth in
the second six months, ending the year
2.3% ahead. Performance across the
country was patchy with no discernable
trends. The major influence has
continued to be the process of
consolidation amongst motor
dealerships.
The performance of other classified
advertising was particularly encouraging
with strong growth recorded in each half
resulting in a full year increase of 4.5%.
Whilst there were variations in
performance around the Group, good
growth was achieved in the majority of
markets, in part reflecting a recovery
from the foot and mouth affected
outcome in 2001.
Display advertising was stronger in the
first half with growth of 2.9% against
0.5% in the second half, resulting in a
year-on-year increase of 1.7%. Again,
most markets experienced growth
although there was a marginal decline in
the south, reflecting more difficult local
conditions compared with the previous
year.
Operating margins for the Group were
once again ahead of the previous year,
with a like-for-like increase of 1.5% to
31.7%. On a comparable basis and with
the sole exception of our South division,
every one of our publishing divisions
matched or exceeded the prior year’s
operating margins, a reflection of
excellent control over costs in a more
challenging market than for some time.
Market conditions were more difficult in
the south of the country than elsewhere
and our South division did well to come
very close to matching the prior year’s
performance.
Despite the more difficult trading
environment, the Scottish businesses
again performed well producing a further
improvement in profitability. The
Tweeddale Press in the Scottish borders
was strengthened by the successful
integration of the south of Edinburgh-
based Bonnyrigg operation acquired with
RIM and this will bring further benefits in
2003. In a market which produced no
ADVERTISING REVENUE GROWTH ON A LIKE-
FOR-LIKE BASIS WAS 2.1%, COMPRISING
1.2% IN THE FIRST HALF AND INCREASING TO
3.0% IN THE SECOND.  19 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
overall advertising revenue growth, Isle of
Man Newspapers also performed well to
increase profit.
Excellent progress was again made by
Northeast Press which benefited from a
healthy increase in recruitment advertising
and further improvements in operating
efficiency. The four companies comprising
the North division were also assisted by
good growth in recruitment advertising
and the continued progress of the
Doncaster and Scarborough-based
businesses was particularly noteworthy.
The Dewsbury operation acquired with
RIM has been merged with Wakefield-
based Yorkshire Weekly Newspaper Group
and this will bring benefits in 2003.
Doncaster-based South Yorkshire
Newspapers has been transferred into the
enlarged North Midlands and South
Yorkshire division which will also create
operational efficiencies. The Chesterfield
and Mansfield-based businesses, which
comprised the North Midlands division,
had another excellent year, building on the
good progress already made in 2001. In a
trading environment which improved after
Counties Newspapers into two separate
businesses, based in Aylesbury and
Banbury respectively, also helped to
improve market focus. The challenging
market conditions which prevailed on the
south coast led to a modest reduction in
both recruitment and local display
revenues. This was substantially mitigated
as the reorganisation of the South Division
implemented in 2001 helped to maximise
revenues and contain cost levels.
TRADING REVIEW – NEWLY ACQUIRED BUSINESSES
To enable meaningful comparison, the
figures quoted below reflect full year
growth rates despite the fact that RIM was
only part of Johnston Press for 37 weeks.
Over the full year, advertising revenue
growth on a like-for-like basis was 1.4%,
comprising 1.1% in the first half and 1.8%
in the second. Apart from a marginal
decline in motors advertising, growth was
achieved in every category.
With its northerly focus, RIM fared better
than the overall existing business for
recruitment advertising with growth of
2.3%. This was despite a marginal decline
at Yorkshire Post Newspapers due to its
greater dependence on more senior job
advertisements where the effect of the
downturn has been most marked.
Property and other classified advertising saw
very similar performances to the existing
businesses with growth rates of 1.3% and
3.0% respectively. A marginal decline of
2.1% in motors advertising reflected a
difficult marketplace in Leeds where dealer
consolidation and related advertising
retrenchment held back performance.
Display advertising grew by 1.0%.
Following the acquisition, we closed the
RIM national sales operation and
transferred the business to Mediaforce Ltd
which represents all Johnston Press titles.
The transfer was achieved without
disruption to the business. 
Against an operating margin before
exceptional items of 23% in 2001, the
newly acquired business is already
performing strongly under Johnston Press
ownership, reflecting the substantial
savings which have been achieved since
THE LAUNCH OF THE LINCOLNSHIRE CITIZEN,
A NEW FREE NEWSPAPER, AND THE MERGING
OF SEVERAL SMALL WEEKLY PAID-FOR
TITLES IN THE REGION, ARE BEGINNING TO
PAY DIVIDENDS. 
a slow start to the year, the three
companies comprising the East Midlands
division all made good progress. The
launch of the Lincolnshire Citizen, a new
free newspaper, and the merging of
several small weekly paid-for titles in the
region, are beginning to pay dividends. We
have announced plans to split Welland
Valley Newspapers into two separate
businesses and we expect the resulting
improved market focus to bring about a
further improvement in performance.
In the more difficult market conditions
which prevailed in the South Midlands
area, the four companies which make up
that division did well to improve
profitability. The reorganisation of Central
AWARD WINNING TITLES 20 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
acquisition. This has resulted in a pre-
exceptional operating margin of 28%
although, as this only relates to a 37-week
period, an accurate year-on-year
comparison is impossible. Every RIM
business has achieved an improvement in
both operating margin and absolute
operating profit.
For the reasons outlined above, the Leeds
marketplace proved challenging with
advertising revenues remaining flat. A
significant improvement in profitability was
driven by cost savings following acquisition.
The Dewsbury market was also difficult,
although in Harrogate more buoyant
conditions helped that company to a good
profit increase. The improved performance
in Sheffield was assisted by modest growth
in recruitment advertising. The companies
comprising the Northwest division did
particularly well with every company making
good progress and achieving strong
revenue growth in almost every category.
CIRCULATIONS
A 1.3% increase in the circulation of our
existing weekly paid-for titles for the six
months to 31 December 2002 means that
we have now experienced six years of
unbroken growth in our average weekly
sale. Circulations of the acquired weekly
titles also increased, by 2.9% in the second
six months following growth of 1.8% in the
first half. This positive performance
demonstrates the underlying strength of
local weekly newspapers and reflects our
continued investment in content and colour
in order to increase reader appeal and to
meet advertisers’ needs. We now publish
119 weekly paid-for newspapers
representing half of the Group’s total
portfolio and circulating more than 1.5
million copies per week. We also have 109
free weekly newspapers which distribute
almost 4.2 million copies each week. 
Considerable focus continues to be placed
on the sale of our daily newspaper titles of
which we now sell approaching 600,000
copies six days per week. In overall terms,
their contribution to like-for-like newspaper
sales revenues rose by 3.6%, despite the
underlying trend of modest circulation
decline. During the six months to 31
December 2002, average circulations of
our nine existing evening titles fell by 2.5%
although the underlying trade sale
performed better with a reduction of 1.8%
after stripping out a further reduction in
bulk sales which now account for only 2%
of the total sale. The acquired titles
including the Yorkshire Post and five
evening paid-for newspapers also
experienced a decline with circulations
falling by 3.3% after adjusting for a
significant reduction in bulk sales which
still account for 5.4% of the total.
Group policy is to pursue a programme of
gradual reduction in the inclusion of bulk
sales in the circulation figures, despite this
having a detrimental effect on the reported
headline ABC performance whilst that
takes place. Although the use of
promotional copies continues where
appropriate, the Johnston Press policy
encourages newspaper sales departments
to concentrate on their primary task of
building the single copy sale.
During the period, a considerable amount
of work has been done to seek ways of
improving the circulation performance of
our daily titles. This will be assisted by the
completion of the press development
projects at Northampton, Peterborough
and Portsmouth and the improved
reliability which is now being achieved. The
year has seen improved circulation
performances in a number of cases, most
notably the growth achieved in Blackpool
where the sale of the Gazette increased by
1.4% and 0.7% in the first and second
halves respectively. We remain confident
that real improvements in the daily sale
can be achieved and this remains a top
priority for the Group.
CONTENT
Across Johnston Press, our newspapers
have been at the forefront of a number of
important local issues and campaigns. The
Group’s editorial policy encourages editors
to reflect the concerns and aspirations of
local communities in the widest sense and
EVERY RIM BUSINESS HAS ACHIEVED AN
IMPROVEMENT IN BOTH OPERATING MARGIN
AND ABSOLUTE OPERATING PROFIT. 21 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
enshrines the right of editors to edit their
newspapers without interference from
general management whilst following the
Press Complaints Commission’s Code of
Practice. Amongst the vast range of
important issues covered by our
newspapers during the course of the year, 
it is difficult to single out a few but there
were a number which were particularly
noteworthy.
The Yorkshire Post’s long running
investigation into the so-called Donnygate
scandal culminated in March 2002 with
the conviction of two senior Doncaster
councillors, a property developer and two
others for corruption, bringing to 30 the
total number found guilty. The murder of
have-a-go hero, Kevin Jackson, by car
thieves in Halifax became a national story
but it was the Evening Courier, aided by
excellent contacts with local police, which
played an important part in the eventual
arrest and conviction of the killers,
providing the paper with a series of
dramatic front pages. Relations between
the regional press and the police have not
all been as good, with a number of police
forces actively obstructing legitimate
requests for information. These problems
were highlighted by editors at the annual
Johnston Press editorial conference and
since they have raised their concerns with
the Home Secretary.
During the year, our newspapers had to
deal with a number of high profile and
often sensitive issues. The Luton Herald &
Post was the first to report the case of
Diane Pretty and, after her death, ran a
well supported campaign for legislation to
permit the right to choose to die. In a
number of our areas, there are genuine
concerns about increasing numbers of
asylum seekers, not least in Wigan where
our newspapers have endeavoured to
present a balanced analysis of the issues
and have published numerous readers’
letters representing a range of views. The
Evening Telegraph in Peterborough played
a key role in helping to secure additional
Government funding for Cambridgeshire
police following the huge cost burden of
the Soham murder investigation and
increased animal rights activity at
Huntingdon Life Sciences. Our
newspapers have also played an
important part in the exposure of child
abuse with the Halifax Evening Courier
again being praised for its role in the
investigation, arrest and subsequent jailing
of Glyn Kenyon, who is regarded by some
as one of the country’s worst child sex
offenders.
On a positive note, our newspapers
played an important role in the events
surrounding the Golden Jubilee. Apart
from providing a vital catalyst for
celebrations in many communities over
the special holiday weekend in June, we
also gave extensive coverage to the
Queen and Prince Philip’s visits around
the country. From the Golden Jubilee
Community Volunteer Awards launched by
the Harrogate Advertiser Series to The
Falkirk Herald’s coverage of the Royal
Opening of the remarkable Falkirk Wheel,
the world’s first rotating boatlift, our titles
provided extensive coverage of the
celebrations. 
During the course of the year, a number of
our newspapers have received awards for
their excellence. Amongst the many
successes, the most noteworthy was
undoubtedly The Yorkshire Post which
won a number of prestigious awards,
including Regional Newspaper of the Year.
We expect our newspapers to play an
active part in the affairs of their
communities, campaigning vigorously on
matters of local importance. Local
newspapers also have a vital role in
bringing people together and building
community links. A review of our extensive
community involvement is included in the
Corporate Social Responsibility Statement
on pages 38 and 39.
ELECTRONIC PUBLISHING 
Following the acquisition of RIM, we now
have over 140 websites which together
cover almost every local marketplace in
which we publish. Further launches are
OUR NEWSPAPERS PLAYED AN IMPORTANT
ROLE IN THE EVENTS SURROUNDING THE
GOLDEN JUBILEE. 
CIRCULATION MAP
JOHNSTON PRESS
REGIONAL INDEPENDENT MEDIA
BOTH 22 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
shareholder with all websites now
powered by Johnston Press’ own on-line
classified capability. The Group’s enlarged
electronic publishing activities are
expected to make a contribution to profit
in 2003.
PRINTING
2002 was a further year of transition for
the printing division with completion of
the major press development programme
and the closure of the Burgess Hill
pressroom. The integration of the major
RIM printing plants in Leeds and Sheffield
and the closure of the Harrogate press
also took place during the year.
Profitability of the division fell slightly,
primarily as a result of a significant
change in the mix of throughput with an
increase in internal work offsetting a
reduction of external contract printing, a
change which is beneficial for the Group
as a whole.
The major press development programme,
which has cost approximately £40 million
over three years, gives us a substantial
increase in colour capacity and press
capability at the three major pressrooms 
in Northampton, Peterborough and
Portsmouth. In addition to major
enhancements to the existing double 
width presses at Northampton and
Peterborough, an old press at
Peterborough has been replaced and 
a new press has also been installed at
Portsmouth. Additional costs were incurred
during the commissioning process
including significantly increased overtime
but we are now experiencing much greater
reliability. During the year, we also
introduced computer-to-plate technology
into the same three pressrooms and, after
a period of commissioning, this is now
giving greatly increased efficiency and
improved print quality.
During the year, we had the advantage of
a significant reduction in newsprint
prices, effectively reversing the increases
experienced in 2001. Prices for 2003
have seen a further modest reduction. In
part, this reflects our increased
purchasing power as a result of the RIM
acquisition, accompanied by a reduction
in the number of suppliers to the
enlarged Group.
planned in 2003 to cover the few
remaining gaps. All websites are an
integral part of the local publishing mix and
come under the commercial and editorial
control of the respective local newspaper
management. News content is generally
updated at least daily by newsroom staff
with advertisers being encouraged to
place advertisements on-line as well as in
our local newspapers.
Revenue growth of 14% has been
achieved on a like-for-like basis and, as in
2001, our existing on-line activities have
made a positive contribution to profit.
Considerable progress has been made in
the design and functionality of our sites
with improved use of database technology.
Electronic publishing is a key part of our
portfolio with organisational focus and
resourcing set accordingly. Total page
impressions are now running at around 10
million per month.
During the year, we made considerable
improvements to our property portal
which is now searchable by both location
or choice of school. At any one time, we
now carry over 40,000 properties, 60,000
cars and more than 12,000 jobs, all of
which are updated weekly. The ability of
each publishing centre to upload jobs
individually has contributed to a 20%
growth in our new media recruitment
revenues.
A major task during the year was the
integration of the RIM electronic
publishing activities which, unlike those of
Johnston Press, were organised centrally
and had yet to make a positive financial
contribution. The successful transition
has resulted in the closure of Regional
Interactive Media, the RIM central
operation, and the launching of new
websites under local management control
using the Johnston Press template. We
have also withdrawn from Fish4, the
regional press-owned on-line classified
advertising venture in which RIM was a
ELECTRONIC PUBLISHING IS A KEY PART OF
OUR PORTFOLIO WITH ORGANISATIONAL
FOCUS AND RESOURCING SET ACCORDINGLY. 23 CHIEF EXECUTIVE’S REVIEW
Johnston Press  Annual Report & Accounts 2002
2003 will be a year of consolidation for the
major pressrooms in Northampton,
Peterborough and Portsmouth. However,
we have plans to introduce additional
colour capacity at Leeds and Sunderland
and have also placed orders for a full
conversion to computer-to-plate
technology at Leeds. These projects,
coupled with others around the Group, will
result in total capital expenditure
exceeding depreciation in 2003. We have
also initiated a feasibility study into the
development of the Sheffield-based
printing facilities which could well result in
a major greenfield investment in 2004/5.
Given our increased dependence on fewer,
larger pressrooms, we have taken steps to
strengthen our management capabilities
with four new senior management
appointments in early 2003.
ORGANISATION AND PEOPLE
Our senior management team has
remained unchanged throughout 2002
with the exception of the addition of a
Group Business Development Manager,
Henry Faure Walker, who joined us in
March. It is that team which has carried
the primary responsibility for the
integration of RIM and the excellent
progress we have made is greatly to their
credit. Following the acquisition, we also
strengthened our Group management
structure with the appointment of Graham
Gould as Group Head of IT. Graham has
been with the Group for some years and
was previously Managing Director, North of
England division, based in Halifax.
The acquisition of RIM has strengthened
the pool of talent available to the Group to
meet both our current and future needs.
Indeed, we have been impressed with the
general calibre and commitment of all the
staff within the newly acquired business. A
number of senior appointments have been
made since the acquisition and many of
these have been filled by former RIM staff. 
Continued improvements have been made
to the scope and delivery of in-house
training programmes of both skill-based
and management development courses.
Our training programmes are highly
regarded and where appropriate are
supplemented by external resources,
particularly for the training of journalists
where we use a number of accredited
courses including one at Darlington
College of Technology which has been
designed specifically for Johnston Press.
Improvements have also been made to
our induction courses for new employees,
part of our successful efforts to reduce
levels of staff turnover.
We remain acutely aware that our staff are
our most critical and valuable resource.
We acknowledge their considerable
contribution to the success of the Group.
TIM BOWDLER 
Chief Executive
19 March 2003 24 FINANCIAL REVIEW
Johnston Press  Annual Report & Accounts 2002
FINANCIAL REVIEW
Johnston Press had another successful and eventful year in what has
been a difficult period in most areas of the media sector. We completed
the acquisition of Regional Independent Media Holdings Limited (RIM),
grew our existing businesses, refinanced the enlarged Group through
both equity and debt, and finally, but most importantly, delivered value
to shareholders.
FINANCIAL REVIEW
In comparing operating profit with 2001,
the acquisition of RIM on 12 April 2002
needs to be excluded.
The operating profit on a like-for-like basis
can be summarised as follows:
2002 2001 
£’000 £’000 
Operating profit 
before exceptionals 97,120 90,710
Contribution from RIM 34,097 - 
131,217 90,710 
This demonstrates that the organic growth
in the businesses which have been part of
Johnston Press throughout both years was
£6.4 million, an increase of 7%.
ACQUISITIONS
The acquisition of RIM for £555 million,
excluding fees, was funded by raising £220
million (net of expenses) through a 2 for 5
Rights Issue at 280 pence and by
increased debt. RIM’s 37 weeks’ post-
acquisition trading generated turnover of
£122 million and operating profit before
exceptional items of £34 million. 
This represents a margin of 28%, which is
a significant improvement on the full year
margin of 22.9% reported by RIM in 2001.
There have been exceptional costs of 
£4.4 million associated with the
fundamental re-organisation of the activities
of the acquired companies. The Board is
confident that the indicated full year cost
savings of £9.0 million per annum will be
delivered in 2003, based on the cost
savings already achieved in 2002, which
contributed £4.8 million to the improved
performance.
Excluding the fair value of publishing titles,
fair value adjustments of £12.1 million have
been made to the assets of the acquired
Group. These are detailed in note 14 on
page 66. The major adjustments were to
write-down the value of the investments,
property, plant and machinery to reflect
consistent accounting treatment with
Johnston Press or, where relevant, current
valuations. As well as these write-downs,
Johnston Press is required to provide for
the RIM pension fund deficit at the date of
acquisition. These fair value adjustments
were partially offset by increased land
values and recognition of a deferred tax
asset representing the tax losses held
within the RIM companies, which are now
available to the enlarged Group. 25 FINANCIAL REVIEW
Johnston Press  Annual Report & Accounts 2002
The Chief Executive’s report on pages 16 to 23 provides a summary of advertising
performance by division.
Although RIM was only consolidated for the 37 weeks since acquisition, the table below
shows the like-for-like advertising revenues for the full year to better demonstrate the
comparable performance:
Both the existing and acquired businesses
experienced advertising revenue growth in
the year. Every category of advertising in
the existing businesses grew including
employment where a stronger second half,
albeit against weaker comparatives, offset
the declines in the first half. In the acquired
companies, the same pattern was not as
pronounced, due to the first half market
REVENUES
Advertising revenues on a like-for-like basis (excluding acquisitions as noted above)
were as follows:
2002 2001 Increase 
£’000 £’000 % 
Existing business
Employment 60,686 60,521 0.3 
Property 32,555 31,386 3.7 
Motors 32,737 31,990 2.3 
Other classified 36,016 34,452 4.5 
Total classified 161,994 158,349 2.3 
Display 72,310 71,129 1.7 
Total advertising revenue 234,304 229,478 2.1 
2002 2001 Increase 
£’000 £’000 % 
Acquired Business* 
Employment 40,977 40,049 2.3 
Property 11,973 11,814 1.3 
Motors 12,803 13,074 (2.1) 
Other classified 18,113 17,579 3.0 
Total classified 83,866 82,516 1.6 
Display 38,576 38,189 1.0 
Total advertising revenue 122,442 120,705 1.4 
*Excludes Stornoway Gazette Ltd, Galloway Gazette Ltd , Writers News Ltd and Wee County News Ltd, 
which were sold during 2002.
weaknesses occurring mainly in the
Southern regions of the country and,
therefore, having less effect on the
acquired businesses which are focused on
Yorkshire and Lancashire. The only
category to decline in the acquired
business was motors which was adversely
impacted by the consolidation of the
dealership base in Yorkshire. 26 FINANCIAL REVIEW
Johnston Press  Annual Report & Accounts 2002
A breakdown of the advertising revenues for both the existing and acquired businesses, again on a like-for-like basis, for the two half
years is as follows:
Circulation revenue has increased by 66%
with the acquisition. In the existing
business, the increase over 2001 was 5%
as the continued increases in circulation of
our weekly titles, plus a limited number of
cover price increases, more than offset the
impact of reduced circulations of our
evening titles.
Contract printing revenues increased by
30% due to the acquired printing
operations at Leeds and Sheffield,
however, the like-for-like comparison is a
decline year-on-year of 6%. This was the
result of the Group’s continued strategy of
rationalising the printing operations and
replacing third party contracts with Group
Half year to 31 December Half year to 30 June
2002 2001 Increase 2002 2001 Increase
£’000 £’000 % £’000 £’000 %  
Existing Business    
Employment 28,819 28,050 2.7 31,867 32,471 (1.9)  
Property 15,759 14,745 6.9 16,796 16,641 0.9  
Motors 16,160 15,387 5.0 16,577 16,603 (0.2)  
Other classified 17,775 17,128 3.8 18,241 17,324 5.3  
Total classified 78,513 75,310 4.3 83,481 83,039 0.5  
Display 36,206 36,029 0.5 36,104 35,100 2.9  
Total advertising revenue 114,719 111,339 3.0 119,585 118,139 1.2  
Half year to 31 December Half year to 30 June
2002 2001 Increase 2002 2001 Increase
£’000 £’000 % £’000 £’000 %  
Acquired Business    
Employment 19,473 18,507 5.2 21,504 21,542 (0.2)   
Property 5,639 5,526 2.0 6,334 6,288 0.7  
Motors 6,169 6,373 (3.2) 6,634 6,701 (1.0) 
Other classified 8,978 8,818 1.8 9,135 8,761 4.3  
Total classified 40,259 39,224 2.6 43,607 43,292 0.7
Display 19,436 19,426 0.1 19,140 18,763 2.0  
Total advertising revenue 59,695 58,650 1.8 62,747 62,055 1.1    
work previously printed externally. The
pressroom in Burgess Hill was closed in
March 2002 as was the acquired printing
facility in Harrogate in October 2002.
These press closures will result in full year
cost savings in the business of
approximately £2.0 million of which 
£1.1 million benefited 2002. The vast
majority of the Group’s titles were being
printed internally by the end of the period. 
Other revenue categories, including
leaflets, new media and sundry revenues
grew satisfactorily in the year by 5% on a
like-for-like basis. 27 FINANCIAL REVIEW
Johnston Press  Annual Report & Accounts 2002
MARGINS
With revenue growth of 2% in the existing
business and continued emphasis on the
control of costs and increased efficiency,
operating margins improved from 29.8%
to 31.5%. For the enlarged Group, the
consolidated results show a total operating
margin of 30.2% despite the dilutive
impact of the lower margin acquired
businesses and this represents a 0.4%
increase over the already industry leading
margins of 2001. Apart from people-
related costs, the largest single cost
category for the Group is newsprint. The
management of costs in 2002 benefited
from an 11% reduction in newsprint prices
and there will be a further benefit in 2003
with another reduction.
CASH FLOW/NET DEBT
In common with the regional press as an
industry, Johnston Press has strong cash
flows. The Group entered 2002 with net
debt of £237 million and, after paying
£555 million for RIM plus associated fees
of £18 million, of which £220 million was
financed by a Rights Issue, still managed
to close the year with net debt of £503
million - an effective reduction of £87
million in the year. Debt levels at the end of
December were impacted by the
seasonality of the business as December
has the lowest monthly revenues. In
December 2002, the cash flows were
particularly strong with the net inflow being
£16.1 million, partly as a result of interest
payments of £2.6 million being deferred
until January 2003 to coincide with the
receipt of funds from our private
placement (see below). To finance the
increased debt requirement, the Group
entered into a new £643 million five-year
facility with a syndicate of banks. This
required the unamortised arrangement
fees of £1.5 million on the old facility to be
expensed as an exceptional interest cost
in the period.
Subsequent to the year-end, and to further
strengthen the Group’s balance sheet, the
£100 million 364-day portion of this debt,
together with an additional £33 million of
the amortising facility, was replaced by
£133 million of 10-year Senior Notes
which were placed privately.
Interest cover for the period was 4.3 times.
FINANCIAL INVESTMENTS
Being an entirely UK-based Group, 
the main financial risk is that associated
with interest rates. The Group’s policy is 
to arrange borrowings at the lowest
possible cost and with covenants it can
operate comfortably within. It stipulates
that a minimum of 50% should be hedged
against interest rate movements with 
the balance being kept under continuous
review. As at 31 December 2002, 
£453 million of the debt was hedged at 
an effective rate of 5.1% for an average
period of 4 years.
At the end of the year, the Directors
reviewed the carrying value of its
investments. The listed investments were
written down to market value at a cost of
£0.2 million and the unlisted investment in
Mirago plc, the UK internet search engine,
was written down by 10%, £0.4 million,
based on the valuation of the Directors.
PENSION FUND/FRS17
The issues facing defined benefit pension
schemes have been well documented in
the financial press and are faced by
Johnston Press in both its existing scheme
and that acquired with RIM, despite both
of the schemes being closed to new
entrants since 1998. The decline in stock
market values since December 2000,
when both schemes were fully funded
taking account of subsequent one-off
payments, and the lack of investment
returns in subsequent periods has resulted
in both funds having FRS17 deficits at 
31 December 2002. In both schemes,
employer and employee contributions
have been increased during the year to
ensure that the ongoing service accrual is
adequately funded. The FRS17 valuations
are contained in note 25 on pages 76 and
77 and the Group’s view is that the deficits
at 31 December 2002 are essentially the
result of short to medium-term fluctuations
and has not sought to address these
through one-off payments. It is however
recognised that, if the Minimum Funding
Requirement falls below 90% on either
fund, then any deficit below that
percentage will require to be addressed
over a three-year period.
The Group also carries accruals for
unfunded ex-gratia pension arrangements
South 12%
Scotland 6%
Northeast 6%
North 25%
East Midlands 10%
South Midlands 17%
North Midlands 12%
Northwest 12%
2002 ADVERTISING REVENUE BY DIVISION
Display 32% Employment 28%
Property 12%
Other Classified 15%
Motors 13%
2002 ADVERTISING REVENUE BY CATEGORY 28 FINANCIAL REVIEW
Johnston Press  Annual Report & Accounts 2002
for certain former employees. This liability
is subject to an annual actuarial valuation
and this resulted in a reduction in the
accrual of £0.3 million, which is recorded
as an operating exceptional credit.
APPOINTMENT OF AUDITORS
Prior to the demise of Andersen, the
Board had decided that, after 12 years as
the Group’s auditors, it was appropriate to
go to the market and seek new proposals
from the major firms for the provision of
audit services. Because of the timing of
the acquisition of RIM, and the excellent
support provided to us throughout that
process by Andersen, this was finalised
after the reporting of the Interim Results.
The process to select the new auditors
was led by the Audit Committee. Each one
of the “Big Four” was given access to the
Group Finance Director and Company
Secretary to allow the development of a
detailed tailored proposal. As well as
submitting this proposal, each firm then
presented to the Chief Executive, Group
Finance Director and Company Secretary.
Following these presentations, the
Executives selected two firms to present
to the Audit Committee as well as
preparing a report on the rationale behind
the selection. Both of the successful firms
then made a presentation to the Audit
Committee with the Audit Committee
making the final selection of Deloitte &
Touche. The team that Deloitte & Touche
put forward contained no former audit
partners from Andersen.
DIVIDENDS AND EARNINGS PER SHARE
Headline earnings per share at 26.75p
were 13% up on 2001 when allowing for
the bonus element of the Rights Issue.
Subject to approval at the Annual General
Meeting, the total dividend per share for
the year will be 5.4p, an increase of 18.2%
when adjusted for the Rights Issue.
In recognising the importance of Corporate
Social Responsibility, a separate report has
been included on pages 38 to 40.
STUART PATERSON 
Finance Director
19 March 2003 29 MANAGEMENT COMMITTEE
Johnston Press  Annual Report & Accounts 2002
GROUP MANAGEMENT COMMITTEE
Left to right: John Bradshaw (New Media), Gary Fearon (Northeast), David Crow (Printing), Mike Hutchby (East Midlands),
Michael Johnston (South), Margaret Hilton (Northwest), Graham Gould (IT), Chris Green (North), Stuart McPherson (Scotland),
David Edmondson (North Midlands & South Yorkshire), Chris Pennock (South Midlands).
DIVISIONAL MANAGING DIRECTORS
Standing: Malcom Vickers, Director of Human Resources; Tim Bowdler, Chief Executive; 
Henry Faure Walker, Business Development Manager; Danny Cammiade, Director of Operations.
Seated: Stuart Paterson, Finance Director; Richard Cooper, Company Secretary. 30 BOARD OF DIRECTORS
Johnston Press  Annual Report & Accounts 2002
THE BOARD  
Roger Parry and Sir Harry Roche
Fred Johnston and Harry Johnston
Remuneration: Lord Gordon of Strathblane (Chair), Roger Parry and Peter Cawdron
Audit: Sir Harry Roche (Chair), Peter Cawdron and Harry Johnston
Nomination: Roger Parry (Chair), Sir Harry Roche, Fred Johnston and Peter Cawdron
R G Parry, BSc, MLitt
Non-Executive Chairman (49)
Joined the Board in 1997. Chief Executive of
Clear Channel International. Non-Executive
Director of Future Network plc and iTouch plc.
rparry@johnstonpress.co.uk
Sir Harry Roche 
Non-Executive Deputy Chairman (69) 
Joined the Board in 1993. Chairman of 
Press Association Ltd. Chairman of 
The Press Standards Board of Finance.
enquiries@johnstonpress.co.uk
F P M Johnston, CBE, MA,
Non-Executive (67) 
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 (56)
Joined the Board in 1971. 
Former Managing Director Johnston (Falkirk) Ltd.
enquiries@johnstonpress.co.uk
BOARD COMMITTEES   31 BOARD OF DIRECTORS
Johnston Press  Annual Report & Accounts 2002
P E B Cawdron,
Non-Executive (59) 
Joined the Board in 1998. Former Group Strategy
Development Director of Grand Metropolitan PLC.
Non-Executive Director of a number of quoted
companies, including Compass Group plc, ARM
Holdings plc and Capita Group plc.
enquiries@johnstonpress.co.uk
Lord Gordon of Strathblane, CBE, MA 
Non-Executive (66)
Joined the Board in 1996. 
Chairman of Scottish Radio Holdings plc,
previously its Chief Executive. Former Chairman
of the Scottish Tourist Board and a member of
the Scottish Development Agency.
enquiries@johnstonpress.co.uk
Richard Cooper, Tim Bowdler and Stuart Paterson
Peter Cawdron and Lord Gordon of Strathblane
P R Cooper, ACA
Company Secretary (46)
Chartered Accountant. Former Finance Director
of Yorkshire Weekly Newspaper Group Limited.
Appointed Company Secretary in 1996.
rcooper@johnstonpress.co.uk
T J Bowdler, BSc MBA
Chief Executive (55)
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 Press Association Ltd
and The Press Standards Board of Finance.
President of the Newspaper Society.
tbowdler@johnstonpress.co.uk
S R Paterson, MA CA 
Finance Director (45)
Joined the Board in 2001. 
Former Finance Director of Aggreko plc. 
Non-Executive Director of Mirago plc.
spaterson@johnstonpress.co.uk 32 GROUP’S NEWSPAPER TITLES
Johnston Press  Annual Report & Accounts 2002
GROUP’S NEWSPAPER TITLES
SCOTLAND
Johnston Newspapers (Scotland Division) Average
S McPherson Divisional Managing Director circulations
Johnston (Falkirk)
The Falkirk Herald W 31,410
Linlithgowshire Journal & Gazette W 8,493
Cumbernauld News 
& Kilsyth Chronicle W 12,847 
Carluke & Lanark Gazette W 12,074
Falkirk, Linlithgow 
& Grangemouth Advertiser F 56,465
Cumbernauld & Kilsyth Advertiser F 17,857 
The Arbroath Herald 
& Angus County Advertiser W 10,035 
Kirkintilloch & Bishopbriggs Herald W 11,969
Milngavie & Bearsden Herald W 7,264
Motherwell Times & Bellshill Speaker W 15,465
Strathkelvin Advertiser F 21,151
Glasgow East News F 20,114
Strachan & Livingston
Fife Free Press W 20,478
East Fife Mail W 11,587
Glenrothes Gazette W 6,324
Fife Herald & St. Andrews Citizen W 13,405
Fife Leader South F 52,968
Fife Leader North F 26,314
The Tweeddale Press Group
Southern Reporter W 17,791
Berwickshire News & East Lothian Herald W 5,601
Berwick Advertiser W 7,912
Berwick Gazette F 9,909
Hawick News & Scottish Border Chronicle W 5,736
Selkirk Weekend Advertiser W 1,938
East Lothian Times F 24,038
Midlothian Times F 25,225
Peebles Times F 2,194
Midlothian Advertiser W 7,874
East Lothian News W 4,462
ISLE OF MAN
T Williamson Managing Director
Isle of Man Newspapers
Isle of Man Courier F 35,662
Isle of Man Examiner W 15,102
Manx Independent W 13,137
NORTHEAST
Johnston Newspapers (Northeast Division)
G Fearon Divisional Managing Director
Northeast Press
The Mail (Hartlepool) E 21,604
The Gazette (South Shields) E 21,791
Sunderland Echo E 50,593
Hartlepool Star F 30,446
Houghton Star (with Seaham) F 24,718
Morpeth Herald W 2,862
News Post Leader F 72,143
North Shields 
& Whitley Bay News Guardian F 63,802
Northumberland Gazette W 10,999
Peterlee Star F 23,617
South Tyne Star F 35,103
Sunderland Star F 43,141
Washington Star F 19,475
NORTHWEST 
Johnston Newspapers (Northwest Division) Average
M Hilton Divisional Managing Director circulations
Lancashire Evening Post
Lancashire Evening Post E 44,876
Wigan Evening Post E 11,113
Chorley Guardian W 15,375
Garstang Courier W 5,082
Preston & Leyland Reporter F 71,760
Longridge News W 3,188
Lancaster & Morecambe Newspapers
Lancaster Guardian W 18,117
Morecambe Visitor Series W 14,567
Lakeland Echo F 15,000
Lancaster & Morecambe Star Buys F 12,162
Lancashire Publications 
Wigan Observer W 18,089
St Helens, Prescot & Knowsley Reporter F 81,578
Wigan Reporter & Wigan Reporter and Property Scene F 66,781
Leigh Reporter F 62,686
Ashton News F 23,461
Standish Village News F 9,607
Blackpool Gazette & Herald
The Gazette E 36,024
Lytham St Annes Express W 9,463
Blackpool Reporter F 72,889
Fleetwood Weekly News W 5,839
East Lancashire Newspapers
Burnley Express W 32,166
Clitheroe Advertiser W 9,503
Nelson Leader W 15,536
Pendle View F 23,361
The Valley F 9,000
NORTH
Johnston Newspapers (North Division)
C Green Divisional Managing Director
Yorkshire Post Newspapers
Yorkshire Post M 64,648
Yorkshire Evening Post E 84,944
Leeds Weekly News F 143,987
Pudsey Times F 24,648
Wharfe Valley Times F 42,306
Yorkshire Yeller Magazine (W) 8,486
Ackrill Newspapers
Harrogate Advertiser W 17,533
Knaresborough Post W 3,653
Northallerton Times W 845
Pateley Bridge Times W 2,001
Ripon Gazette W 6,385
Wetherby News W 5,915
North Yorkshire News F 33,309
Herald & Champion Shopper Motor Guide F 48,587
The Halifax Courier
Evening Courier E 25,636
E - Evening paid-for newspaper W - Weekly paid-for newspaper
M - Morning paid-for newspaper F - Free newspaper 33 GROUP’S NEWSPAPER TITLES
Johnston Press  Annual Report & Accounts 2002
Brighouse Echo W 6,229
Todmorden News W 4,351
Hebden Bridge Times W 3,376
Calderdale News F 31,707
Yorkshire Weekly Newspaper Group
Wakefield Express W 33,590
Pontefract & Castleford Express W 24,318
Selby Times W 9,224
Morley Advertiser W 3,769
Wakefield Extra Series (inc. Morley Extra) F 57,058
Hemsworth & South Elmsall Express F 17,931
Pontefract & Castleford Extra F 35,608
Ossett & Horbury Observer F 13,173
Selby Chronicle F 13,353
The Reporter
Dewsbury Reporter W 13,839
Batley News W 9,485
Morley Observer W 3,925
Spenborough Guardian W 8,738
The Weekly Advertiser F 41,770
Yorkshire Regional Newspapers
Scarborough Evening News E 15,347
The Malton & Pickering Mercury W 2,924
Filey Mercury W 2,924
Whitby Gazette W 18,281
Bridlington Free Press W 14,958
Driffield Times W 5,153
Beverly Guardian F 16,136
Bridlington Gazette & Herald F 15,842
Driffield Post W 4,380
Pocklington Post W 4,263
Trader & Weekly News F 36,077
NORTH MIDLANDS & SOUTH YORKSHIRE
Johnston Newspapers 
(North Midlands & South Yorkshire Division) Average
D Edmondson Divisional Managing Director circulations
Sheffield Newspapers
Sheffield Star E 71,785
Doncaster Star E 8,312
Sheffield Telegraph W 25,788
Sheffield Weekly Gazette F 119,586
Sheffield Journal F 64,692
Wilfred Edmunds
Derbyshire Times W 43,206
Buxton Advertiser W 14,486
Ripley & Heanor News W 12,398
Ilkeston Advertiser W 9,968
Matlock Mercury W 9,252
Eastwood & Kimberley Advertiser W 4,972
Chesterfield Express F 39,536
Chesterfield Advertiser F 55,147
Alfreton & Ripley Echo F 13,121
Dronfield Advertiser F 10,330
Bolsover Advertiser F 12,005
High Peak Courier F 26,129
Buxton Times F 6,078
Ilkeston Shopper F 16,000
Eastwood Shopper F 13,500
Belper News W 4,171
Peak Times F 16,518
Eckington Leader F 23,218
North Notts Newspapers
Hucknall Dispatch W 8,165
Worksop Guardian W 13,960
Mansfield Chad W 36,485 
Mansfield & Ashfield Observer F 56,731
Alfreton Chad F 17,172
Ashfield Chad F 25,316
Dinnington Guardian F 19,733
Retford Guardian F 19,942
Worksop Trader F 34,717
Retford & Bantry Trader F 23,108
Dinnington & Maltby Trader F 25,791
South Yorkshire Newspapers
Doncaster Free Press W 35,818
Doncaster Courier F 7,000
Doncaster Advertiser F 79,803
South Yorkshire Times W 6,890
Mexborough & District Leader F 33,931
Goole, Thorne & Howden Courier F 21,564
Epworth Bells W 2,912
Gainsborough Standard W 4,453
Gainsborough News F 25,924
EAST MIDLANDS 
Johnston Newspapers (East Midlands Division) Average
M Hutchby Divisional Managing Director circulations
East Midlands Newspapers
Peterborough Evening Telegraph E 25,716
Peterborough Citizen F 58,919
Town Crier West Cambridgeshire Series F 44,692
Fenland Citizen F 38,668
Welland Valley Newspapers
Stamford Mercury W 21,825
Spalding Guardian W 16,877
Lincs Free Press W 20,383
Harborough Mail W 13,337
Melton Times W 14,168
Grantham Journal W 21,064
Stamford Citizen F 16,000
Melton Citizen F 11,800
Grantham Citizen F 15,800
Lincoln Chronicle F 19,760
Boston Standard W 15,504
Louth Leader W 11,191
Sleaford Standard W 5,411
Skegness Standard W 11,828
Market Rasen Mail W 4,858
Horncastle News W 6,320
Lincolnshire Citizen F 49,942
Anglia Newspapers
Lynn News W 52,655
Bury Free Press W 30,717
Suffolk Free Press W 10,080
Diss Express W 9,284
Newmarket Journal W 12,274
Haverhill Echo W 6,029
Norfolk Citizen F 39,569
Bury Citizen F 24,160 34 GROUP’S NEWSPAPER TITLES
Johnston Press  Annual Report & Accounts 2002
GROUP’S NEWSPAPER TITLES
SOUTH MIDLANDS
Johnston Newspapers (South Midlands Division) Average
C Pennock Divisional Managing Director circulations
Northamptonshire Newspapers
Chronicle & Echo E 26,213
Northampton Evening Telegraph E 29,811
Northampton Mercury F 59,063
Northants Citizen F 62,951
Northants on Sunday F 69,200
Premier Newspapers
Milton Keynes Citizen F 97,953
Sunday Citizen F 92,685
Leighton Buzzard Citizen F 15,740
Leighton Buzzard Observer W 8,410
Central Counties Newspapers
Bucks Herald W 23,396
Buckingham & Winslow Advertiser W 11,445
Hemel Gazette W 16,582
Banbury Guardian W 20,694
Rugby Advertiser W 13,449
Daventry Express W 10,388
Leamington Courier Series W 16,678
Bucks Advertiser F 45,517
Bicester Review F 10,027
Hemel Herald Express F 53,461
Banbury Citizen F 31,568
Rugby Review F 43,548
Leamington Review F 40,877
Aylesbury TV Guide F 21,230
Hemel TV Guide F 34,300
Kenilworth Weekly News W 4,514
Bedfordshire Newspapers
Luton Herald & Post F 96,252
Luton News W 11,789
Bedfordshire Times & Citizen F 77,398
Biggleswade Chronicle W 11,580
Dunstable Gazette W 5,074
SOUTH
Johnston Newspapers (South Division) Average
M Johnston Divisional Managing Director circulations
Portsmouth Publishing & Printing
The News (Portsmouth) E 65,745
Bognor Regis Guardian F 40,749
Guardian Homefinder F 28,025
Observer Series 
Chichester, Bognor Regis and 
Midhurst & Petworth Observer W 37,678
Ems Valley Gazette F 5,969
Hayling Islander F 10,821
Portsmouth Journal Series F 139,300
Petersfield & Bordon Post W 8,179
West Sussex Gazette W 12,022
Worthing Advertiser 
(inc. Shoreham and Littlehampton Advertisers) F 77,314
Shoreham Herald W 4,212
Worthing Guardian F 53,498
Littlehampton Gazette W 9,631
Worthing Herald W 18,490
T. R. Beckett
Hastings Observer W 22,994
Bexhill Observer W 9,669
Rye & Battle Observer W 6,650
Eastbourne Herald W 27,301
Eastbourne Gazette
(inc. Hailsham and Seaford Gazettes) W 12,160
Hastings and Bexhill News F 48,045
Eastbourne Advertiser F 48,690
Sussex Newspapers
West Sussex County Times W 24,619
Mid Sussex Times W 14,185
Crawley Observer W 10,165
Horsham Advertiser F 26,912
Mid Sussex Citizen F 26,742
Weekend Herald F 46,468
Sussex Express W 16,095
E - Evening paid-for newspaper W - Weekly paid-for newspaper
M - Morning paid-for newspaper F - Free newspaper 35 CORPORATE GOVERNANCE
Johnston Press  Annual Report & Accounts 2002
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 of Best Practice set out in section 1 of the Combined
Code except for non compliance with Code Provision B.1.7 which states that service contracts for Executive Directors should be one
year or less. However, on 1 January 2003, the Remuneration Committee agreed with Mr T J Bowdler to vary the terms of his service
contract from two years to one year. At the Annual General Meeting the Company will be fully compliant with the Code of Best Practice.
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 by complying with the Code of
Best Practice 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. It also arranges for its Non-Executive Directors to visit the Group’s principal
locations at certain intervals to discuss the operations with local management.
Division of Responsibilities between Chairman and Chief Executive
The Board acknowledges the division of responsibilities for running the Board and managing the Company’s business with Mr R G Parry
as Non-Executive Chairman, Sir Harry Roche as Senior Independent Director and Mr T J Bowdler as the Company’s Chief Executive. 
Sir Harry Roche has decided to retire at the Annual General Meeting in 2004 and Mr P E B Cawdron will succeed him as Senior
Independent Director.
Board Balance
Code Provision A.3.2 requires that the majority of Non-Executive Directors should be independent. Of the Company’s current eight
Directors, two are Executive and the remainder Non-Executive, of whom four are regarded as independent. 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.
However , 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 Company over the past few years has increased the number of independent Non-Executive Directors from one to four while the
number of non-independent Non-Executives has reduced to two. The Company has a Nomination Committee to make recommendations
on the appointment of further independent Non-Executive Directors.
Supply of Information
The Board receives a formal schedule of matters specifically reserved to it for decision, such as future strategy, acquisitions and disposals,
capital expenditure, trading and capital budgets and Group borrowing facilities. The Board considers monthly reports from the Chief
Executive, Finance Director and Director of Operations and Minutes of the Board are circulated to all Board members. It has also made
the Company Secretary responsible to the Board for the timeliness and quality of information.
Re-election
Non-Executive Directors do not have service contracts but have letters of appointment. They are appointed for an initial term of three
years and at the end of that period, their re-appointment for a further period of three years is formally considered by the Board.
Dialogue with Institutional Shareholders
The Directors encourage and seek to build up a mutual understanding of objectives between the Company and its institutional
shareholders. As part of this process, the Chief Executive and Finance Director make twice yearly presentations to institutional investors
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.
CORPORATE GOVERNANCE 36 CORPORATE GOVERNANCE
Johnston Press  Annual Report & Accounts 2002
Annual General Meetings
The Board seeks to encourage shareholders to attend its Annual General Meeting. It uses the Annual General Meeting to communicate
with private investors and encourages their participation.
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 which is included in
this Annual Report. 
Internal Control
The Directors are responsible for the Group’s system of internal control and for regularly reviewing its effectiveness. Such a system cannot
provide absolute assurance that the risk of failure in achieving business objectives will be eliminated, but the system has been designed to
meet the Group’s particular needs and the risks to which it is exposed.
There is a continuous process of identifying, evaluating and managing the significant risks faced by the Group, which has been in place for
the year under review and up to the date of approval of the annual report and accounts. This process is well documented and regularly
reviewed by the Board. The key elements of the process during the period under review have been:
• Formal Board reporting on a monthly basis by the Chief Executive, Finance Director and Director of Operations on the Group’s
performance and on any emerging risks and issues. The monthly management accounts break down the results of the Group’s
operation by each company’s performance and all significant variations against budget and the previous year are fully examined. The
day-to-day responsibility for managing each of the Group’s operations rests with local experienced senior managers and the Group has
a clear organisational structure which includes appropriate delegation of authority. The Executive Directors ensure that regular contact is
made with all senior managers. The Group Management Committee comprising the Executive Directors, the Director of Operations, the
Company Secretary, the Director of Human Resources and the Business Development Manager met every month to review the financial
and operational issues as well as risks facing the Group.
• Formal Board approval for capital expenditure over £250K and for other investment decisions. Approval was granted for all acquisitions
and disposals.
• Formal Board approval of the annual budget for the forthcoming financial year. These are detailed and comprehensive budgets, covering
each operating business.
• Review by the Audit Committee on a six-monthly basis of the work performed by the Internal Financial Control Committee (IFCC) based
on a programme of work agreed in advance. The IFCC is chaired by the Company Secretary who is responsible for the conduct of
control reviews in selected locations by members of the committee who are independent of the location visited. The IFCC is also
responsible for the review of detailed financial control checklists submitted by each operation to head office monthly.
• Review by the Audit Committee of the results of the annual audit and review of the half-year results by the Group’s external auditors.
These reviews included discussion of any control weaknesses or internal issues identified by the auditors.
• The conduct of risk assessment involving senior management of all the Group’s businesses in addition to the Group’s Executive
Directors. The results of these assessments are summarised and results reported to the main Board Directors. These risk assessment
sessions will continue at each operation and will continue to evaluate the risks faced. During 2002 there has been a particular focus on
updating all disaster recovery plans, introducing best practice workflows and reviewing management succession.
In addition, the head office of the Group has the ongoing responsibility to set policies, procedures and standards as detailed in the Group’s
policy guidelines, which have been fully updated following the acquisition of Regional Independent Media Holdings Ltd. These include:
• Finance
• Cash/treasury controls
• Trading
• Customer service, information and technology
• Property management
• Human resources including pension administration, health and safety and environmental issues
• Legal and regulatory compliance
CORPORATE GOVERNANCE Continued XX CORPORATE GOVERNANCE
Johnston Press  Annual Report & Accounts 2002
37
At its meeting on 31 January 2003, 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 current independent review and monitoring procedures in operation.
Health and Safety
The Group regards the promotion of health, safety and welfare measures as an essential part of management and employer
responsibilities. Good health and safety management is fundamental to good business performance.
Full detailed health and safety policies have been adopted within each of the Group’s operations, with named individuals responsible
for the implementation and adherence to that policy. This policy is reviewed and updated for any changes in legislation. All employees
are made aware of the policy and their responsibility to ensure its efficient operation.
Local health and safety committees meet regularly covering all the Group’s operations, with an appointed officer to ensure any issues
discussed are actioned as appropriate. Training is made available to these committees to ensure awareness and understanding.
The Group has appointed external consultants to inspect its operations on a rotational basis to report on the local implementation of its
Health and Safety Policy. This report is forwarded to the Group’s head office as well as the individual company and a local
management response is required to address all issues raised.
This same practice also applies to the efficient management of the Group’s freehold and leasehold properties ensuring all property risks
at each location are identified and minimised.
Directors’ Responsibilities
United Kingdom company law requires the Directors to prepare accounts for each financial year which give a true and fair view of the
state of affairs of the Company and of the Group and of the profit or loss of the Group for that year. In preparing those accounts, the
Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in
the accounts.
After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to
continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in
preparing the accounts.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial
position of the Company and the Group 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.
Audit Committee
The Company has an Audit Committee of three Non-Executive Directors chaired by Sir Harry Roche which also comprises, Mr P E B
Cawdron and Mr H C M Johnston who meet twice a year or as necessary. The Committee has written terms of reference that outline
its authority and duties. During 2002 the Committee held additional meetings to oversee the appointment process and selection of the
new external auditors as explained in the Financial Review on page 28.
The Company Secretary acts as Secretary to the Committee and the Minutes of the Committee are circulated to all Board members.
The Finance Director normally attends the meetings. The Chairman and Chief Executive are also invited to attend if required to do so
by the Committee. The Company’s external auditors and the Chairman of the Internal Financial Control Committee also attend the
meetings at which the Committee considers the Company’s half-year and final results and any other matters which it feels necessary
to discuss. Before the meeting closes, the Committee meets privately with the external auditors.
Nomination Committee
This Committee is chaired by Mr R G Parry and includes Sir Harry Roche, Mr F P M Johnston and Mr P E B Cawdron. Its duty is to
seek suitable candidates as Non-Executive Directors and oversee all Board appointments.  CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
Johnston Press  Annual Report & Accounts 2002
38
Business Ethics
The Board of Johnston Press has made a clear commitment to operating all of the Group's business activities to the highest standards
of business ethics and integrity. These principles are not only contained in the Group's Corporate Social Responsibility Statement but it
is also policy to include these in employment contracts.
The Group has the absolute objective of always acting as a fair and reasonable employer.  We also acknowledge and are keenly aware
of our responsibilities to the many communities we serve, our customers, suppliers, shareholders, and to the environment. Because of
our key role in the community, a separate section has been added to this report detailing some of the related activities in which the
Group's companies are involved.
Board Responsibility
The Board has delegated the day-to-day responsibility for all matters related to Corporate Social Responsibility and social issues to the
Executive Directors. They are assisted by the Company Secretary who is the first point of contact for the majority of these issues.
Whilst recognising that the practice of recruitment, employment and training are the responsibility of all managers within the Group,
responsibility for formulating, updating and ensuring adherence to Group policies has been delegated to the Director of Human
Resources who is responsible to the Chief Executive.
Relationships with customers, suppliers and the community are determined at local level by the managing director of each operating
company and is subject to review by the Director of Operations who is responsible to the Chief Executive.
As part of the main Board's review of Corporate Governance at the January 2003 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 all jobs are advertised on the Group Intranet and internal notice boards so that, 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, religion, 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 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. This includes a management
development programme to identify and coach individuals who may have the potential to lead the future direction of the Group. In this
way, staff will make their best possible contribution to the organisation's success.
Community Involvement
Local newspapers are the heart of their communities, reflecting on issues of concern and playing a positive and leading role in bringing
people together. Throughout our publishing areas, Johnston Press titles are actively and deeply involved with their local communities.
Our newspapers have initiated and supported numerous worthy causes, often helping to raise considerable sums of money. 
Amongst the most important are health-related initiatives which have included many to safeguard or improve local facilities such as the
Fife Free Press campaign to build a Maggie’s Cancer Care Centre in Kirkcaldy. Heartrending stories, especially those involving children
such as Caitlin Stewart from Duns who is suffering from the rare Leigh’s Disease, a degenerative brain disorder, have galvanised our
newspapers to rally local support. This has helped to fund the costs of treatment abroad where this is the only option, or to find bone-
marrow donors for leukaemia suffers like Jacqueline Denholm in Leamington. XX CORPORATE SOCIAL RESPONSIBILITY
Johnston Press  Annual Report & Accounts 2002
39
We support numerous charitable organisations. For example, Isle of Man Newspapers raised £60,000 in the month of October for the
Beat Breast Cancer appeal. Indeed, where charity appeals are concerned, it is Group policy to apply a special discount to related
advertisements thereby helping charities to minimise their costs. The Group also has a centrally managed charitable donations budget
and distributed £130,000 in the year, mainly to support causes in our numerous publishing areas. When coupled with the direct
activities of our newspaper companies, the total amount raised was many times that figure.
We play a leading role in addressing areas of deprivation. The Burnley Express Christmas toy appeal was typical of many such
initiatives around the country to provide needy children with some seasonal cheer. The Shields Gazette Jobs Fair organised in
conjunction with the South Tyneside Council was aimed at helping hundreds of unemployed into a new career. Our newspapers also
run initiatives to improve reading skills, such as the Yorkshire Post’s involvement in the Right to Read programme and the Reading
Passport scheme launched by the Gainsborough Standard. A number of our companies play an active part in local schools through
the Newspapers in Education programme, in some cases such as in Portsmouth with a dedicated in-house resource to sustain the
initiative over the long term. Many of our titles such as the Dewsbury Reporter also run campaigns to champion children who have
excelled or who have overcome adversity.
Many important national initiatives have local roots. A tragic shooting incident which left a young girl blind in one eye led to the
Sunderland Echo campaign for a law to curb the dangerous use of airguns. The Government office for the North East contacted the
Echo before the Home Secretary’s recent proposals were announced. The Yorkshire Post, as a leading campaigning newspaper,
investigated and championed a number of such initiatives during the year. These included the need for clearer labelling on hospital
drugs, support for the thousands of hidden victims of asbestos poisoning and a much praised campaign for a reduction in the burden
of red tape on businesses.
Road safety in its widest sense is a matter of great concern throughout our readership, often following tragic accidents and fatalities.
Demands for road improvements have been widespread and have resulted in positive results such as the West Sussex County Times’
successful campaign for the imposition of speed limits and the installation of crash barriers on the A24. Drink driving campaigns have
also featured strongly, none more so than that in the Luton Herald and Post which played an important part in the introduction of
Duggan’s Law, named after the local MP and which enables police to test for drink or drugs without consent for evidence purposes.
Harsher sentencing of those convicted for dangerous driving was another popular theme such as that pursued by the Wigan Observer
following the tragic death of a mother of two outside a local pub. The Matlock Mercury’s Ride-safe campaign was aimed at the many
motor-cyclists who converge on the town during the summer months and The Malton & Pickering Mercury campaigned vigorously
against a parking scheme which was perceived as damaging to the local community and high street trade.
Many of our newspapers have initiated and led efforts to accentuate and applaud what is good about their local areas and to
encourage positive improvement. In Portsmouth, The News has made a real difference with its “We Can Do It” campaign. A gala
awards night recognised the unsung heroes who have contributed something extra to their local community. It has also provided a
platform for taking action to tackle the scourges of graffiti, litter and fly tipping. In Falkirk, Sheffield and Northampton to name but a
few, similar campaigns have been pursued, all aimed at improving the quality of life and building peoples’ pride in their local
communities. 
Throughout our publishing areas, our newspapers have worked tirelessly in support of their local communities with a myriad of
campaigns. In Lewes, the Sussex Express has been a leading voice fighting for improved flood defences. The Evening Telegraph in
Peterborough has spearheaded the appeal to restore the Cathedral after it was damaged in an arson attack. We have championed
community concerns about vandalism in Lancaster, school bullying in Hemel Hempstead, elderly care in Hastings, child abuse in
Sheffield, waste recycling in Milton Keynes, drugs in Chesterfield, regeneration plans for Blackpool, park safety in Preston, a school
merger in Crawley, greenbelt developments in Haywards Heath, rail services in Ashington and policing in Ilkeston. In many of these
cases, as in so many others, our newspapers have succeeded in winning critical improvements or concessions for their local
communities.
Local newspapers are a powerful force for good. Through our titles across the United Kingdom, Johnston Press has been instrumental
in numerous good works and has played a leading part in helping to improve the quality of life in the huge number of local
communities which we serve. This role is central to the purpose of local newspapers and one to which the Group is totally committed. CORPORATE SOCIAL RESPONSIBILITY Continued
CORPORATE SOCIAL RESPONSIBILITY
Johnston Press  Annual Report & Accounts 2002
40
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 is 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.
Environmental Policy
The Group acknowledges that the protection of the environment is one of our key corporate responsibilities. We aim to comply with all
relevant regulations and see the identification of and then the management and control of environmental risks as being an implicit
requirement for adherence to the Corporate Governance Combined Code.
As reported last year, environment risk consultants conducted a strategic environmental review based on a representative sample of
sites. This resulted in the development of a process to identify the risks, their reporting in an Environmental Impacts Register and an
ongoing process for management and control. The risk consultants also identified that the only significant environmental risks lay within
the printing operations of the Group. By the end of 2002 the processes above and the environmental impacts registers were in place
at every print division operation.
On an ongoing basis the management and control of these risks will be monitored by a programme of audit visits by independent
environmental risk consultants.
During 2003 the Group's consumption of electricity, gas and water is projected to be 147 million kWh, 28 million kWh, and 
91 million m
3
respectively. Although this might appear to represent an increase over prior period numbers this is not the case when
allowing for the acquisition of RIM and the investment in new presses which permits work previously printed by third parties to be
printed in-house.
The new press equipment which was installed in 2002 is more energy efficient than the equipment it replaced and energy monitoring
and control equipment has also been installed. This has enabled the Group to register with the British Printing Industries Federation
and to claim rebates against the Climate Change Levy Tax as well as receiving an element of accelerated capital allowances against
the investments made.
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 and the implementation of these is monitored by management.
Newsprint
Part of the industry's agreement with the Government, through the Newspaper Society is a commitment to increase the target for
recycled newsprint. In 2001, the most recently available figures, recycled paper made up 63.5% (2000 - 60.3%) of the raw material
used in the production of the UK's newspapers. The target is for this percentage to continue to increase.
Waste Packaging
The Group adheres to the requirements of the Producer Responsibility Obligations (Packaging Waste) Regulations 1997. Strict
procedures have been established to ensure compliance and the managing director of every company is responsible for ensuring that
these are followed. Each company is responsible for keeping accurate records of tonnages used of each type of packaging, split
between Group and contract titles. Companies with no printing facility are only required to account for any repackaging done prior to
delivery to the customer.
Systems are in operation, including an independent audit, to ensure that verification takes place on a random basis each year.
Shareholders 
Members of the Board (executive and non-executive) have met a number of shareholders during the past year to discuss Corporate
Social Responsibility matters and to address any questions raised by shareholders. XX DIRECTORS’ REMUNERATION REPORT
Johnston Press  Annual Report & Accounts 2002
41
DIRECTORS’ REMUNERATION REPORT
This report has been prepared in accordance with the Directors’ Remuneration Report Regulations 2002 which introduced new
statutory requirements for the disclosure of directors’ remuneration in respect of periods ending on or after 31 December 2002. The
report also meets the relevant requirements of the Listing Rules of the Financial Services Authority and describes how the Board has
applied the Principles of Good Governance relating to directors’ remuneration. As required by the Regulations, a resolution to approve
the report will be proposed at the Annual General Meeting of the Company at which the financial statements will be approved. The
Company voluntarily adopted the same practice last year.
The Remuneration Committee
The Committee is chaired by Lord Gordon of Strathblane, an independent Non-Executive Director, and also comprises two other
independent Non-Executive Directors, Mr R G Parry and Mr P E B Cawdron. During the year Mr P E B Cawdron replaced Sir Harry
Roche who will step down from the Board next year. It meets at least annually and as necessary. The Committee is charged with
recommending the remuneration of the Board, employment conditions, changes to the Executive Share Option Schemes 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. The Chief
Executive attends 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 to provide advice on structuring directors’ remuneration packages. New
Bridge Street Consultants did not provide any other services to the Company in 2002.
Remuneration Policy
Executive remuneration packages are prudently designed to attract, motivate and retain directors of the high calibre needed to
maintain the Group’s position as a market leader 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 is determined by the Board.
There are five main elements of the remuneration package for Executive Directors and senior management:
• Basic annual salary and benefits;
• Performance related bonuses;
• Share options; 
• Pension arrangements; and
• Proposed Share Matching Plan as detailed in the circular to shareholders dated 19 March 2003.
Both Executive Directors have agreed to a one-year rolling contract. The most recently executed contracts for Mr T J Bowdler and 
Mr S R Paterson are 24 March 1995 and 24 May 2001 respectively. A new service contract is being drawn up for Mr T J Bowdler to reflect
the recent changes outlined in this report. In the event of termination both Executive Directors would be entitled to loss of salary, benefits
and pensionable service for the notice period, subject to mitigation where appropriate. The appointments of Non-Executive Directors of the
Company are terminable at will. It is the Committee’s policy that any future Board appointments would be made on the same terms.
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 Option
Schemes.
Executive Directors are entitled to accept one Non-Executive appointment outside the Company providing the Chairman’s permission is
obtained. Any fees are retained by the director at the discretion of the Remuneration Committee. In addition the Executive Directors are
entitled to accept any positions connected with the newspaper industry or any businesses in which the Company holds an investment.
Basic Salary
An Executive Director’s basic salary is determined by the Committee prior to the beginning of each year and when an individual
changes position or responsibility. In deciding appropriate levels, the Committee considers the Group as a whole and relies on
objective research which gives up-to-date information on a comparator group of companies. Basic salaries were reviewed in June
2002, following the acquisition of Regional Independent Media Holdings Ltd, with increases taking effect from 1 May 2002. The next
review will take place on 1 January 2004. Executive Directors’ contracts of service, which include details of remuneration, will be
available for inspection at the Annual General Meeting.
In addition to basic salary, the Executive Directors receive certain benefits-in-kind, principally a car or a cash buyout and private
medical insurance. DIRECTORS’ REMUNERATION REPORT Continued
DIRECTORS’ REMUNERATION REPORT
Johnston Press  Annual Report & Accounts 2002
42
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 analyst’s
expectations. The Committee believes that this ties any incentive payments to the interests of shareholders. In 2002 a 25% bonus was
payable on achievement of the target with additional sums payable for performance above target with a cap of 50% of the Executive’s
earnings. From 2003 the cap has been increased for Mr T J Bowdler and Mr S R Paterson to 66
2
/ 3% and 60% respectively. The Board
retains the discretion to recognise performances over and above this arrangement where exceptional circumstances apply, but any such
discretion is restricted to a total bonus of 25% of earnings.
The Annual General Meeting will consider a Share Matching Plan, details of which are included in the circular to shareholders dated 
19 March 2003.
Share Options
The Company operates an Executive Share Option Scheme and grants are shown below and in note 27 to the Accounts. Certain former
and current Directors have already participated in the Scheme. The Remuneration Committee reviews each grant of options to subsidiary
company Executives on the recommendation of the Executive Directors. All options are granted for nil consideration. These options are
only capable of being exercised if the growth in the Group’s headline earnings per share exceeds the growth in the retail price index by
between three to five percentage points depending on the level of the grant, over a period of at least three years. Performance is always
tested from a fixed base and may not be retested after the fifth anniversary of the option grant. The Company Secretary is responsible for
ensuring the exercise criterion is met. The performance criterion, which applies to all Executive Directors to whom options have been
granted under the Scheme, was chosen as it requires significant improvement in financial performance before options can be exercised.
In order to exercise a grant above 0.5 times and 1 times salary, the growth in the Group’s earnings per share must exceed the growth
in the retail price index by more than four and five points respectively.
The Company’s policy is to grant options at the discretion of the Committee taking into account individual performance, phasing the
grants over a period of time. The policy is reviewed by the Committee from time to time. Currently, the grant of options to the
Executive Directors and all participants in the Scheme in any year is based on a percentage of salary for achieving a target and an
increasing allocation of share options for performance above target up to a maximum level. The maximum annual grant for Mr T J
Bowdler and Mr S R Paterson under this policy is 1.5 times and 1 times salary respectively.
The exercise price of the options granted under the Executive Share Option Scheme is equal to the market value of the Company’s
shares at the time when the options are granted. The Company also operates a SAYE Share Option Scheme for eligible employees
under which options may be granted at a discount of up to 20% of market value.
Following the acquisition of Regional Independent Media Holdings Ltd in April 2002, which was partly funded by a Rights Issue, all the
outstanding share options at the date of acquisition were revised to reflect the discount element of the Rights Issue. The revision factor
was independently checked by the external auditors and approved by the Inland Revenue.
Pension Arrangements
The Company operates two final salary schemes, which are closed to new members, and two defined contribution schemes. The
assets of the pension schemes are totally separated from the assets of the Company and of the Group, and are invested by
independent fund managers.  A professional independent trustee and member nominated trustees are appointed to each of the
pension schemes. A firm of external actuaries and consultants act as advisors. Pension scheme members receive a report from the
trustees and a statement of their actuarial benefits each year.
Mr T J Bowdler participates in the Johnston Press Pension Scheme for a pension of two-thirds of the earnings cap. He also receives a
contribution to an unapproved scheme which is a total cost to the company of 50% of salary per annum 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 last year approved an award of 169,896 Restricted Shares to Mr Bowdler. He is entitled to acquire a
proportion of these shares every six months for a cost of £1 until 2009. No performance conditions apply to the Restricted Shares as they
were granted to replace reduced pension rights. Mr S R Paterson does not participate in the Johnston Press Pension Scheme and the
Company has agreed instead to make a contribution equivalent of 20% of his basic salary into his private pension scheme. This contribution
increases to 25% from his 50th birthday.
Non-Executive Directors
All Non-Executive Directors have specific terms of engagement and their remuneration is determined by the Board within the limits set
by the Articles of Association and based on independent surveys of fees paid to non-executive directors of similar companies. The
basic annual fee paid to each to Non-Executive Director is £30,000. The Non-Executives receive further fees for additional work
performed for the Company in respect of the chairing of the Remuneration Committee and Audit Committee together with the XX DIRECTORS’ REMUNERATION REPORT
Johnston Press  Annual Report & Accounts 2002
43
responsibilities as Chairman and Deputy Chairman. Non-Executive Directors cannot participate in any of the Company’s Share Option
Schemes and are not eligible to join the Company’s pension schemes.
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 2002
Directors’ Remuneration - Audited section
a) The total amounts for Directors’ remuneration and other benefits were as follows:
2002 2001
£’000 £’000
Emoluments 1,213 1,069
Gains on exercise of share options 247 —
Money purchase contributions 201 53
1,661 1,122
b) Directors’ Emoluments
Performance Total
Salary/fees Taxable benefits Related Bonus Emoluments
2002 2001 2002 2001 2002 2001 2002 2001
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Chairman
R G Parry 84 58 — — — — 84 58
Executive Directors
T J Bowdler 393 330 34 13 196 110 623 453
S R Paterson 233 108 — — 117 29 350 137
M L A Chiappelli — 172 — 12 — 17 — 201
N B Rudd-Jones — 52 — 13 — — — 65
Non-Executive Directors
Lord Gordon of Strathblane 28 24 — — — — 28 24
H C M Johnston 28 24 — — — — 28 24
F P M Johnston 29 39 1 8 — — 30 47
Sir Harry Roche 42 36 — — — — 42 36
P E B Cawdron 28 24 — — — — 28 24
865 867 35 46 313 156 1,213 1,069
Taxable benefits include car, telephone, life insurance and health insurance.
Total Shareholder Return 
Johnston Press
Total Shareholder Return
FTSE 350 
Total Shareholder Return
FTSE Media Sector
Relative TSR
1998 1999 2000 2001 2002 DIRECTORS’ REMUNERATION REPORT Continued
DIRECTORS’ REMUNERATION REPORT
Johnston Press  Annual Report & Accounts 2002
44
c) Pension Benefits
The following Directors had accrued pension benefits under the Group’s defined benefit scheme:
Increase in
Total Increase in Total Transfer value of value of 
Years of accrued accrued Transfer accrued total accrued pension
pensionable pension at pension value of pension at pension at during 
service 31.12.01 during year increase 31.12.02 31.12.01 31.12.02 year
£’000 £’000 £’000 £’000 £’000 £’000 £’000
T J Bowdler 9 42 3 19 45 502 481 (36)
H C M Johnston 12 13 — — 13 195 180 (15)
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 during the year and the opening figures in the table above have been
amended to reflect the changes agreed. These figures now only represent his total final salary benefit promise. With effect from 
6 April 2002 Mr T J Bowdler’s unapproved benefits are being funded by way of a defined contribution arrangement. Further details of
the variation are explained on page 42. In addition to the above, the Group paid £154,000 and £47,000 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.
d) Share Option Schemes
Number of 
Rights options during the year Market Gains on Exercise
At Issue At price 2002 2001
01.01.02 Adjustment Granted Exercised 31.12.02 p £’000 £’000
Executive Share Option Scheme
T J Bowdler 534,003 47,953 117,927 100,000 599,883 405 182 —
S R Paterson 123,745 13,673 46,028 — 183,446
Savings Related Scheme
T J Bowdler 9,583 1,059 3,387 10,642 3,387 347 20 —
S R Paterson 3,176 351 — — 3,527
Restricted Share Scheme
T J Bowdler — — 169,896 12,135 157,761 373 45
The above options are exercisable:
T J Bowdler
55,525 at a price of 249.89p between 28.05.2002 and 28.05.2009
55,525 at a price of 265.65p between 19.05.2003 and 19.05.2010
222,097 at a price of 283.66p between 27.10.2003 and 27.10.2010
148,809 at a price of 268.80p between 05.11.2004 and 05.11.2011
117,927 at a price of 356.50p between 24.04.2005 and 24.04.2012
3,387 at a price of 279.00p between 01.11.2005 and 01.05.2006
The share options within the Restricted Share Scheme are exercisable six monthly between 16 May 2003 and 16 May 2009 at a price
of £1 on each exercise.
S R Paterson
137,418 at a price of 269.25p between 05.06.2004 and 05.06.2011
3,527 at a price of 274.65p between 01.11.2004 and 01.05.2005
46,028 at a price of 356.50p between 24.04.2005 and 24.04.2012
The options granted during the year, other than those in the Restricted Share Scheme are only exercisable subject to the level of
achievement of the performance criteria denoted in the Directors’ Remuneration Report. Options exercisable from 2004 onwards are
subject to the same performance criteria and those pre 2004 require a growth in the Group’s headline earnings per share greater than
the growth in the retail price index plus three percentage points per annum over a period of at least three years.
The middle market price of the Ordinary Shares was as follows:
On 1 January 2002 356.5p Highest price during year 429.5p
On 31 December 2002 368.5p Lowest price during year 322.5p
This report was approved by the Board of Directors on 19 March 2003 and signed on its behalf by: 
Lord Gordon of Strathblane. XX DIRECTORS’ REPORT
Johnston Press  Annual Report & Accounts 2002
45
DIRECTORS’ REPORT
Year to 31 December 2002
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, together with associated web sites.
Review of Business
The results for the year 2002 are set out in the Group Profit and Loss Account on page 50. The Group profit for the year before 
taxation was £92,725,000 (2001 - £68,546,000) which results in a retained profit transferred to Reserves of £50,400,000 
(2001 - £38,573,000). Details of the business activities during the year are set out in the Chief Executive’s Review and in the 
Financial Review.
Dividends
The Directors recommend a final dividend of 3.6p per share making a total dividend of 5.4p per share for the year. Subject to approval
by members the final dividend will be paid on 16 May 2003 to those Ordinary Shareholders on the register at 25 April 2003.
Share Capital
Details of Share Capital are shown in note 21.
Environmental Policy
The Board acknowledges that environmental protection is one of the Company’s business responsibilities. It aims for a continuous
improvement in the Company’s environmental performance and to comply with all relevant regulations. Following an internal audit and
an assessment by external advisors, the Group has now put in place a documented environmental policy to monitor performance and
to take action where appropriate. Further details of this policy are provided in the Corporate Social Responsibility statement.
Donations
Charitable donations amounted to £130,000 (2001 - £97,000). There were no payments for political purposes.
Supplier Payment Policy
The Company’s policy is to settle terms of payment with suppliers when agreeing the terms of each transaction, ensuring that
suppliers are made aware of the terms of payment, and to abide by the terms of payment. Trade creditors of the Company at 31
December 2002 were equivalent to 14 days purchases (2001 - 19 days), based on the average daily amount invoiced by suppliers
during the year.
Directors and their Interests
Under the Company’s Articles of Association, Mr P E B Cawdron and Lord Gordon of Strathblane are due to retire by rotation. The
Board has decided, however, that each director will retire voluntarily every three years, to the extent that he is not required so to do,
with that or greater frequency, under the Articles of Association. Accordingly, Mr F P M Johnston will retire voluntarily at this year’s
Annual General Meeting. All the Directors retiring at this year’s Annual General Meeting, being eligible, offer themselves for re-election. 
Sir Harry Roche, who joined the Board in June 1993, has decided to retire at the Annual General Meeting in 2004. DIRECTORS’ REPORT Continued
Year to 31 December 2002
DIRECTORS’ REPORT
Johnston Press  Annual Report & Accounts 2002
46
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 2002 31 December 2001
R G Parry 107,807 77,005
T J Bowdler 195,393 124,100
S R Paterson 7,000 5,000
F P M Johnston 12,717,696 12,396,790
H C M Johnston 12,200,000 12,200,000
Sir Harry Roche 64,066 45,762
Lord Gordon of Strathblane 47,310 33,793
P E B Cawdron 9,800 7,000
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
157,761 shares by virtue of their status as potential beneficiaries of the Johnston Press Employee Share Trust.
There have been no changes in the Directors’ Shareholdings since 31 December 2002.
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, other than Directors,
are as follows:
No of Ordinary Shares of 10p each
J C M Johnston 6,380,635
The trustees of H C M Johnston’s children’s trusts 11,200,000
M F Johnston 6,900,094
R T Johnston 6,959,491
CGNU plc and Morley Fund Management Limited 10,520,310
FMR Corp 13,139,394
Prudential 9,280,886
Lloyds TSB Group of Companies 9,794,124
Barclays PLC 8,799,327
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. XX DIRECTORS’ REPORT
Johnston Press  Annual Report & Accounts 2002
47
Special Business
Four resolutions are set out under Special Business in the notice of this year’s Annual General Meeting. The purpose of the first, an
Ordinary Resolution, is to approve the implementation of a Share Matching Plan.
The second, an Ordinary Resolution, is to renew the Directors’ authority to allot shares up to a maximum nominal amount of
£9,446,308 representing 33.33% of the existing issued share capital. The Directors have, however, no current intention of exercising
that authority.
The third, 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 final 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. Any ordinary shares purchased under
this authority will be cancelled and the number of ordinary shares in issue will be reduced accordingly.
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.
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.
Auditors
Deloitte & Touche were appointed to fill a casual vacancy during the year following the resignation of Andersen. Deloitte & Touche have
intimated their willingness to seek appointment and a resolution to appoint them as Auditors of the Company will be put to members
at the Annual General Meeting.
By Order of the Board
P R Cooper, ACA
Secretary
53 Manor Place
Edinburgh EH3 7EG
19 March 2003 INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS’ REPORT
Johnston Press  Annual Report & Accounts 2002
48
We have audited the financial statements of Johnston Press Plc for the year ended 31 December 2002 which comprise the profit and
loss account, the balance sheets, the cash flow statement, the statement of total recognised gains and losses, the note of historical
cost profits and losses, the reconciliation of movements in shareholders’ funds, and the related notes 1 to 27. These financial
statements have been prepared under the accounting policies set out therein. We have also audited the information in the part of the
directors’ remuneration report that is described as having been audited.
This report is made solely to the Company’s members, as a body, in accordance with section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in
an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of directors and auditors
As described in the statement of directors’ responsibilities on page 37, the Company’s directors are responsible for the preparation of
the financial statements in accordance with applicable United Kingdom law and accounting standards. They are also responsible for
the preparation of the other information contained in the Annual Report including the Directors’ Remuneration Report. Our
responsibility is to audit the financial statements and the part of the Directors’ Remuneration Report described as having been audited
in accordance with relevant United Kingdom legal and regulatory requirements and auditing standards.
We report to you our opinion as to whether the financial statements give a true and fair view and whether the financial statements and
the part of the Directors’ Remuneration Report described as having been audited have been properly prepared in accordance with the
Companies Act 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the financial statements, if the
Company has not kept proper accounting records, if we have not received all the information and explanations we require for our
audit, or if information specified by law regarding directors’ remuneration and transactions with the Company and other members of
the Group is not disclosed.
We review whether the corporate governance statement reflects the Company’s compliance with the seven provisions of the
Combined Code 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. XX INDEPENDENT AUDITORS’ REPORT
Johnston Press  Annual Report & Accounts 2002
49
Basis of audit opinion
We conducted our audit in accordance with the 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 2002
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
Chartered Accountants and Registered Auditors
Edinburgh
19 March 2003
An audit does not provide assurance on the maintenance and integrity of the website, including controls used to achieve this, and
in particular on whether any changes may have occurred to the financial statements since first published. These matters are the
responsibility of the directors but no control procedures can provide absolute assurance in this area.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements differs from legislation in
other jurisdictions. GROUP PROFIT AND LOSS ACCOUNT
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
50
Year to 31 December 2002 2002 2001
Notes Before
exceptional Exceptional
items items Total Total
£’000 £’000 £’000 £’000
Turnover
Existing operations 306,401 — 306,401 300,615
Acquisitions 120,414 — 120,414 —
Continuing operations 426,815 — 426,815 300,615
Discontinued operations 1,579 — 1,579 —
Total turnover 2 428,394 — 428,394 300,615
Cost of sales 3 (204,129) — (204,129) (152,481)
Gross profit 224,265 — 224,265 148,134
Other operating expenses (net) 3 (93,048) (1,747) (94,795) (58,673)
Operating profit 4 131,217 (1,747) 129,470 89,461
Existing operations 97,120 (751) 96,369 89,461
Acquisitions 33,863 (996) 32,867 —
Continuing operations 130,983 (1,747) 129,236 89,461
Discontinued operations 234 — 234 —
Operating profit 131,217 (1,747) 129,470 89,461
Share of associates’ operating profit 401 — 401 397
131,618 (1,747) 129,871 89,858
Exceptional items - fundamental reorganisation 5 — (4,438) (4,438) (5,014)
Profit on ordinary activities before interest and taxation 131,618 (6,185) 125,433 84,844
Net interest 6 (30,901) (1,807) (32,708) (16,298)
Profit on ordinary activities before taxation 100,717 (7,992) 92,725 68,546
Taxation on profit on ordinary activities 9 (29,259) 2,398 (26,861) (19,958)
Profit for the financial year 71,458 (5,594) 65,864 48,588
Dividends on equity and non-equity shares 10 (15,464) — (15,464) (10,015)
Retained profit for year 22 55,994 (5,594) 50,400 38,573
Earnings per share 11 Restated
Headline 26.75p 23.65p
Headline diluted 26.61p 23.53p
Basic 24.65p 21.68p
Diluted 24.52p 21.57p
A statement of movements on reserves is given in note 22.
The accompanying notes are an integral part of these accounts.
The earnings per share for 2001 have been restated to reflect the discount element of the Rights Issue. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
51
GROUP STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year to 31 December 2002 2002 2001
Notes £’000 £’000
Profit for the financial year 65,864 48,588
Revaluation deficit 14 (57) (33)
Total recognised gains and losses for the financial year 65,807 48,555
Year to 31 December 2002 2002 2001
£’000 £’000
Profit for the financial year 65,864 48,588
Dividends (15,464) (10,015)
Other recognised gains and losses relating to the year (net) (57) (33)
New share capital subscribed, including share premium 223,145 472
Net increase in shareholders’ funds 273,488 39,012
Opening shareholders’ funds 288,009 248,997
Closing shareholders’ funds 561,497 288,009
Year to 31 December 2002 2002 2001
£’000 £’000
Reported profit on ordinary activities before taxation 92,725 68,546
Difference between historical cost depreciation charge and the actual 
depreciation charge for the year calculated on the revalued amount 87 89
Historical cost profit on ordinary activities before taxation 92,812 68,635
Historical cost profit for the year retained after taxation
and dividends 50,487 38,662
The accompanying notes are an integral part of these accounts.
GROUP RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
GROUP NOTE OF HISTORICAL COST PROFITS AND LOSSES GROUP BALANCE SHEET
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
52
As at 31 December 2002 2002 2001
Notes £’000 £’000
Fixed assets 
Intangible 12 927,557 425,494
Tangible 13 154,084 118,541
Investments 14 5,195 5,137
1,086,836 549,172
Current assets
Stocks 15 2,703 2,030
Debtors - due within one year 16 54,645 35,503
- due after more than one year 16 7,062 6,501
Cash at bank and in hand 23g 10,735 9,138
75,145 53,172
Creditors: amounts falling due within one year 17 (121,973) (89,826)
Net current liabilities (46,828) (36,654)
Total assets less current liabilities 1,040,008 512,518
Creditors: amounts falling due after more than one year 18 (472,559) (212,016)
Provisions for liabilities and charges 20 (5,952) (12,493)
Net assets 2 561,497 288,009
Capital and reserves
Called-up share capital
Equity 21 28,339 20,136
Non-equity 21 1,106 1,106
29,445 21,242
Reserves-equity 22 532,052 266,767
Shareholders’ funds 561,497 288,009
The accounts were approved by the Board of Directors on 19 March 2003 and were signed on its behalf by:
T J Bowdler, Chief Executive S R Paterson, Finance Director
The accompanying notes are an integral part of these accounts. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
53
GROUP CASH FLOW STATEMENT
Year to 31 December 2002 2002 2001
Notes £’000 £’000
Net cash inflow from operating activities 23a 151,457 97,622
Returns on investments and servicing of finance 23b (33,466) (15,993)
Taxation 23c (17,713) (19,317)
Capital expenditure and financial investment 23d (14,218) (24,296)
Acquisitions and disposals 23e (567,726) (6,005)
Equity dividends paid (11,654) (9,353)
Cash (outflow)/inflow before financing (493,320) 22,658
Financing 23f 497,582 (28,544)
Increase/(decrease) in cash in the year 23g 4,262 (5,886)
The accompanying notes are an integral part of these accounts. COMPANY BALANCE SHEET
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
54
As at 31 December 2002 2002 2001
Notes £’000 £’000
Fixed Assets
Tangible 13 2,297 2,230
Investments 14 648,638 515,528
650,935 517,758
Current assets
Stocks 15 234 210
Debtors - due within one year 16 130,273 90,688
- due after more than one year 16 440,474 249
Cash at bank and in hand 1,724 3,095
572,705 94,242
Creditors: amounts falling due within one year 17 (121,035) (59,368)
Net current assets 451,670 34,874
Total assets less current liabilities 1,102,605 552,632
Creditors: amounts falling due after more than one year 18 (460,091) (206,732)
Provisions for liabilities and charges 20 (351) (782)
Net assets 642,163 345,118
Capital and reserves
Called-up share capital
Equity 21 28,339 20,136
Non-equity 21 1,106 1,106
29,445 21,242
Reserves-equity 22 612,718 323,876
Shareholders’ funds 642,163 345,118
The accounts were approved by the Board of Directors on 19 March 2003 and were signed on its behalf by:
T J Bowdler, Chief Executive S R Paterson, Finance Director
The accompanying notes are an integral part of these accounts. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
55
NOTES TO THE ACCOUNTS
Year to 31 December 2002
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, £89,004,000 (2001 - £40,528,000) is dealt with in the accounts
of the Parent Company.
Basis of consolidation
The Group accounts consolidate the accounts of Johnston Press plc and all its subsidiaries made up to 31 December each year.
The Group has adopted the acquisition method of accounting. Under this method the results of subsidiary undertakings acquired or
disposed of during the year are included in the Group Profit and Loss Account from the date of acquisition or up to the date of
disposal. In accordance with FRS10, as from 1 January 1998, goodwill is capitalised. Goodwill arising on acquisitions in the year
ended 31 December 1997 and earlier periods was written off to reserves in accordance with the accounting standard then in force. 
As permitted by the current accounting standard the goodwill previously written off to reserves has not been reinstated in the balance
sheet. On disposal or closure of a previously acquired business, the attributable amount of goodwill previously written off to reserves is
included in determining the profit or loss on disposal.
Publishing titles 
Publishing titles separately acquired after 1 January 1989 are stated in the Balance Sheet at cost. All publishing titles owned by
subsidiaries acquired after 1 January 1996 are included in the Balance Sheet at Directors’ valuation. The Company has taken the view
that these titles have no finite life, and in accordance with the provisions of FRS10 and FRS11 annual impairment tests are undertaken
to determine any diminution in value.
Tangible fixed assets
Tangible fixed assets are shown at cost or valuation, net of depreciation and any provision for impairment, as set out in note 13.
Depreciation is provided on all tangible fixed assets at varying rates calculated to write off cost or valuation over their useful lives. 
The principal rates employed are:
Heritable and freehold property (excluding land) 2
1
/2% on written down value
Leasehold land and buildings equal annual instalments over term of lease
Web offset presses 5% straight line basis
Pre-press systems 20% straight line basis
Other plant and machinery 15% on written down value
6
2
/3%, 10% and 20% straight line basis
Motor vehicles 25% straight line basis
25% on written down value
Revaluation of properties
The Group has adopted the transitional provisions of FRS15 in retaining previously revalued book amounts. The valuations carried out in
1996 and 1997 will no longer be updated. Where depreciation charges were increased following a revaluation, an amount equal to the
increase is transferred annually from the revaluation reserve to the profit and loss account as a movement on reserves. On the disposal or
recognition of a provision for impairment of a revalued fixed asset, any related balance remaining in the revaluation reserve is also
transferred to the profit and loss account as a movement on reserves.
Fixed asset investments
Listed investments are shown at current market valuation. Upward revaluations are credited to the revaluation reserve. Downward
revaluations in excess of any previous upward revaluation are taken to the Profit and Loss Account.
Other fixed asset investments are shown at cost less provisions for impairment except for investments in associated undertakings. In
the Group Accounts, investments in associated undertakings are accounted for using the equity method. The Group Accounts include
the Group’s share of the profit and net assets of associates. NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
56
1. Accounting Policies (continued)
Stocks
Stocks are stated at the lower of cost and net realisable value as follows:
Cost incurred in bringing materials to their present location and condition comprises; (a) raw materials and goods for resale at
purchase cost on a first-in first-out basis; and (b) work in progress at cost of direct materials, labour and certain overheads. Net
realisable value comprises; selling price less any further costs expected to be incurred to completion and disposal.
Leasing
Assets held under finance leases and other similar contracts, which confer rights and obligations similar to those attached to owned
assets, are capitalised as tangible fixed assets and are depreciated over the shorter of the lease terms and their useful lives. The
capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss
Account over the period of the leases to produce a constant rate of charge on the balance of capital repayments outstanding.
Rentals under operating leases are charged on a straight line basis over the lease term, even if the payments are not made on such a
basis.
Turnover
Turnover represents net invoiced sales to customers excluding value added tax.
Taxation
Corporation tax payable is provided on taxable profits at the current rate.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where
transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at
the balance sheet date. Timing differences are differences between the Group’s taxable profits and its results as stated in the financial
statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are
recognised in the financial statements.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be
regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences
can be deducted.
Deferred tax is not recognised when fixed assets are revalued unless by the balance sheet date there is a binding agreement to sell
the revalued assets and the gain or loss expected to arise on sale has been recognised in the financial statements. Neither is deferred
tax recognised when fixed assets are sold and it is more likely than not that the taxable gain will be rolled over, being charged to tax
only if and when the replacement assets are sold.
Finance costs
Finance costs of debt are recognised in the Profit and Loss Account over the term of such instruments at a constant rate on the carrying
amount. When a debt facility is re-financed, the finance costs of the old facility are written off to the Profit and Loss Account.
The Group uses derivative financial instruments to reduce exposure to interest rate movements. The Group does not hold or issue
derivative financial instruments for speculative purposes.
For an interest 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. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
57
Development grants
Development grants are credited to the Profit and Loss Account by equal instalments over 10 years.
Pension costs
The Group provides pensions to employees through various schemes.
The expected cost of pensions in respect of the Group’s defined benefit pension schemes is charged to the Profit and Loss Account
so as to spread the cost of pensions over the service lives of employees in the schemes. Variations from the regular cost are spread
over the expected remaining service lives of current employees in the schemes. The pension cost is assessed in accordance with the
advice of qualified actuaries. The Group has elected to adopt the transitional disclosure requirements of FRS17.
The cost of contributions to the Group’s money purchase scheme is charged to the Profit and Loss Account when incurred. 
As required by SSAP 24, provision has been made for unfunded pension commitments, and payments to pensioners in respect of
these commitments are charged to the provision.
Further information regarding the Group pension schemes is provided in notes 20 and 25.
2. Turnover/Net Assets Analysis
Turnover Net Assets
2002 2001 2002 2001
a) By activity £’000 £’000 £’000 £’000
Continuing operations
Newspapers and contract printing
Existing operations 306,401 300,615 320,238 288,009
Acquisitions 120,414 — 241,259 —
Continuing operations 426,815 300,615 561,497 288,009
Discontinued operations 1,579 — — —
428,394 300,615 561,497 288,009
b) By location
All the Turnover and Net Assets relate to the United Kingdom.
Turnover for newspapers relates to 52-week periods ended 31 December 2002 and 31 December 2001.
There is no significant difference between the geographical origin and destination of turnover. NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
58
3. Cost of Sales and Other Operating Costs (net)
Continuing operations Discontinued
Existing Acquisitions Operations Total
£’000 £’000 £’000 £’000
a) Cost of sales
2002 150,201 53,025 903 204,129
2001 152,481 — — 152,481
b) Other operating costs (net)
2002
Distribution costs 23,076 11,315 166 34,557
Administration expenses (inclusive of exceptional items) 36,755 23,207 276 60,238
59,831 34,522 442 94,795
2001
Distribution costs 22,099 — — 22,099
Administration expenses (inclusive of exceptional items) 36,574 — — 36,574
58,673 — — 58,673
c) Operating exceptionals included within administration expenses
2002
Restructuring of the Group’s operations 1,045 — — 1,045
Other reorganisation costs — 996 — 996
Reduction in unfunded pension provision (294) — — (294)
751 996 — 1,747
2001
Closure of web offset press 365 — — 365
Reorganisation following acquisition of new titles 115 — — 115
Restructuring of the Group’s operations 1,121 — — 1,121
Profit on sale of properties (352) — — (352)
1,249 — — 1,249
4. Operating Profit
2002 2001
a) By activity £’000 £’000
Continuing operations
Newspapers and contract printing
Existing operations 96,369 89,461
Acquisitions 32,867 —
Continuing operations 129,236 89,461
Discontinued operations 234 —
Total operating profit 129,470 89,461
b) By location
All the operating profit is derived from the United Kingdom. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
59
2002 2001
£’000 £’000
c) Operating profit is shown after charging or (crediting):
Depreciation of tangible fixed assets (note 13) 16,718 11,600
Loss on disposal of tangible fixed assets 81 79
Redundancy costs 2,847 1,633
Staff costs (note 7) 139,094 97,469
Auditors’ remuneration:
Audit services (Company - £30,000) 260 250
Development grant amortisation (14) (14)
Operating lease charges:
Plant and machinery 1,741 370
Other 2,635 2,260
In addition to the auditors’ remuneration shown above, the auditors received fees of £596,000 (2001 - £485,000) for non-audit
services, of which £398,000 (2001 - £300,000) related to acquisitions and disposals. The other non-audit fees related to the audit of
the Group’s circulation and distribution figures and additional tax services. Included in the £596,000 was an amount of £461,000
paid to the previous auditors of the Company before the appointment of Deloitte & Touche.
5. Exceptional Items Reported after Operating Profit
2002 2001
£’000 £’000
Closure of Southern Web operation — 5,014
Fundamental reorganisation following acquisition of new titles 4,438 —
4,438 5,014
The aggregate effect of the exceptional items on the amount charged to the Profit and Loss Account for taxation was to reduce the
charge by £1,331,000 (2001 - £1,504,000).
6. Net interest
2002 2001
£’000 £’000
Investment income:
Income from fixed asset investments 700 992
Interest receivable 337 216
Total interest receivable and similar income 1,037 1,208
Interest payable and similar charges:
On bank loans and overdrafts 29,031 13,823
On loan stock 1,719 2,999
Amortisation of term debt issue costs 1,188 684
31,938 17,506
Exceptional items
Write off term debt issue costs of previous bank facility 1,456 —
Provision for impairment of investment in Mirago 351 —
Total interest payable and similar charges 33,745 17,506
Net interest 32,708 16,298 NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
60
7. Employees
The average monthly number of employees (including executive directors) was: 2002 2001
No. No.
Newspaper and contract printing:
Editorial and photographic 1,845 1,375
Sales and distribution 3,068 2,241
Production 1,568 1,278
Administration 886 573
7,367 5,467
£’000 £'000
Staff costs (including Directors’ remuneration): 
Wages and salaries 122,252 86,099
Social security costs 10,007 6,969
Other pension costs (note 25) 6,835 4,401
139,094 97,469
8. Directors’ Emoluments
Full details of the Directors’ emoluments, pension benefits and share options are included in the Directors’ Remuneration Report on
pages 41 to 44. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
61
9. Taxation
2002 2001
The taxation charge which is based on the profit for the year is made up as follows: £’000 £’000
Corporation tax 17,399 16,659
Tax on profit of associated undertakings 139 92
Taxation under provision in previous years 27 43
Deferred taxation (note 20) 9,296 3,164
26,861 19,958
The differences between the total current tax shown above and the amount calculated by applying the standard rate of UK corporation
tax to the profit before tax are as follows:
2002 2001
£’000 £’000
Profit on ordinary activities before tax 92,725 68,546
Less: share of associates’ profit before tax 401 397
Group profit on ordinary activities before tax 92,324 68,149
Tax on Group profit on ordinary activities at standard UK corporation tax rate of 30% (2001 - 30%) 27,697 20,445
Effects of:
Expenses not deductible for tax purposes 120 101
Capital allowances in excess of depreciation (550) (1,780)
Investment income (210) (298)
Other timing differences (9,658) (1,809)
Group current tax charge for period 17,399 16,659
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 £1,165,000 (2001 – £1,072,000). At
present, it is not envisaged that any tax will become payable in the foreseeable future.
10. Dividends
2002 2001
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 1.8p (2001 - 1.65p) paid on 2 November 2002 5,110 3,319
Proposed final of 3.6p (2001 - 3.25p) payable on 16 May 2003 10,202 6,544
15,464 10,015 NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
62
11. Earnings per Share
The calculations of earnings per share are based on the following profits and weighted average number of shares:
Headline Basic/Diluted
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Profit for the financial year 65,864 48,588 65,864 48,588
Exceptional items 7,992 6,263 — —
Tax effect of exceptional items (2,398) (1,879) — —
Preference dividends (152) (152) (152) (152)
71,306 52,820 65,712 48,436
2002 2001
No. of shares No. of shares
Restated
Weighted average number of shares
For headline/basic earnings per share 266,532,825 223,372,088
Exercise of share options 1,445,334 1,147,719
For diluted earnings per share 267,978,159 224,519,807
Headline figures are presented to show the effect of excluding exceptional items from earnings per share. The weighted average
number of shares for 2001 have been amended to reflect the discount element of the Rights Issue.
12. Intangible Fixed Assets
Group Company
£'000 £'000
Publishing titles:
Cost and net book value 
At 1 January 2002 425,494 —
Additions (note 14) 506,819 —
Disposals (note 14) (4,756) —
At 31 December 2002 927,557 —
13. Tangible Fixed Assets
Freehold land Leasehold Plant and Motor
Group and buildings buildings machinery vehicles Total
£’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 January 2002 31,895 4,897 119,568 12,761 169,121
Additions 565 31 7,793 2,646 11,035
New subsidiaries (note 14) 18,863 117 25,103 181 44,264
Disposals (765) (416) (1,376) (2,618) (5,175)
At 31 December 2002 50,558 4,629 151,088 12,970 219,245
Depreciation
At 1 January 2002 2,626 730 41,028 6,196 50,580
Disposals — (154) — (1,983) (2,137)
Charge for the year 831 152 13,478 2,257 16,718
At 31 December 2002 3,457 728 54,506 6,470 65,161
Net book value
At 31 December 2002 47,101 3,901 96,582 6,500 154,084
At 31 December 2001 29,269 4,167 78,540 6,565 118,541
Freehold land amounting to £12,131,290 (2001 - £3,597,000) has not been depreciated. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
63
Freehold Leasehold Plant and Motor
Company buildings buildings machinery vehicles Total
£’000 £’000 £’000 £’000 £’000
Cost or valuation
At 1 January 2002 1,960 400 174 149 2,683
Additions — — 180 30 210
Disposals — — — (72) (72)
At 31 December 2002 1,960 400 354 107 2,821
Depreciation
At 1 January 2002 189 38 162 64 453
Disposals — — — (50) (50)
Charge for year 44 9 40 28 121
At 31 December 2002 233 47 202 42 524
Net book value
At 31 December 2002 1,727 353 152 65 2,297
At 31 December 2001 1,771 362 12 85 2,230
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
a) Freehold land and buildings comprise:
At valuation 37,926 19,537 1,960 1,960
At cost 12,632 12,358 — —
50,558 31,895 1,960 1,960
Professional valuations were carried out by members of the Royal Institute of Chartered Surveyors on certain of the Group’s
buildings at 31 December 1997. Valuations were also carried out at 31 December 1996 by professional valuers on those properties
acquired from Emap plc and Newsquest Media Group Ltd. The valuations were prepared on an existing use basis. The freehold
properties acquired from Regional Independent Media Holdings Ltd were valued by the directors following advice from a firm of
Chartered Surveyors as part of the fair value accounting.
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
b) Historical cost figures for freehold buildings are:
Cost 47,313 29,938 1,772 1,772
Depreciation (3,771) (3,027) (358) (322)
43,542 26,911 1,414 1,450
Group Company
£’000 £’000
c) Assets in the course of construction
Plant and machinery
At 1 January 2002 5,690 —
Movement in the year (4,706) —
At 31 December 2002 984 — NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
64
14. Fixed Asset Investments
Associated Listed Unlisted Own
undertakings investments investments shares Total
Group £’000 £’000 £’000 £’000 £’000
Cost
At 1 January 2002 327 329 4,481 — 5,137
Additions — — — 643 643
New subsidiaries — — 132 — 132
Share of profits for the year 262 — — — 262
Disposals — (1) — — (1)
Dividends received (308) — — — (308)
Revaluation deficit — (57) — — (57)
Transfers to participants — — — (45) (45)
At 31 December 2002 281 271 4,613 598 5,763
Provisions for impairment
At 1 January 2002 — — — — —
Written off — 151 351 66 568
At 31 December 2002 — 151 351 66 568
Net book value at 31 December 2002 281 120 4,262 532 5,195
Subsidiary Unlisted Own
undertakings investments shares Total
Company £’000 £’000 £’000 £’000
Cost
At 1 January 2002 512,015 3,513 — 515,528
Additions 132,929 — 643 133,572
Transfers to participants — — (45) (45)
At 31 December 2002 644,944 3,513 598 649,055
Provisions for impairment
At 1 January 2002 — — — —
Written off — 351 66 417
At 31 December 2002 — 351 66 417
Net book value at 31 December 2002 644,944 3,162 532 648,638
The aggregate market value of the listed investments for the Group at 31 December 2002 was £120,000 (2001 - £329,000).
The investment in Own Shares relates to the shares held by Johnston Press plc Employee Share Trust as explained in the Directors’
Remuneration Report. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
65
The Group holds more than 20% of the equity of the following companies:
Country of Proportion
Name of company incorporation held Nature of business
Associated undertakings
*Emcliffe Ltd England 50% Newspaper publishers
*Classified Periodicals Ltd England 50% Newspaper publishers
*Free Admart Ltd England 25% Newspaper publishers
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. NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
66
14. Fixed Asset Investments (continued)
Acquisition of newspaper titles
On 12 April 2002 the Company acquired the entire issued share capital of Regional Independent Media Holdings Limited (RIM) for a
cash consideration of £573,330,000 including net debt repaid on completion of £440,401,000. There was no goodwill acquired with
the acquisition.
The fair value of the net assets acquired is outlined below:
Fair value
Book value Adjustments to Group
£’000 £’000 £’000
Fixed assets
Tangible 55,261 (10,997) a 44,264
Intangible 308,426 198,393  b 506,819
Investments 4,757 (4,625) c 132
Current assets
Stock 992 (152) d 840
Trade debtors 23,307 (378) d 22,929
Other debtors 8,579 (77) d 8,502
Total assets 401,322 182,164 583,486
Creditors
Trade 3,936 106 d 4,042
Other creditors and accruals 6,614 9,623 e 16,237
Other taxes and social security costs 5,336 13 d 5,349
Provisions (1,576) (13,896) f (15,472)
Total liabilities 14,310 (4,154) 10,156
Net assets 387,012 186,318 573,330
The results for the year to 31 December 2001, for the pre-acquisition period from 1 January 2002 to 11 April 2002 and for the post-
acquisition period 12 April 2002 to 31 December 2002 are shown below:
Year to
31 December Pre- Post-
2001 Acquisition Acquisition
£’000 £’000 £’000
Turnover 175,260 50,179 121,993
Cost of sales 85,506 28,454 53,928
89,754 21,725 68,065
Other operating expenses (net) 54,212 9,124 34,964
Operating profit 35,542 12,601 33,101
Exceptional Items 173 (3,936) (4,438)
Interest (43,031) (40,201) 60
(Loss)/profit before taxation (7,316) (31,536) 28,723
Taxation on (loss)/profit on ordinary activities 638 3,505 (8,200)
(Loss)/profit for the financial year (6,678) (28,031) 20,523
Dividends — — 50,000
Retained loss (6,678) (28,031) (29,477) XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
67
The figures for the two pre-acquisition periods include the results of operations not acquired by Johnston Press but these results are
not regarded as material.
There were no recognised gains and losses other than the (loss)/profit for each period.
The provisional fair value accounting adjustments were:-
a Additional depreciation in respect of plant and machinery to align to Group policy net of revaluation of freehold property
b Value of publishing titles
c Write off of investment in Fish4
d Alignment of accounting policies
e Additional accruals, mainly relating to the pension deficit of £8.8 million
f Deferred taxation on fair value adjustments
The Company has sold 5 titles acquired from RIM. These are not material disposals under the provisions of FRS 6 and therefore the
additional information required by FRS 6 is not included.
On 6 September 2002 the Company, through one of its subsidiaries, sold the Galloway Gazette Ltd and Stornoway Gazette Ltd,
comprising three titles. On the same day it sold the Wee County News title to the local management. The total consideration received
was £5,237,000 representing titles £4,391,000, fixed assets £773,000, stock £111,000, debtors £280,000, cash £58,000 and
creditors £376,000.
On 19 December 2002 the Company, through one of its subsidiaries, sold Writers News Ltd for a consideration of £200,000,
representing titles £365,000, fixed assets £19,000, debtors £22,000 and creditors £206,000.
Summary of fair value of publishing titles capitalised on acquisition and subsequently sold
£’000
Acquisition
Regional Independent Media Holdings Ltd 506,819
Disposals
Galloway Gazette, Stornoway Gazette and Wee County News 4,391
Writers News 365
4,756
15. Stocks
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Raw materials 2,483 1,838 14 18
Work in progress 2 1 2 1
Goods for re-sale 218 191 218 191
2,703 2,030 234 210
There is no material difference between the net book value of stocks as shown above and their estimated replacement cost. NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
68
16. Debtors
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Amounts falling due within one year:
Trade debtors 48,839 31,391 31 27
Amounts owed by Group undertakings — — 54,811 28,629
Prepayments 3,396 2,675 105 371
Other debtors 2,410 1,437 326 386
Dividends receivable — — 65,000 55,000
Corporation tax recoverable — — 10,000 6,275
54,645 35,503 130,273 90,688
Amounts falling due after more than one year:
Amounts owed by Group undertakings — — 440,401 —
Pension prepayments 6,965 6,184 73 24
Other debtors 97 317 — 225
7,062 6,501 440,474 249
17. Creditors: amounts falling due within one year
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Bank loans (note 19) 48,671 26,921 48,671 26,921
Loan stock (note 19) 1,415 6,429 973 5,103
Bank overdrafts (secured) 3,212 5,877 6,350 8,567
Trade creditors 8,087 6,726 — —
UK Corporation tax payable 9,615 9,687 — —
Other taxes and social security costs 11,911 5,489 227 153
Amounts owed to Group undertakings — — 47,164 7,443
Dividends proposed 10,202 6,544 10,202 6,544
Obligations under finance leases 16 20 — —
Other creditors 4,280 1,476 248 143
Accruals and deferred income 24,564 20,657 7,200 4,494
121,973 89,826 121,035 59,368
18. Creditors: amounts falling due after more than one year
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Bank loans (note 19) 418,555 151,689 418,555 151,689
Loan stock (note 19) 41,178 54,957 40,736 54,957
Senior Notes and Senior Discount Notes 456 — — —
Other creditors 12,296 5,257 800 86
Obligations under finance leases 74 113 — —
472,559 212,016 460,091 206,732 XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
69
19. Loans
Borrowings gross of term debt issue costs were: Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Guaranteed loan stock 1999/2006 42,133 60,208 42,133 60,208
Guaranteed loan stock 1994/2004 — 208 — 208
Guaranteed loan stock 1999/2004 884 1,326 — —
10.5% Senior notes and 12.88% Senior discount notes 456 — — —
Bank loans (secured) 472,630 179,881 472,630 179,881
516,103 241,623 514,763 240,297
Repayable:
Within one year 51,442 34,034 51,000 32,708
Within one to two years 60,442 37,500 60,000 37,500
Within two to five years 404,219 170,089 403,763 170,089
516,103 241,623 514,763 240,297
Derivatives and other financial instruments
The disclosures are as defined in FRS13 and as permitted by that standard, certain financial assets such as investments in
subsidiaries, short-term debtors and creditors, pensions and provisions have been excluded. Further details of the Group’s treasury
management policy are given on page 27.
At the 31 December 2002 the Group had a multi-option borrowing facility of £643 million that consisted of a £340 million fully drawn 
Term Loan with a maturity date of 12 March 2007, a Revolving Credit Facility of £203 million which also matures on 12 March 2007 and
a £100 million 364 day facility together with a £30 million bilateral overdraft facility. The 364 day facility was repaid in full, together with a
voluntary repayment of £33 million of the Term Loan Facility, on 7 January 2003 and replaced by 10 year Senior Notes. The undrawn
element of the Facilities at 31 December 2002 amounted to £126 million. The Loan Stock 1999/2006 is part of the £340 million Term
Loan Facility. Redemptions of 1999/2006 Loan Stock over £1 million are funded from additional drawdowns from the Term Loan Facility.
The Senior Notes and the Senior Discount Notes outstanding at 31 December 2002 related to the bond holders within Regional
Independent Media Holdings Ltd (RIM) which did not accept the tender offer made by RIM prior to the Company’s acquisition. Interest
is payable on the Senior Notes semi-annually in arrears. Both Notes, expiring in 2008, contain no covenants and the total of £456,000
represents the value of the tender offer, thereby including an element of interest.
Interest rate profile
At 31 December 2002, the Group’s financial assets consisted of sterling cash deposits of £7,754,000 (2001 - £7,474,000) which are
placed on money market at call, 7-day and monthly rates and £225,000 of Loan Notes, with an interest rate of 1% above base rate,
provided by the purchaser of S & E Distributors Ltd. The interest rate profile of the Group's financial liabilities, including the swaps held,
at 31 December 2002 was:
Borrowings Proportion
Total Floating Fixed Floating rate Fixed rate
£'000 £'000 £'000 % %
2002
Bank borrowings 516,103 63,003 453,100 12 88
2001
Bank borrowings 241,623 88,523 153,100 37 63
The weighted average interest rate on the fixed rate borrowings at 31 December 2002 was 5.06% (2001 - 4.98%) which is fixed for an
average period of 4 years (2001 - 2 years).
The floating rate is Libor plus or minus an agreed margin fixed at maturity intervals which can be monthly, quarterly or half yearly. The
margin is based on the following:
a) Loan Stock 1999/2004 0.75% below Libor
b) Loan Stock 1994/2004 1% below Libor
c) Loan Stock 1999/2006 1% above Libor
d) Term Loan and Revolving Credit Facility 1.5% above Libor with adjustments dependent on financial ratios.
The Directors are of the opinion that there is no material difference between the book value and fair value, measured under discounted
cashflow, of these instruments. At 31 December 2002 there were no material unrecognised gains or losses. NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
70
20. Provisions for Liabilities and Charges
Group Company
2002 2001 2002 2001
£’000 £’000 £’000 £’000
Deferred taxation 4,421 10,597 (569) (432)
Unfunded pensions 920 1,214 920 1,214
Post retirement health costs 611 668 — —
Development grants — 14 — —
5,952 12,493 351 782
a) Deferred taxation
The balance on the deferred taxation account represents the postponed liability calculated at 30% (2001 - 30%) arising from:
(i) Accelerated capital allowances.
(ii) Timing differences on pension commitments.
(iii) Other timing differences, including the deferred taxation asset of the RIM losses inherited.
Details of the deferred taxation account are as follows:
(i) (ii) (iii)
Accelerated Other timing
capital allowances Pensions differences Total
£’000 £’000 £’000 £’000
Group
At 1 January 2002 9,096 816 685 10,597
New subsidiaries 1,809 (2,640) (14,641) (15,472)
Transfer from Profit and Loss Account 634 994 7,668 9,296
At 31 December 2002 11,539 (830) (6,288) 4,421
Company
At 1 January 2002 (25) (357) (50) (432)
Transfer from/(to) Profit and Loss Account 8 101 (246) (137)
At 31 December 2002 (17) (256) (296) (569)
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 2002 1,214 1,214
Pensions paid during the year (108) (108)
1,106 1,106
Valuation at 31 December 2002 920 920
Charged to Profit and Loss Account (186) (186)
c) The movement in post retirement health costs relates to payments made in the year. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
71
21. Share Capital
2002 2001
£’000 £’000
Authorised — equity and voting
390,000,000 Ordinary Shares of 10p each (2001 - 268,290,000) 39,000 26,829
Authorised — non-equity and non-voting
756,000 13.75% Cumulative Preference Shares of £1 each (2001 - 756,000) 756 756
415,000 13.75% “A” Preference Shares of £1 each (2001 - 415,000) 415 415
40,171 28,000
Issued — equity
283,389,258 Ordinary Shares of 10p each (2001 - 201,364,778) 28,339 20,136
Issued — non-equity
756,000 13.75% Cumulative Preference Shares of £1 each (2001 - 756,000) 756 756
349,600 13.75% “A” Preference Shares of £1 each (2001 - 349,600) 350 350
29,445 21,242
During the year ended 31 December 2002, Ordinary Shares of 10p each were issued and allotted as follows:
£’000
80,730,857 shares following the Rights Issue of 2 for 5 to partly finance 
the acquisition of Regional Independent Media Holdings Ltd for a consideration of £220,735,707 8,073
580,631 shares under the terms of the executive share option schemes for a consideration of £1,080,205 58
712,992 shares under the terms of the save as you earn scheme for a consideration of £1,328,681 72
Total at 31 December 2001 21,242
Total at 31 December 2002 29,445
Details of options outstanding are shown on page 44 and in note 27.
22. Reserves
Share Revaluation Other Profit and
premium reserve reserves loss account Total
£’000 £’000 £’000 £’000 £’000
Group
At 1 January 2002 104,286 3,134 — 159,347 266,767
Retained profit for year — — — 50,400 50,400
Share premium on issue of new
Ordinary Shares 214,942 — — — 214,942
Revaluation adjustment — (87) — 87 —
Revaluation deficit — (57) — — (57)
At 31 December 2002 319,228 2,990 — 209,834 532,052
Company
At 1 January 2002 104,286 82 19,510 199,998 323,876
Retained profit for year — — — 73,900 73,900
Share premium on issue of new
Ordinary Shares 214,942 — — — 214,942
At 31 December 2002 319,228 82 19,510 273,898 612,718
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 (2001 - £60,956,000). NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
72
23. Notes to Cash Flow Statement 
2002 2001
£’000 £’000
a) Net cash inflow from operating activities
Operating profit 129,470 89,461
Exceptional items (4,976) (621)
Depreciation charges 16,718 11,600
Development grant amortisation (14) (14)
Loss on sale of tangible fixed assets 81 79
Amount written off Employee share option trust 111 —
Decrease in stocks 56 936
Decrease/(increase) in debtors 9,026 (279)
Increase/(decrease) in creditors 1,279 (3,540)
Decrease in unfunded pension provision (294) —
Net cash inflow from operating activities 151,457 97,622
b) Return on investments and servicing of finance
Income from fixed asset investments 850 988
Interest received 423 216
Dividends received from associated undertakings 308 358
Interest paid (28,050) (17,403)
Preference dividends paid (152) (152)
Term debt issue costs (6,845) —
Net cash outflow (33,466) (15,993)
c) Taxation
UK corporation tax paid (17,713) (19,317)
Net cash outflow (17,713) (19,317)
d) Capital expenditure and financial investment
Purchase of tangible fixed assets (15,741) (25,910)
Sale of tangible fixed assets 2,165 1,609
Purchase of investment - Employee share option trust (643) —
Sale of investment 1 5
Net cash outflow (14,218) (24,296)
e) Acquisitions and disposals
Purchase of publishing titles/subsidiary undertakings (573,330) (6,230)
Sale of subsidiary undertaking 5,662 225
Net cash in subsidiaries sold (58) —
Net cash outflow (567,726) (6,005)
Free cash flow is defined as items a) to d) above. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
73
2002 2001
£’000 £’000
f) Financing
Proceeds from issue of ordinary share capital 223,145 472
Loan stock repaid (18,269) (1,499)
Loans repaid (179,881) (27,500)
New loans 472,630 —
Finance leases (43) (17)
Net cash inflow/(outflow) 497,582 (28,544)
The titles acquired in the year contributed £32,364,000 to the Group’s net operating cash flows, received £60,000 in respect of net
returns on investment and servicing of finance, made no payments in respect of taxation and paid £926,000 for capital expenditure.
The titles sold in the year contributed £240,000 to the Group’s net operating cash flows and made no payments in respect of net
returns on investment and servicing of finance or taxation but paid £5,000 for capital expenditure.
g) Analysis and reconciliation of net debt
Other
1 January non-cash 31 December
2002 Cash flow changes 2002
£’000 £’000 £’000 £’000
Cash at bank and in hand 9,138 1,597 — 10,735
Overdrafts (5,877) 2,665 — (3,212)
3,261 4,262 — 7,523
Bank loans (179,881) (292,749) — (472,630)
Loan stock (61,742) 18,269 — (43,473)
Finance leases (133) 43 — (90)
Term debt issue costs 1,627 6,845 (2,644) 5,828
(240,129) (267,592) (2,644) (510,365)
Net debt (236,868) (263,330) (2,644) (502,842)
Of the £10,735,000 cash at bank and in hand, £1,645,000 is held on deposit to guarantee the 1999/2006 Loan Stock interest for one year.
2002 2001
£’000 £’000
Increase/(decrease) in cash in the year 4,262 (5,886)
Issue of debt and movement in lease financing (267,592) 29,016
Change in net debt resulting from cash flows (263,330) 23,130
Amortisation of term debt issue costs (2,644) (684)
Movement in net debt in year (265,974) 22,446
Net debt at beginning of year (236,868) (259,314)
Net debt at end of year (502,842) (236,868) NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
74
24. Guarantees and Other Financial Commitments
a) Lease commitments
The Group has entered into non-cancellable operating leases in respect of plant and machinery, the payments for which extend over a
period of years. The total annual rental for 2002 was £1,741,000 (2001 - £370,000). In addition, the Group leases certain land and
buildings on short-term and long-term operating leases. The annual rental on these leases was £2,635,000 (2001 - £2,260,000). 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
2002 2001 2002 2001
£’000 £’000 £’000 £’000
The minimum annual rentals
under the foregoing leases are as follows:
Plant — expiring
Within one year 500 10 — —
Between two and five years 863 104 — —
After five years 53 15 — —
1,416 129 — —
Land and buildings — expiring
Within one year 551 84 6 6
Between two and five years 503 438 — —
After five years 1,951 1,617 — —
3,005 2,139 6 6
b) Capital commitments
Contracted for but not provided 585 11 — —
c) Bank guarantees
All companies in the Group have granted a debenture, bond and floating charge, unlimited inter-company guarantee and letter of set-
off to the Group’s bankers. On 7 January 2003 the debenture, bond and floating charge was released.
d) Contingent liability
In March 2000 the Inland Revenue notified the Group of a possible capital gains tax liability of £18 million relating to pre-acquisition
transactions in companies acquired by the Group. In the event of proven liability the Group holds a full tax indemnity from the vendor
of the companies concerned and accordingly no provision for any liability is reflected in these accounts. XX ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
75
25. Pension Schemes
The Group previously operated a number of defined benefit pension schemes and in 2001 they were consolidated into the Johnston
Press Pension Scheme (JPPS). As a result of the acquisition of RIM, the Group took on the defined benefit section of the Regional
Independent Media Pension Plan (RIM). 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. 
Johnston Press RIM Pension
Pension Scheme Scheme
(JPPS) (RIM)
Most recent valuation 31 December 2000 31 December 2001
Assumed investment return per annum 5.1%-6.6% 5.5%-7.0%
Annual salary increase at 4% 4%
Market value of scheme assets £152,912,000 £63,500,000
Actuarial value of assets to accrued benefit 99% 88%
Contribution ranges:
Employee 0%-8% 3.0%-6.5%
Employer 12.5% 11.6%-12.5%
The valuation of the Johnston Press Pension Scheme at 31 December 2000 produced a deficit of £2,175,000. The Company agreed
to fund this deficit and the amount was paid during 2002. An increased level of contribution has been implemented to meet the
ongoing fund requirement. The RIM Pension Scheme valuation at 31 December 2001 produced a deficit of £8.8 million. The Group
made a one-off contribution of £1.0 million and increased contributions in October 2002 to address the ongoing funding requirement.
The deficit was recognised as a fair value adjustment.
The pension cost charged in the Profit and Loss Account was as follows:
2002 2001
£’000 £’000
Defined benefit schemes 3,620 2,891
Defined contribution schemes 3,215 1,510
Charged in accounts 6,835 4,401
Actual contributions paid 9,859 7,831
3,024 3,430
Deficit in RIM Pension Scheme provided as a fair value adjustment 8,800 —
(Decrease)/increase in balance sheet excesses (5,776) 3,430
A cumulative deficit of £1,845,000 (2001 - excess of £3,931,000) is included within the balance sheet.  NOTES TO THE ACCOUNTS Continued
ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
76
25. 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 second year of the transitional provisions. They
provide information which will be necessary for full implementation of FRS17 subsequent to the review of the International Accounting
Standard IAS19.
The actuarial valuations described above have been updated at 31 December 2002 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: 2002 2001
Rate of increase in salaries 3.2% 3.5%
Rate of increase in pensions in payment 2.2% 2.5%
Discount rate 5.5% 6.0%
Inflation assumption 2.2% 2.5%
The fair value of the assets in the Schemes, the present value of the liabilities in the Schemes and the expected rate of return at the
balance sheet date were:
Existing Acquired Total
2002 2002 2002 2002 2002 2001 2001
% £m % £m £m % £m
Equities 7.0 70.0 7.0 43.3 113.3 7.5 90.0
Bonds 4.5 47.0 4.5 9.1 56.1 5.0 45.0
Cash 3.5 2.0 3.5 1.6 3.6 3.5 4.0
Total fair value of assets 119.0 54.0 173.0 139.0
Present value of scheme liabilities 169.0 78.9 247.9 152.0
Net pension deficit 50.0 24.9 74.9 13.0
The contribution rate was increased to 19.3% (and will increase annually by 0.6% over the next three years) from 15.0% in April 2002
for the existing schemes and to 19.0% from 17.6% in the acquired schemes in October 2002. This contribution rate in the acquired
companies has been set for the next three years and was in addition to the one-off Company contribution in October 2002 of £1.0
million.
The Schemes are closed Schemes and therefore under the projected unit method the current service cost would be expected to
increase as the members of the scheme approach retirement.
Analysis of the amount that would have been charged to operating profit under FRS17
JPPS RIM
£’000 £’000
Current service cost 2,700 1,432
Past service cost — 217
2,700 1,649 ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
77
Analysis of amount that would have been credited to net finance income under FRS17
JPPS RIM
£’000 £’000
Expected return on pension schemes assets 9,100 4,387
Interest on pension scheme liabilities (9,100) (4,566)
— (179)
Analysis of the actuarial loss that would have been recognised in the statement of total recognised gains and losses
JPPS RIM
£’000 £’000
Actual return less expected return on pension scheme assets (28,300) (12,237)
Experience gains and losses arising on the scheme liabilities (1,500) 736
Changes in assumptions underlying the present value of the scheme liabilities (7,500) 3,758
(37,300) (7,743)
History of experience gains and losses
JPPS RIM
Difference between the expected and actual return on share scheme assets:
Amount (£’000) 28,300 (12,237)
Percentage of scheme assets 23.8% (22.6%)
Experience gains and losses on scheme liabilities:
Amount (£’000) (1,500) 736
Percentage of the present value of scheme liabilities (0.9%) 0.9%
Total actuarial gain recognised in the statement of total recognised gains and losses:
Amount (£’000) (37,300) (7,743)
Percentage of the present value of scheme liabilities (22.1%) (9.8%)
The analysis of reserves that would have arisen if FRS17 had been fully implemented is as follows:
2002 2001
£’000 £’000
Profit and loss reserve excluding pension deficit 209,834 159,347
Amount relating to defined benefit pension scheme deficit
net of related deferred tax (46,267) (9,100)
Profit and loss reserve including deficit 163,567 150,247 ACCOUNTS
Johnston Press  Annual Report & Accounts 2002
78
NOTES TO THE ACCOUNTS Continued
26. Related Party Transactions
The Group undertook transactions, all of which were on an arms length basis, and had balances outstanding at 31 December 2002
with related parties as shown below:
Purchases Creditors Sales Debtors
Related party £’000 £’000 £’000 £’000
Emcliffe Ltd 341 — 129 —
Classified Periodicals Ltd 89 3 78 3
Free Admart Ltd 99 14 — —
Emcliffe Ltd and Classified Periodicals Ltd are associated undertakings of Johnston Press plc, which re-publish in a separate
publication, classified advertisements which appear in the Group’s titles and those of certain other publishers. Free Admart Ltd
publishes a separate title in conjunction with other newspaper publishers. The Group provides certain administrative, distribution and
production services to Emcliffe Ltd and Classified Periodicals Ltd and is charged by all associated undertakings for advertisements
placed.
27. Employee Share Schemes
The number of share options and the option price outstanding at the date of the Rights Issue were amended to reflect the discount
element of the Rights Issue. The calculation was checked by the external auditors and approved by the Inland Revenue.
Executive Share Option Scheme
The number of options over ordinary shares granted to employees under the Executive Share Option Scheme are as follows:
Date of Option Number of
Grant Exercisable between Price Ordinary Shares
15.07.97 15.07.00 and 15.07.07 155.34p 6,437
12.10.98 12.10.01 and 11.10.08 135.53p 70,091
10.05.99 10.05.02 and 09.05.09 254.39p 131,661
28.04.00 28.04.03 and 27.04.10 294.91p 662,716
22.12.00 22.12.03 and 21.12.10 308.42p 3,242
17.04.01 17.04.04 and 16.04.11 303.02p 204,926
05.11.01 05.11.04 and 04.11.11 268.80p 81,841
24.04.02 24.04.05 and 23.04.12 356.50p 272,215
The options granted to Executive Directors and details of share prices in 2002 are shown on page 44.
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 2002 to employees are made up as follows:
Option Grant Date Number of Shares Issue price per Share
15.07.97 422,826 162.09p
02.10.98 374,535 167.49p
29.09.99 322,852 278.25p
29.09.00 374,258 310.67p
27.09.01 408,614 274.65p
27.09.02 2,209,906 279.00p
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 and 30 August 2002 respectively. 
A discount of 20% to the average mid-market price was applied to the 2002 issue. XX GROUP PROFIT AND LOSS ACCOUNT HALF YEAR SUMMARY 
Johnston Press  Annual Report & Accounts 2002
79
GROUP PROFIT AND LOSS ACCOUNT HALF YEAR SUMMARY
Year to 31 December 2001 Year to 31 December 2002
6 months to 6 months to
December June Year December June Year
£’000 £’000 £’000 £’000 £’000 £’000
Turnover
Existing operations 145,814 153,118 298,932 150,992 155,409 306,401
Acquisitions 866 817 1,683 82,009 38,405 120,414
Discontinued — — — 1,579 — 1,579
Total turnover 146,680 153,935 300,615 234,580 193,814 428,394
Operating profit
Existing operations 41,322 48,033 89,355 45,064 51,305 96,369
Acquisitions 87 19 106 23,166 9,701 32,867
Discontinued — — — 234 — 234
Total operating profit 41,409 48,052 89,461 68,464 61,006 129,470
Share of associates’ operating profit 173 224 397 197 204 401
Profit on ordinary activities 
before interest and exceptional items 41,582 48,276 89,858 68,661 61,210 129,871
Exceptional items — (5,014) (5,014) (706) (3,732) (4,438)
Profit on ordinary activities 
before interest and taxation 41,582 43,262 84,844 67,955 57,478 125,433
Net interest (8,231) (8,067) (16,298) (19,502) (13,206) (32,708)
Profit on ordinary activities before taxation 33,351 35,195 68,546 48,453 44,272 92,725
Taxation on profit on ordinary activities (9,759) (10,199) (19,958) (13,855) (13,006) (26,861)
Profit on ordinary activities after taxation 23,592 24,996 48,588 34,598 31,266 65,864
Dividends (6,620) (3,395) (10,015) (10,287) (5,177) (15,464)
Retained profit for year 16,972 21,601 38,573 24,311 26,089 50,400
All half years comprised 26 weeks trading. FIVE YEAR SUMMARY
Johnston Press  Annual Report & Accounts 2002
80
FIVE YEAR SUMMARY
1998 1999 2000 2001 2002
£’000 £’000 £’000 £’000 £’000
Profit and Loss Account
Turnover 201,732 242,564 292,174 300,615 428,394
Operating profit on ordinary activities 51,115 65,914 83,896 89,461 129,470
Share of associates’ operating profit 242 310 380 397 401
Exceptional items 686 (5,230) — (5,014) (4,438)
Profit before interest and taxation 52,043 60,994 84,276 84,844 125,433
Net interest payable (6,155) (11,160) (18,819) (16,298) (32,708)
Profit before taxation 45,888 49,834 65,457 68,546 92,725
Taxation (14,270) (15,272) (19,322) (19,958) (26,861)
Profit after taxation 31,618 34,562 46,135 48,588 65,864
Dividends (7,169) (8,171) (9,202) (10,015) (15,464)
Retained profit for year 24,449 26,391 36,933 38,573 50,400
Statistics
Basic earnings per share 14.14p 15.45p 20.63p 21.69p 24.65p
Headline earnings per share 14.17p 17.29p 20.97p 23.65p 26.75p
Operating profit to turnover 25.3% 27.2% 28.7% 29.8% 30.2%
Balance Sheet
Intangible fixed assets 217,357 403,440 419,483 425,494 927,557
Tangible fixed assets 48,009 91,846 102,495 118,541 154,084
Investments 378 1,821 5,224 5,137 5,195
265,744 497,107 527,202 549,172 1,086,836
Net current liabilities (13,144) (17,671) (26,385) (36,654) (46,828)
Total assets less current liabilities 252,600 479,436 500,817 512,518 1,040,008
Creditors due after one year (64,258) (260,790) (242,429) (212,016) (472,559)
Provisions (3,405) (5,806) (9,391) (12,493) (5,952)
Net Assets 184,937 212,840 248,997 288,009 561,497
Shareholders’ Funds
Ordinary Shares 20,047 20,048 20,111 20,136 28,339
Preference Shares 1,106 1,106 1,106 1,106 1,106
Reserves 163,784 191,686 227,780 266,767 532,052
Capital Employed 184,937 212,840 248,997 288,009 561,497
The 1999 year was a 53 week period. XX NOTICE OF MEETING
Johnston Press  Annual Report & Accounts 2002
81
NOTICE OF MEETING
Notice is hereby given that the seventy-fourth Annual General Meeting of the Company will be held in the Boardroom, The
Caledonian Hilton Hotel, Princes Street, Edinburgh on 25 April 2003 at 11am to transact the following business of the Company:
1. To receive the Accounts for the year ended 31 December 2002 and the reports of the Directors and Auditors thereon.
2. To receive the Remuneration Report for the year ended 31 December 2002.
3. To declare a dividend.
4. To re-elect Mr P E B Cawdron, Lord Gordon of Strathblane and Mr F P M Johnston as Directors of the Company.
5. To appoint Deloitte & Touche, 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 numbers 6 and 7 will be proposed as
Ordinary Resolutions and numbers 8 and 9 will be proposed as Special Resolutions:-
Ordinary Resolutions
6. That:-
(a) the Company’s proposed new Share Matching Plan, the Johnston Press plc 2003 Share Matching Plan (“the Matching Plan”)
the main features of which are summarised in the circular to shareholders dated 19 March 2003 and a copy of the Rules of
which is produced to the Meeting and initialled by the Chairman for the purpose of identification be and the same is hereby
approved.
(b) the Board of Directors be and is hereby authorised to do all such acts and things as they may consider necessary or
expedient to carry the Matching Plan into effect.
(c) the Board of Directors be and is hereby authorised to establish schedules to the Matching Plan and/or other plans based on
the Matching Plan but modified to take account of local tax, exchange control or securities laws outside the UK, provided that
any shares made available under such schedules or other plans must be treated as counting against the relevant limits on
individual or overall participation in the Matching Plan.
7. 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 £9,446,308. This authority shall expire on 27 April 2008 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
8. That, subject to the passing of Resolution 7 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
£1,416,946.
This power shall expire, unless previously revoked or varied, on the date of the Annual General Meeting of the Company held in
2004 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.  NOTICE OF MEETING
Johnston Press  Annual Report & Accounts 2002
82
NOTICE OF MEETING Continued
9. 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.
Notes
A In accordance with the Articles of Association, only holders of Ordinary Shares of the Company are entitled to attend and vote
at the Meeting.
B An Ordinary Shareholder entitled to attend and vote at the Meeting is entitled to appoint a proxy or proxies to attend and, on a
poll, vote instead of him. A proxy need not be a member of the Company.
C A form of proxy is enclosed for Ordinary Shareholders which, to be valid, must be completed in accordance with the
instructions printed thereon and be lodged with the Company’s Registrars not later than 48 hours before the time of the
Meeting.
D The Register of Directors’ interests in the share capital of the Company maintained under section 325 of the Companies Act
1985, will be available for reference at the place of the Meeting from 10.30am until its conclusion.
E Copies of all Directors’ Service Contracts will be available for inspection at the Registered Office of the Company during normal
business hours on any weekday (Saturdays and public holidays excepted) from the date of this Notice until the date of the
Meeting and on that date at the place of the Meeting from 10.30am until its conclusion.
F Copies of the draft rules of the Johnston Press plc 2003 Share Matching Plan will be available at the Company’s Registered
Office and at the office of New Bridge Street Consultants, 20 Little Britain, London EC1A 7DH during normal working hours on
any weekday (except Saturdays and public holidays) up to and including the date of the Annual General Meeting and on that
date at the place of the Meeting from 10.30am until its conclusion. JOHNSTON PRESS PLC FORM OF PROXY 
FOR ANNUAL GENERAL MEETING ON FRIDAY 25 APRIL 2003
I/We
(Block capitals)
of
being (a) member(s) of Johnston Press plc hereby appoint the Chairman of the meeting*
as my/our proxy to vote for me/us and on my/our behalf at the Annual General Meeting of the Company to be held on 25 April 2003
and at every adjournment thereof.
My/our proxy is to vote as indicated in respect of the following resolutions:
For Against
1. The adoption of the accounts and of the Directors’ and 
Auditors’ Reports thereon
2. The adoption of the Remuneration Report
3. The declaration of the dividend
4. The re-election of Directors as follows:
(a) Mr P E B Cawdron
(b) Lord Gordon of Strathblane
(c) Mr F P M Johnston
5. (a) The appointment of Auditors
(b) To authorise the Directors to fix the Auditors’ remuneration
6. Ordinary Resolution
7. Ordinary Resolution
8. Special Resolution
9. Special Resolution
Signature(s) Dated this day of 2003
Please indicate with an ‘X’ in the appropriate box how you wish to vote. Unless otherwise instructed the proxy will vote, or abstain
from voting, at his discretion.
Notes:
1. To be valid, this proxy, together with any power of attorney or the authority under which it is signed or a notarially certified copy
thereof, must reach the Company’s Registrars, Computershare Investor Services PLC, P .O. Box 457, Owen House, 8 Bankhead
Crossway North, Edinburgh EH11 0XG at least 48 hours before the meeting.
2. Appointments by corporations must be under the common seal or under the hand of an officer authorised in writing.
3. In the case of joint holders the signature of any one joint holder is sufficient.
*4. Should a member wish to nominate any other person strike out “the Chairman of the Meeting” and insert the name of the
alternative proxy which need not be a member of the Company.
5. Completion of this proxy will not prevent members from attending and voting at the Meeting if subsequently they find that they
are able to do so.
Please tear along this line Computershare Investor Services PLC
P .O. Box 457
Owen House
8 Bankhead Crossway North
EDINBURGH 
EH11 0XG
BUSINESS REPLY SERVICE
Licence No. EH 59
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