Telegraph Media Group reported a pre-tax loss of £15.7m last year, after taking a £32.9m charge from terminating printing joint ventures including its West Ferry print plant co-owned with Richard Desmond's Northern & Shell.
TMG, publisher of the Daily Telegraph and Sunday Telegraph, fell into a pre-tax loss in the year to 28 December 2008, after a £9.9m profit in 2007.
Operating profit before exceptional items, including the cost of terminating the printing joint ventures, was £32m, a 6.7% year-on-year fall from the £34.3m reported in 2007.
Costs attributable to exceptional items totalled £47.1m last year, up from £24.2m in 2007.
The bulk of this, some £32.9m, related to restructuring costs relating to the termination of TMG's printing joint ventures – such as staff redundancies, lease obligations and pension costs.
In September, TMG terminated its deal with Trafford Park Printers, which it co-owned with Guardian Media Group, the publisher of the Guardian and MediaGuardian.co.uk.
In April 2007 TMG announced that it intended to terminate its deal with Desmond in favour of publishing its titles on News International's presses.
TMG's termination of its printing venture with Richard Desmond's Northern & Shell, at West Ferry, included a two-year notice period, which will not expire until this year and final termination costs will be included in this year's accounts.
It also incurred an £11.8m charge for reorganisation costs including staff redundancies.
According to the report TMG's staff head count increased from 996 in 2007 to 1,036 in 2008. Editorial and production staff increased from 547 to 594. Costs, including salaries, social security and pensions rose from £73m to £76.7m year on year.
Revenue was down 3.2% from £354.9m in 2007 to £343.4m last year.
"In common with all other consumer facing media businesses, our advertising revenues experienced significant declines as the year progressed," the company said. "Circulation revenues proved more resilient as we benefited from an extremely strong and loyal subscriber base."
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