Mirror publisher Reach flags £5m pension funding shortfall
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Newspaper and media group Reach has flagged around £5million in extra costs after the publisher discovered a 'historical error' related to the funding of a legacy pension scheme. The Daily Mirror and Daily Star publisher told investors on Monday it had discovered the error when doing due diligence to prepare for a buy-out of its West Ferry Printers Pension Scheme, which it inherited after acquiring Express Newspapers in 2018.
Reach, which expects to pay the additional funding requirement in 2025, said it had not 'identified any material items' when reviewing its other schemes for the same error. But Reach shares soared 24.2 per cent to 89.4p in early trading, as the group lifted full-year profit guidance.
The firm, which also owns regional newspapers, including the Manchester Evening News, said in a short statement that trading had been 'strong' in the fourth quarter of 2024 and it now expects to 'deliver results ahead of current market expectations'. Market consensus currently points to adjusted operating profit for the full year of £97.8million, according to Reach.
Reach publishes the Mirror, the Express and a number of regional titles. It would mark a strong improvement on the £46.1million operating profit made in 2023, when Reach was hit by restructuring costs and weaker advertising revenues. Reach shares remain almost 80 per cent below their Covid-era peak of 417.5p in August 2021.
