Johnston dives as boss quits amid ads slump
Shares in Yorkshire Post publisher Johnston Press today crashed 21% as chief executive John Fry unexpectedly quit and warned regional press advertising had slumped 11% since the start of the year.
Fry, who only started in the job in January 2009, will leave by March next year to allow a smooth handover.
"I've been thinking about it for a few months," said Fry, who admitted he only "crystallised" his departure with the board yesterday.
"I'd like to spend more time on personal projects and family and introduce some plurality into my business life," he said. Sources close to Johnston said he retained the support of shareholders. Only five days ago, Fry recruited a chief financial officer, Grant Murray, who used to hold the same position at Channel Five.
Underlying profits tumbled almost 30% last year to
£30.5 million, with revenues falling 6% to £398.1 million.
The advertising plunge follows fellow publisher Trinity Mirror's similar announcement last week.
"I'd say at least half of that decline is down to the public sector," said Fry, referring to huge cuts to the Central Office of Information's budget and local government job ads.
Recruitment is "our most difficult category".
The shares plummeted by 2.55p to 9.7p.
