Johnston Press, the publisher of the Scotsman, the Yorkshire Post and a host of more localised newspapers, is planning to implement cost savings to cope with increased newsprint prices.

Prices are "significantly higher" than last year and the company is eyeing savings of £5m this year, it says.

It made the announcement as it revealed that advertising revenues in the 18 weeks to May were down by 10.6% from the same period a year ago, though the downward trend moderated to a decline of 7.8% in the last five weeks of that period.

Johnston said public sector cutbacks were an important factor behind a 30.7% fall in employment advertising.

"In 2010, public sector spending was most buoyant in Q1 and declined considerably between then and the end of Q3," Johnston said.

"Therefore the impact from decreases in public sector activity is expected to reduce throughout the year."

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RG

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