Saturday, 24 April 2010

Big losses at the Graun

The announcement by Guardian Media Group that Andrew Miller will become interim chief exec when Easyjet bound Carolyn McCall enters the departure lounge in July got plenty of coverage in rival titles.
Less well covered was the full contents of an email sent to staff explaining the news - in which (buried at the bottom) was the startling news that GMG is going to lose even more money than even it expected.
Amelia Fawcett, chairman of GMG, wrote: "There is, of course, work still to do, and a degree of uncertainty about the future. Unlike many media organisations, though, the ownership structure we have through the Scott Trust allows us to respond to this uncertainty by taking a long-term view.
"In particular, we have constructed the portfolio in a way that deliberately exchanges short-term profit for longer-term capital gain and financial security. This focus on the long term means that the benefits of the work we’ve done will not be reflected in our headline annual results for the year ended in March, which will be published in the next few months. It is
inevitable that the accounting around our restructuring in the last year will create a large paper loss – despite the group now being in a stronger position than before."
Just how much trouble is GMG in?

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