THE struggling newspaper group Johnston Press will this week will be stung by a £100m-plus impairment charge and is expected to scrap its interim dividend as it closes in on selecting a new chief executive.

The company will write off more than 20% of the value of four acquisitions made in 2005 after a review found that future cash flows would be less than expected. Titles bought during a £475m acquisition drive include The Scotsman, Belfast News Letter and Leinster Leader in Ireland.

Meanwhile, Australian Alan Revell has emerged as a strong candidate to replace Tim Bowdler who retires as Johnston’s chief executive later this year.

Revell has been without a job since leaving Associated Northcliffe Digital, where he was responsible for knitting together the Daily Mail group’s online activities.

Johnston chairman Roger Parry has been seeking someone with extensive digital experience as the company has been slow to anticipate the shift of advertising online.

Revell was formerly publisher and editor-in-chief of the Sydney Morning Herald.

“The process is going well and when we get a candidate signed off we will announce it,” said Parry.

Bowdler, who was paid £1.1m last year, will reveal the write-down on Wednesday and confirm that the advertising market continues to weaken. Analysts expect Johnston to take a view on the dividend payout at the year-end.

The company flagged the impairment in May, when it warned it might breach banking covenants. Based on March assumptions, the figure was expected to be £55m, but it has since risen because of weak trading. US news group Gannett, which owns The Herald in Glasgow, warned last week that classified and property advertising was still plunging.

Malaysian tycoon Ananda Krishnan bought a 20% stake in Johnston in May.

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