SIR David and Sir Frederick Barclay borrowed £272 million to help to fund the purchase of The Daily Telegraph last year, the newspaper’s holding company accounts reveal.

The cost of the borrowing reduced pre-tax profits at the business to £5.9 million in accounts prepared for the 38 weeks to January 2. During that time the interest bill was £12.2 million.

The figures are disclosed in the maiden accounts of Press Acquisitions, which bought the Telegraph titles for a net £666.7 million in July last year — marginally higher than the £665 million widely quoted at the time.

The borrowings stemmed from a bank loan, thought to have been supplied by HBOS.

The new owners of the newspapers also pumped in £404 million of equity, according to the company’s cashflow statement. No dividends were paid by the titles’ holding company, although a £350,000 management fee was paid to a Jersey holding company.

Press Acquisitions paid no fees to its directors, who include Aidan and Howard Barclay, sons of Sir David.

At the Telegraph titles, operating profits fell 11 per cent to £31.5 million although turnover in the year to January 2 was up by 2.6 per cent to £313.4 million.

After the end of the financial year The Spectator was transferred for £20 million to another company controlled by Sir David and Sir Frederick

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive