THE chief executive of Johnston Press, which publishes The Scotsman and Yorkshire Post newspapers, said the company remains profitable in spite of the recent fall in advertising revenues.

Ashley Highfield also claimed the recent refinancing of the company had been a significant achievement in directors' efforts to put the company on a stable footing for the future.

Addressing investors at the company's general meeting, Mr Highfield said while advertising income has been under pressure in the downturn, Johnston Press has been able to maintain or increase revenues earned from other areas.

Mr Highfield said circulation, digital, contract printing revenues were stable or increased last year.

"We should not forget the underlying business is still profitable and, apart from the advertising, pretty robust, with robust margins," he told the meeting.

Mr Highfield said the refinancing agreed in April was very successful and an important part of the progress the company had achieved in recent months.

Johnston Press was given a new £393 million three-year loan facility. The company will pay a charge equal to 13% of the sum borrowed including fees.

However, the company will be able to reduce the cost to 10% if it is able to replace the facility with funds from another source in 2014. Mr Highfield said Johnston Press has a clear plan to pay down debt so it will be able to arrange new funding at a lower cost.

A former BBC and Microsoft executive, Mr Highfield highlighted the company's plans to grow digital revenues, partly through developing new applications like apps for mobile devices.

However, he said print products will remain key.

Johnston Press recorded underlying earnings of £28m in 2011, after paying £38.5m interest.