Trinity Mirror (TNI) rises 5.7% to 185.5p after revealing that full-year results will beat expectations, thanks to a good end to 2013. Digital revenue in its publishing arm jumped by 32% in November and December. That's means adjusted operating profit will smash consensus figures by 4% and earnings per share will be 5% higher than forecasts.
Strong cash flows have meant that Trinity was able to make an early payment of £9 million due in 2014 to bring down its pension deficit.
There's still some negative adjustments to make at the forthcoming accounts, nonetheless. When Trinity reports in March, it will take a £225 million non-cash impairment charge after reviewing the value of its goodwill and intangible assets.
That in turn will lead to a separate £700 million non-cash impairment charge covering investments in subsidiary companies.
We've looked at Trinity's prospects several times in Shares over the past year; indeed it is a running Play of the Week. One of the key attractions to investors is the hope that it can reinstate dividends. That's certainly flagged in today's trading update where Trinity signals its intention to get the necessary approvals to eliminate the deficit on its profit and loss account. It needs to cancel part of the share premium account which has a £1.1 billion balance. This will eliminate the negative reserves and pave the way to start paying dividends once again.