By Justin George Varghese
(Reuters) - The chief executive of Johnston Press Plc (L:JPR) Ashley Highfield has resigned after nearly seven years at the helm and CFO David King will replace him, the publisher of The Scotsman and The Yorkshire Post newspapers said on Tuesday.
Highfield's departure comes weeks after the company signalled the need for more cost cuts through restructuring, property disposals and capex reductions, as it faces continued pressure on revenue.
Britain's newspaper industry has struggled in the past few years as advertisers shifted to online platforms, forcing several print publishers including Trinity Mirror (L:TNI) and Daily Mail and General Trust (L:DMGOa) to cut costs.
Johnston Press has also been reviewing its finances and said earlier this month that it was in talks with bondholders to refinance 220 million pounds in bonds due on June 1, 2019. Without a deal, Johnston Press said it would have to explore alternative refinancing and restructuring options.
Highfield, who previously worked at BBC, resigned citing family reasons and Johnson Press said he agreed not to put himself up for re-election at the company's AGM.
King, also a former BBC executive who joined the group in 2013 as CFO, takes the reins as the company looks to expand its online audience to combat pressure on local print advertising and newspaper sales.
"David has worked closely with the Board on our strategic review of financing options... his transition to the CEO role provides stability to the business at this important time," Chairman Camilla Rhodes said.
Johnston Press shares were more than 9 percent higher by 1036 GMT.
Liberum analysts said King would be regarded as a safe pair of hands who understands the company.
During Highfield's tenure, Johnston Press shares lost about a third of their value, while the company's revenue fell about 46 percent, according to the company's financial statements and Thomson Reuters data.
"I have been privileged to lead Johnston Press during a period of unprecedented turbulence in our industry," Highfield said. The acquisition of the i newspaper has been a particular highlight, he said.
The 250-year-old company, which has more than 200 titles, acquired "i", the cut-price sister paper of The Independent, for 24 million pounds in 2016 to tap into its growing circulation revenue and advertising base.
Activist investor Custos Group, which has around a 20 percent holding in Johnston Press, has been trying to oust Rhodes and Michael Butterworth as directors. It said in November it would push for the appointment of Scotland's former nationalist first minister, Alex Salmond, as the publisher's chairman.
Custos Group was not immediately available to comment on Tuesday.
Johnston Press said Highfield had previously decided to defer his 249,000 pound bonus, granted to him for achieving 2017 targets.
A company spokesman said Highfield would not receive any payments from June 5 when he stands down and also said he would receive the deferred bonus payment only after the company's restructuring.
King will formerly takes over as CEO at the AGM on June 5 and his replacement will be appointed in due course, Johnston Press said.