Tom Glocer: Trading conditions are difficult

Profits before tax and one-off costs for 2001 fell by 34% on the year to �304m (�440m), undershooting analysts' forecasts of around �330m.

Total sales for 2001 were up by about 8% at �3.9bn, but revenue growth flattened in the final three months of the year.

Reuters, a leading provider of financial news, has been hit hard by last year's downturn in global financial markets. The company is also bearing heavy investment costs as it switches to internet-based publication systems.

No quick recovery

"The current trading environment is difficult," said Reuters chief executive Tom Glocer, adding that the company is now developing "more focused" plans for boosting sales.

However, Reuters does not expect an immediate recovery in demand, forecasting a further 2-3% decline in subscription revenues during the first half of 2002.

In the City, Reuters shares were marked down 28p at 564p in early trade on Tuesday.

Reuters shares have fallen by about 40% in the past year, reflecting investor concerns over the impact on the firm of recession-induced cost cuts at its major clients.

More jobs to go

The effect of the financial market downturn on the company has been lagged because many of its subscribers are locked into long-term contracts.

Last year, Reuters cut about 1,600 jobs and axed its financial TV operation in a bid to cut costs by �220m a year by 2003.

A further 200 jobs are to go this year as part of an effort to trim another �15m in costs, the company said on Tuesday.

Reuters added that it lost assets worth around �10m and a further �17m in revenues in the 11 September attacks.