Independent Newspaper's associate in Australia, APN News & Media, has shown strong growth in the first half of the year and "is committed" to profit growth for the full-year. This is despite what Independent and APN chairman, Mr Liam Healy describes as "very challenging trading conditions in Australia, New Zealand and Asia".

After-tax profits for the half-year were unchanged at Aus$14.5 million, but this disguises real profit growth of 15 per cent, as the comparable period in 1997 included an exceptional gain of Aus$1.8 million.

Sales rose to Aus$182.1 million from Aus$158.3 million, with pre-tax profits up to just over Aus$24 million from Aus$21.2 million. While the results are encouraging in local currency terms, the weakness in the Australian dollar - down to Aus$2.23 against the pound in June this year from Aus$2.03 a year previously - means that Independent's share of APN's after-tax profits of Aus$14.5 million has fallen to £2.4 million from £2.8 million. Since the end of June, the Australian dollar has fallen further against the pound and is currently trading at Aus$2.40. If that trend is maintained, the impact for Independent in the full-year will be more pronounced.

Already analysts have lowered their full-year forecasts for Independent to reflect the sharp fall in the value of the Australian, New Zealand and South African currencies and the deterioration in the New Zealand economy.

Independent reports half-year results tomorrow although the weaker currency translation rates will not kick in until the second half.

APN's business spans regional newspapers, radio stations, outdoor advertising and specialist publications in Australia, New Zealand and south-east Asia. Operating profits at the regional newspapers in Australia were up 7 per cent while the ARN radio network boosted its operating profits by 11 per cent. Operating profits at the Buspak outdoor advertising offshoot were up 13 per cent.