Independent News & Media (INM) will bring together some 70 senior staff from across the group at Croke Park on Tuesday to outline a new strategy for the media group.
Called the “One Programme”, the strategy has been devised by consulting firm EY, which was hired to devise a high-level corporate strategy for INM that would “future proof” the company and ensure its long-term existence.
INM's chief executive, Michael Doorly, is expected to lead the presentations to staff on Tuesday.
At the time of the publication of its annual results on March 9th, INM said it intended to make a “significant investment to reshape the business and to deliver the strategic plan”.
It added that the plan would “provide a road map for the future” and would involve “reshaping the business model to address the challenges faced by the industry”.
INM’s newly-appointed chairman, Murdoch MacLennan, said a “robust development strategy” was being put in place that would “open a pathway for us to identify a successful future for our business” while protecting its existing core print and online business.
Drop in revenue
Its full-year 2017 results had shown a 9.4 per cent drop in revenues, a 31.8 per cent cut in its pretax profit, and a reduction of 300 basis points in its operating margin. This was against a backdrop of declines in both newspaper circulations and advertising income.
The unveiling of a new strategy comes just three days after it emerged that INM, which is nearly 30 per cent owned by Denis O'Brien, had been informed by the State's corporate watchdog of its intention to apply to the High Court for the appointment of inspectors to investigate the affairs of the company.
The Office of the Director of Corporate Enforcement (ODCE) will make an application to the court for the appointment of inspectors on April 16th. This move by the ODCE is believed to be related to a “potential” data breach, which it has been investigating since late last year.
The ODCE became aware of the potential breach during its work on a whistleblower complaint by the company's former chief executive Robert Pitt.
INM said on Monday that its board was taking legal advice as to whether the court would have sufficient grounds to make the appointment.
In a statement relating to the ODCE’s move, INM said: “The board and the company’s management remain fully focused on the business and ensuring that the day-to-day operations are conducted as normal. However, the appointment, if made, could result in the company incurring material costs.”
INM’s share price fell by 5.1 per cent in Dublin yesterday following confirmation of the ODCE’s move. Its shares closed at 9.3 cent, with another €6.7 million wiped off its market value.
