David Montgomery to quit Mecom at end of month

European newspaper publisher Mecom today confirmed that founder and chief executive David Montgomery will bow out at the end of the month despite an improvement in trading.

The former News of the World editor's replacement has not yet been lined up, after shareholders had pushed for the departure of the veteran executive.

Mecom also declined to comment on a bid approach from Trinity Mirror back in November. An initial approach was rebuffed and there has been no second attempt from the Daily Mirror owner.

The group said full-year earnings should rise from 121 million (£76.8 million) to around 155 million because of improved trading in Norway and Denmark. It expects advertising revenues this year to be mixed and is budgeting for an increase in newsprint prices.

Mecom also intends to propose an inaugural dividend for this year, subject to a court-approved capital reduction or other necessary reorganisation, thanks to improving cash generation as capital expenditure and exceptional charges fall.