The regional division, which comprises the Manchester operations (including Channel M) and Surrey and Berkshire Media, faced according to the company, “extremely challenging advertising market conditions".

Classified revenue continued to be hit hard by competition and migration to lower cost web operations with recruitment falling 16.3% and motors by over 20%.

Two bright spots in the figures were display advertising revenue which increased by 1.4% on the year and digital revenue which rose by almost 20%.

Carolyn McCall, chief executive of Guardian Media Group, said: "Over the past year we have made significant changes to all our businesses in order to meet the new demands of our markets. The stability of GMG's financial performance is testament to the success of our approach.
 
"The Guardian's journalism remains at the heart of what we do, and we are committed to investing in the future of that journalism."

Referring specifically to the regional media division, McCall said: "We do not expect the pace of change in this sector to diminish and the division will need to review its operational structure on an ongoing basis to stay ahead of developments in its markets."

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