Local World reported a 12% rise in adjusted profits last year to £43.6m, netting shareholders the Daily Mail and Trinity Mirror more than £25m to share.

David Montgomery’s local newspaper publisher, a merger of more than 100 titles from Daily Mail & General Trust’s Northcliffe Media and Iliffe News & Media – including the Nottingham Post and Cambridge News – improved digital revenues by 21% to £24.6m.

The overall profit increase was achieved despite an 8% decline in the group’s biggest revenue generator, print advertising, which fell to £131.5m.

The profit increase, which came despite circulation revenues also declining (£58m), has been achieved through a drive to boost digital income and cost-cutting to improve margin.

The company cut its headcount by 240 to 2,498 last year, lowering the wage bill from £86.8m to £80.1m.

Total revenues fell 4% to £221m as operating profit margin rose from 8% to 10.2%.

DGMT’s 38.73% stake in the business means it nets £16.88m, while Trinity Mirror’s 19.98% equals £8.71m of the profits.

On a pre-tax profits basis, Local World made £15.8m, up from £12.7m in 2013.

Last year, Local World paid out £2.59m in severance payments, down from 2013’s £3.67m.

The un-named highest paid director received £639,000 in remuneration and compensation for loss of office.