City analysts have cut their forecasts for Johnston Press after a profit warning from the publisher of regional newspapers including the Scotsman and Yorkshire Post.

Analysts at Numis said:

We expect to reduce our 2015 adjusted operating profit from £55.9m to a touch under £51m, with earnings per share expected to fall from 27p to 23p. Target and recommendation under review ahead of confirming 2015 and 2016 forecasts.

Peel Hunt cut its EBITDA forecasts f0r 2015 to 2017 by around 6%-8%, while Panmure Gordon has reduced its earnings per share estimates and target price by 12%.

The company said full year profits would be slightly below market expectations, blaming a “challenging” trading environment during the first half. It said there was a general slowdown in business, and a particular slowdown around the time of the election when a number of national and regional advertisers reduced or delayed their spending for both print and online.

So total revenue was expected to fall 5% year on year in the first half, with advertising down 5% and circulation 5.5% lower.

It said it was coming into the second half from a lower base than planned, and warned that while revenue trends were expected to improve, they could still be hit by market volatility for the rest of the year.

It said it would make further cost savings to fund investment elsewhere in future growth.

The company’s shares have fallen 23p to 119p, its lowest level since October 2012.