Regional newspaper publisher Local World reported a 12% rise in adjusted profits last year to £43.6m.

Digital revenues for the publisher of the Hull Daily Mail and Scunthorpe Telegraph grew by 21% to £24.6m, helping to offset an 8% decrease in print advertising to £131.5m.

Factors behind the profit increase included a cut in the company’s staff headcount by 240 to 2,498, lowering the wage bill from £86.8m to £80.1m.

Local World was formed through a merger of more than 100 titles from Daily Mail & General Trust’s Northcliffe Media and Iliffe News & Media.

In 2012, Trinity Mirror paid £14m to acquire a 19.98% stake, while Daily Mail owner DMGT holds 38.73%.

In March, Trinity Mirror began discussions with Local World about increasing its stake in the company, or even a full takeover, which would value Local World at about £200m and create by far the largest regional newspaper group in the UK.