Guardian News & Media, which owns The Guardian and the Observer of the UK, has said that it has recorded an underlying loss of £30.9 million.

The figure of £30.9 million is lower than £44.2 million recorded in the previous year. Its parent company, Guardian Media Group recorded an operating loss of £54.8 million compared to £73.3 million in the previous year. However, the group was able to record a pre-tax profit of £22.7 million mainly due to £29.5m windfall from the sale by Top Right Group of the automotive industry information provider CAP and improved digital revenue.

The revenues of the company remained flat at £206.8 million. The company's newspapers are struggling due to the increased consumption of digital media and are aiming to cut costs by £25 million by 2016 for making up for the declining print advertising and circulation. Guardian News & Media cut 60 editorial jobs during the year from a total of 650.

The company pointed out that the revenues from The Guardian website and related online services more than compensated for the fall in revenues from the printing business. Total print revenues including circulation and advertising fell 7 per cent to £140.4 million.

"GMG has made good strategic, operational and financial progress over the last 12 months, giving us increased confidence that we are heading positively and confidently in the right direction," said Guardian Media Group chairman Dame Amelia Fawcett.