Circulation revenue across all of Independent News & Media's divisions is increasing, but advertising has yet to regain last year's buoyant first-half levels, shareholders at the company's annual general meeting were told yesterday.

However, advertising is showing less volatility and more consistency, shareholders heard, while circulation revenue across the group amounts to 32 per cent of total revenue, compared with an industry average of 21 per cent.

"The performance relative to the second quarter last year is much improved," said Mr Gavin O'Reilly, chief operating officer, after the meeting.

"It is beginning to look like we have a fairly positive trend going forward but it depends what happens in the second half.

"We're not looking for a big hockey-stick recovery in the second half and certainly, if we continue on the trend that we are on, we are very comfortable that we will show an improvement in the year."

Earlier, in response to a shareholder's query on the company's accounting policies, executive chairman Sir Anthony O'Reilly said the company's accounts were a "model of clarity".

"The accounts give a true and fair picture to what went on in the company in the past year," he said.

Sir Anthony said the company's decision to take an exceptional charge against certain new media investments would improve the quality of the company's balance sheet and earnings.

He said operating costs remained well under control and were down on last year in most divisions.

"There was an increase in Irish costs due to the national wage agreement," he added.

Independent also announced the appointment of Mr James Parkinson as chairman of APN News & Media Ltd, its 44.55 per cent-owned Australasian subsidiary, and the appointment of Mr Donal Buggy as chief financial officer.

Mr Parkinson will have special responsibility for, and oversee, Independent's 845 million Australian dollar (€515 million) investment in APN, in particular its finance and corporate development, the company said.

He will remain as an executive director at Independent.

Mr Buggy succeeds Mr Parkinson in the senior finance role, which he held since 1985. Mr Buggy is a chartered accountant who has been group financial controller since he joined the group in 1996 from PricewaterhouseCoopers.

Commenting on the management changes, Sir Anthony said: "There is a great deal under way in Australia in respect to media legislation, particularly the media ownership rules.

"The new management changes will be of particular significance in this regard."