The cost to News International of the phone-hacking scandal has soared to £240m as write-downs, legal claims and redundancy payments have punched a hole in the accounts of Rupert Murdoch's newspaper empire.
The closure of The News of the World led to an immediate £160 million write-down for News Group Newspapers, the company that also owns The Sun.
Settling claims for hacking the phones of celebrities such as Sienna Miller resulted in the company being forced to put aside a further £23.7 million.
The provision relates only to those claims where formal proceedings have been issued. The company admitted in its accounts: "The final cost [of claims] may or may not be significantly higher than the amounts recognised."
No provision has been made against potential costs relating to criminal investigations.
Although the £23.7 million provision for civil claims was made against the accounts for the year to July 2011, the majority of the claims are understood to have come in after the year-end. Just £5,00,000 in settlements was paid out during the 12-month accounting period.
The closure of The News of the World in July also cost the company dear, with £55.5 million paid out in redundancies and legal fees. However, the massive costs racked up so far could have little bearing on the final bill. Both the company and its auditors, Ernst & Young, point out it is almost impossible to know what that cost will be.
The accounts for News Group carry an "emphasis of matter" warning from the auditors, in accounting terms the equivalent of a yellow card in football.
Referring to the provisions made against civil claims, the auditor states: "The ultimate exposure of News Group Newspapers in relation to these matters is subject to significant uncertainty, and the total amounts… will be dependent on many factors, including… the potential size of any civil, administrative or criminal fines or penalties."
Shareholders reacted with unease to the disclosures. "It's a significant number," said Julie Tanner, of Christian Brothers Investment Services. "Shareholders need to be concerned."
The complexity of the problems being unwound at News Group and associated companies was highlighted by the substantial rise in auditors' fees the company has had to pay, rising from £1,37,000 in 2010 to £311,000 last year.
There was also a £1.2 million payment as compensation for loss of office. The payment is thought to have been made to Clive Milner, the former chief operating officer who stepped down during the year. Payments Rebekah Brooks or James Murdoch may have received were not disclosed as they left after the year-end.
Accounts for News Group's parent company, NI Group, are overdue. The company has informed Companies House the results will be produced within a month.
Accounts for Times Newspapers, owners of The Times and The Sunday Times, showed a loss of £11.6 million, down from a loss of £45m in 2010. The company suffered £9.3m of restructuring costs. A spokesman declined to comment.
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