Business
Statement re Market Update
Statement re Market Update.
About this update from Stv Group Plc
[{"type":"text","content":"\n SMG PLC\n20 October 2006\n\n\n\nSMG - Market Update\n\nThe Board of SMG plc ('SMG') wishes to update the market on the following\nissues: general trading; the sales processes for Primesight and Pearl & Dean;\nand the recruitment of a new Group Chief Executive.\n\nGeneral Trading\n\nAs reported by a number of UK media companies, broadcast markets have weakened\nsignificantly during the second half of 2006, with ITV1 and cinema revenues\nbeing particularly affected in the fourth quarter. Primesight continues to \ntrade ahead of market expectations and meaningfully above last year's \nperformance,while Virgin Radio maintains its out-performance of the radio \nmarket. However,due to the high operational gearing of its television and\ncinema businesses, the Board now believes that SMG's profits for the full year\n2006 will fall materially behind its previous expectations. As a result, the\nGroup is in discussions with its banks in relation to a potential breach of \ncertain of its financial covenants and a satisfactory outcome is expected.\n\nPrimesight/Pearl & Dean\n\nSMG has received a significant number of expressions of interest in both\nPrimesight and Pearl & Dean. The disposal process for each business is under\nway, with the sale of Primesight proceeding more quickly as a result of its\nstronger trading. Further market updates will be released as appropriate.\n\nGroup Chief Executive\n\nSearch consultants were appointed during the summer to assist in the\nrecruitment process for the Group's new chief executive. A 'long list' of \npotential candidates has been presented to the Board, from which a number of \ncandidates were selected to be approached. The Chairman is currently in \ndiscussions with potential candidates and a further update will be provided \nonce an appointment has been made.\n\nEnds \n\n20 October, 2006\n\nFurther enquiries:\n\nSMG\nCallum Spreng \n0141 300 3640\nGroup Communications Director\nSMG plc\n\nBrunswick\nJames Hogan \nSimon Sporborg\n020 7404 5959\n\n\n This information is provided by RNS\n The company news service from the London Stock Exchange\n \n ","length":2325,"tagName":"div"}]