SMG PLC
20 October 2006
SMG - Market Update
The Board of SMG plc ('SMG') wishes to update the market on the following
issues: general trading; the sales processes for Primesight and Pearl & Dean;
and the recruitment of a new Group Chief Executive.
General Trading
As reported by a number of UK media companies, broadcast markets have weakened
significantly during the second half of 2006, with ITV1 and cinema revenues
being particularly affected in the fourth quarter. Primesight continues to
trade ahead of market expectations and meaningfully above last year's
performance,while Virgin Radio maintains its out-performance of the radio
market. However,due to the high operational gearing of its television and
cinema businesses, the Board now believes that SMG's profits for the full year
2006 will fall materially behind its previous expectations. As a result, the
Group is in discussions with its banks in relation to a potential breach of
certain of its financial covenants and a satisfactory outcome is expected.
Primesight/Pearl & Dean
SMG has received a significant number of expressions of interest in both
Primesight and Pearl & Dean. The disposal process for each business is under
way, with the sale of Primesight proceeding more quickly as a result of its
stronger trading. Further market updates will be released as appropriate.
Group Chief Executive
Search consultants were appointed during the summer to assist in the
recruitment process for the Group's new chief executive. A 'long list' of
potential candidates has been presented to the Board, from which a number of
candidates were selected to be approached. The Chairman is currently in
discussions with potential candidates and a further update will be provided
once an appointment has been made.
Ends
20 October, 2006
Further enquiries:
SMG
Callum Spreng
0141 300 3640
Group Communications Director
SMG plc
Brunswick
James Hogan
Simon Sporborg
020 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange