SMG’s Expanded UK Presence Lifts Profits By 25%
SMG, formerly known as the Scottish Media Group, has announced pre-tax profits of £30m for the six-month period to the end of June. This represents a 25% increase on the same period last year, helped by its successful acquisition of the Ginger Media Group in January (see Ginger Acquisition Strengthens SMG’s Presence). Total turnover increased 37% to £152.7m.
Unveiling its interim results today the group announced its intention to raise up to £45m by way of a cash share placing; 14.6 million new shares will be placed to “strengthen the Group’s balance sheet…and provide the necessary flexibility to continue the group’s successful development.”
In the last six months the group has undergone a radical restructure of its business in order to reflect its push into the English market (see Scottish Media Group Announces Restructure Plans). Andrew Flanagan, chief executive of SMG, said: “With the acquisition and successful integration of Ginger Media Group firmly under our belt, and delivering exceptional returns, we are now set to continue our development as a major player in UK media. This share placing will provide us with the financial flexibility to capitalise on appropriate opportunities as they arise.”
The group spent £10m on expanding its online presence earlier this year (see Scottish Media To Spend £10m On Web Plans) and its joint venture with Flextech to create a network of classified ad sites under the Scene One brand is expected to launch in September. Ginger Online is developing rapidly, and Virgin was the first radio station to launch a WAP site earlier this year (see Virgin WAP Signs Sponsorship Deal With IoBox).
The group has recently been the subject of takeover speculation itself. When Carlton Communications lost out in the battle for control of ITV (see Granada Takes Control Of ITV) its chairman Michael Green, is reported to have expressed an interest in the ITV television assets of SMG – the Scottish Television and Grampian franchises.
SMG share prices were up 3˝p to 303˝p this morning.
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