Scottish Radio Holdings has unveiled its first half results, giving investors a mixed picture of its performance, with a strong first half operating result overshadowed by lacklustre trading and a drop of 7% in broadcasting revenues year on year for April.
The company’s overall turnover in the first half was up 10% on the last period to 51.9 million, while like for like revenues were up by 4%.
The rise led to the board lifting the company’s interim dividend by 7% to 7.5p from 7p. It also said it has managed to reduce borrowings to £41.7 million.
Commenting on the results, SRH chairman, Lord Gordon of Strathblane CBE, said: “With excellent operating margins in both radio and press, and healthy cash flow, SRH is in a strong position to continue to develop the Group. First half profits growth has been a particularly good achievement against a strong first half year in 2004, with both operating divisions showing impressive increases.”
He added: “Current trading in radio is somewhat lacklustre, and we experienced a 7% decline in total broadcast revenue in April. May is looking better, although still below last year, and current indications are that June will be similar to last year. Press advertising and circulation revenues were up 8% in April and we expect press to continue to perform well in May and June. Notwithstanding recent radio revenue challenges, the Board remains confident of a good result for the group for the year as a whole.”
SRH hit headlines recently, as the company came out fighting against rumours of a takeover bid by rival radio operator, Emap. In a statement to the city, the broadcaster claimed that it would only support an offer for the company that reflects “the full and fair value” of its growth prospects, including a premium for control.
The firm stated that it was “confident about its future as an independent company”, and said that it is “well placed to continue to generate significant long-term shareholder value.” SRH also said that its share price does not adequately reflect its value (see Emap Interested In Acquiring SRH).
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