Scottish Media Group SMG Plc has announced its plans to sell two of its non-core assets, Primesight and Pearl and Dean, and float its Virgin Radio business, after a 100-day company review.
Billboard advertiser Primesight has been returned to the market after being halted earlier this year, and has been joined by cinema advertiser Pearl and Dean. The changes are expected to result in an improved company focus and increase programming. They follow a troubled year, that saw annual group profits halved as the company’s new media strategy failed to deliver.
New chief executive Rob Woodward said “Over the next six months we will focus on the disposal of non-core assets. We have already achieved savings of £1.5m and we are very confident about achieving a further £1m by the end of the year.”
Although the number of chief executives has been cut from seven to three, no mass job cuts are planned.
Further to the turnaround plan, Virgin Radio is set to be floated in order to reduce company debt. The radio business, which analysts estimate to be worth £85m, has also attracted several offers, although no bidders have yet been named. This follows Chrysalis’ sale of its radio business to Global Radio for £170m, proposed earlier this week.
Mr Woodward commented “We have received a number of approaches in parallel with the IPO process which remains our main focus.”
“The Chrysalis deal is good news for us because it confirms that there is interest in pure play radio.”
