TIDMSTVG
RNS Number : 0766S
STV Group PLC
07 March 2023
Press Release 0700 hours, 7 March 2023
STV Group plc Full Year Results to 31 December 2022
Record adjusted operating profit as diversification strategy
continues to deliver
Highlights
-- Diversification on track, with 38% of earnings now from Digital and Studios
-- Favourable new ITV partnership significantly strengthens STV digital strategy
-- STV Player registered users surpass 5m target one year early, in Q1 2023
-- STV Studios doubles new programme commissions with further strong growth to come
-- STV remains Scotland's most watched peak time channel for the 4(th) year in a row
-- Confident of achieving 2023 diversification targets, despite ongoing economic uncertainty
-- Board proposes final dividend of 7.4p, bringing full year to 11.3p, +3% on 2021
Financial Summary 2022 2021 Change
------------------------------------------- -------------- ----------- -------------- -------------- ------------
Revenue GBP137.8m GBP144.5m -5%
------------------------------------------- -------------------------- -------------- -------------- ------------
Total advertising revenue GBP110.0m GBP112.6m -2%
------------------------------------------- -------------------------- -------------- -------------- ------------
Adjusted operating profit* GBP25.8m GBP25.2m +2%
------------------------------------------- -------------------------- -------------- -------------- ------------
Adjusted operating margin* 18.7% 17.5% +120bps
------------------------------------------- -------------------------- -------------- -------------- ------------
Adjusted PBT** GBP24.1m GBP23.6m +2%
------------------------------------------- -------------------------- -------------- -------------- ------------
Profit before tax GBP22.2m GBP20.1m +11%
------------------------------------------- -------------------------- -------------- -------------- ------------
Adjusted basic EPS** 42.3p 45.6p -7%
------------------------------------------- -------------------------- -------------- -------------- ------------
Statutory basic EPS 38.3p 42.7p -10%
------------------------------------------- -------------------------- -------------- -------------- ------------
Net (debt)/cash (+) (GBP15.1m) GBP0.3m (GBP15.4m)
------------------------------------------- -------------- ----------- -------------- -------------- ------------
Dividend per share (full year) 11.3p 11.0p +3%
------------------------------------------- -------------------------- -------------- -------------- ------------
* Before exceptional items and inclusive of High-End Television tax credits (the latter 2021
only)
** Before exceptional items and IAS19 interest, and inclusive of High-End Television tax credits
(the latter 2021 only)
(+) Excluding lease liabilities
Throughout this announcement, where we state record financial performance, it is made by
reference to 2010 when the final disposal was made and the Group as we know it today remained
Financial highlights
-- Adjusted operating profit of GBP25.8m, +2% on 2021
-- Total advertising revenue (TAR) of GBP110.0m, down only 2% on record 2021
-- Total Group revenue of GBP137.8m, -5% on 2021, as a result of
marginally lower TAR and timing of production deliveries
-- STV-controlled advertising continuing to show growth and
resilience, with VOD advertising +9% and regional advertising down
4% (excluding Scottish Government spend, regional grew 18%)
-- Digital revenue +7% at GBP19m and digital profit +9% at GBP8.5m
-- Studios revenue of GBP23.7m down 11% on prior year due to
timing of deliveries, in particular drama (2021: GBP26.6m). Studios
adjusted operating profit +6% at GBP1.4m
-- Adjusted operating margin of 18.7% (2021: 17.5%), reflecting
improved margins in both Digital and Studios
-- Net debt (excluding leases) of GBP15.1m (2021: net cash
GBP0.3m) driven by short-term working capital needs to support
Studios growth; will unwind as programmes are delivered
Another year of strong audience performance
-- On TV, STV's peaktime viewing share of 22.5% was the highest
since 2009, with our lead over BBC1 widening:
o Most watched peaktime channel in Scotland for 4(th) year in a row
o Bigger peaktime 16-34 audience than C4, ITV2 and BBC Three combined
o All-time audience higher than any other commercial channel on 361 days of 2022
o November 2022 was STV's highest viewing share for 19 years,
driven by I'm a Celebrity and the FIFA World Cup
-- STV Player enjoyed its best ever streaming performance, with growth across all key metrics:
o Registered users up 17% to 4.9m, and now over 5m in Q1 2023
o Online viewing up 6%, advertising impressions +27%
o Streams up 1%, with live streams up 5%
o Monthly active users up 10%, STV Player VIP users up 16%
o New research shows that 20% of Scots have already cancelled at
least one paid-for streaming service, with a further 38% saying
they intend to
Continued strategic momentum
-- Studios : STV Studios continues to scale rapidly:
o 30 new commissions and now 11 returning series
o 3 major new returnable drama series currently in production
for Apple, BBC and C4
o 2023 will be a breakthrough year with GBP50m+ of commissions
already secured for delivery, more than double 2022
-- Digital : STV Player's long-term streaming growth secured through new ITV partnership:
o 100+ hours per year of new, exclusive content will launch on STV Player through new ITV deal
o Long-term content partnership in place with ITV until 2029, on a variable cost basis
o Digital content offer now 6,000+ hours, with 156 new titles and 1,600 hours added in 2022
-- Scottish advertising : More than 1,000 deals through the STV
Growth Fund since launch in 2018, allocating just under GBP20m. In
2022 there were 223 deals, with 70% of 2022 Growth Fund members
re-booking from the previous year.
-- Targets : On track to hit or surpass our 3-year growth targets to the end of 2023 to:
o Double digital viewing, users and revenue (to GBP20m)
o Quadruple Studios revenue (to GBP40m)
o Achieve at least 50% of operating profit from outside
traditional broadcasting
2023 outlook
-- Advertising impacted by ongoing economic uncertainty, but expected to remain resilient
o Total advertising revenue down around 15% in Q1 as
expected
o Digital VOD advertising up around 20% in Q1
o Scottish advertising expected to be down 20-25% in Q1, flat to
slightly up excluding Scottish Government spend
o April TAR expected to be down 10-15%
-- 2023 content line-up on STV and STV Player stronger than ever
o 34 new drama boxsets vs 14 in 2022
o Exclusive coverage of the Rugby World Cup in the autumn
-- Studios building momentum, with previous guidance of GBP50m
revenue and at least GBP3m operating profit reconfirmed
-- Digital content cost guidance unchanged post ITV deal; new
content funded through revenue share arrangement
-- Other cost inflation partly mitigated by savings
-- H1/H2 split more pronounced this year due to advertising market and Studios phasing
Dividend
-- The Board proposes a final dividend of 7.4p per share for
2022, up 1% on 2021, giving a full year dividend of 11.3p per
share, +3% on 2021, after considering all relevant factors
including the ongoing macroeconomic and geopolitical
uncertainty
-- The Board remains committed to a balanced approach to capital
allocation across investing for growth, fulfilling our pension
obligations, and paying a sustainable, progressive dividend to
shareholders.
Simon Pitts, Chief Executive Officer, said:
"2022 was another year of growth for STV where we delivered
increased operating profit beyond our record performance in 2021
while continuing to support our people, partners and
communities.
Our diversification strategy, focused on driving growth in
digital streaming and content production, continues to accelerate,
with digital profit up 9% and Studios profit up 6%. Nearly 40% of
STV's earnings now come from these new growth areas as we reduce
our reliance on traditional television and create a vibrant,
future-facing media business.
Our audience position remains unrivalled, with STV being
Scotland's most popular peaktime TV channel for the 4(th) year in a
row and our viewing share the highest since 2009.
Streaming service STV Player had another record year, delivering
growth against all key metrics and surpassing our target of 5m
registered users in early 2023, one year early. Our enhanced
long-term partnership with ITV will propel the next phase of our
streaming growth, guaranteeing exclusive access to 100+ hours of
new, original UK content every year and complementing our extensive
acquired content offering.
STV Studios is scaling rapidly and profitably, winning a record
30 new commissions in 2022 and already securing over GBP50m in
revenue for 2023. This will be a breakthrough year as we deliver 3
major new dramas for Apple, BBC and C4 and make meaningful progress
towards our goal of becoming the UK's leading nations & regions
production company.
The advertising market showed further resilience in 2022 with
STV total advertising revenues finishing only 2% down on our record
2021 performance. As expected, given the uncertain economic climate
and strong 2022 comparator, STV's Q1 2023 total advertising is down
by around 15%, though digital VOD advertising on STV Player is
expected to be up around 20% and Scottish SME spend - excluding
Scottish Government spend - also expected to be flat to slightly
up, offering some encouragement for 2023. Our advertising
performance should also be bolstered by a very strong content
line-up which includes exclusive coverage of the men's Rugby World
Cup starting in September.
The Board has proposed a final dividend of 7.4p per share,
giving a full year dividend of 11.3p, +3% on 2021.
There will be a presentation for analysts today, 7 March 2023,
at 12.30 pm, via Zoom. Should you wish to attend the presentation,
please contact Angela Wilson, angela.wilson@stv.tv or telephone:
0141 300 3000.
Enquiries:
STV Group plc: Kirstin Stevenson, Head of Communications Tel: 07803 970 106
Camarco: Geoffrey Pelham-Lane, Partner Tel: 07733 124 226
Ben Woodford, Partner Tel: 07790 653 341
Financial and operating review
Group overview
Total revenue for the year was GBP137.8m (2021: GBP144.5m), down
5% as a result of lower advertising and Studios revenues year on
year. Excluding the external lottery management company (ELM)
revenues from 2021, which was disposed of in August 201, total
revenues were down 4% year on year.
Total advertising revenue (TAR) was GBP110.0m (2021: GBP112.6m),
a decrease of only 2% on the record 2021 performance, despite
significant economic uncertainty particularly in the second half of
the year. After a first half which saw TAR grow by 4% year on year,
the third quarter was more challenging as the interest rate and
inflationary environment took hold and consumer confidence was
impacted by the cost-of-living crisis. Q4 was stronger than Q3,
boosted by the advertising opportunities associated with hit
entertainment shows like I'm a Celebrity and the FIFA World Cup,
however the Q4 performance wasn't sufficient to offset Q3 declines,
and TAR fell in H2 by 7% overall. R evenues in Studios were lower
as a result of the timing of drama deliveries in particular.
Adjusted operating profit increased by 2% to GBP25.8m (2021:
GBP25.2m), equivalent to an operating margin of 18.7% (2021:
17.5%). On a statutory basis, operating profit increased by 17% to
GBP25.3m (2021: GBP21.6m).
Adjusted profit before tax (PBT) was GBP24.1m (2021: GBP23.6m),
after charging finance costs of GBP1.6m (2021: GBP1.5m). These
comprised interest on the Group's borrowings of GBP1.1m (2021:
GBP1.2m) with the balance being non-cash costs in relation to the
Group's lease liabilities. These adjusted results are before
finance costs in relation to the Group's defined benefit pension
schemes (2022: GBP1.4m; 2021: GBP0.8m) and exceptional costs (2022:
GBP0.5m; 2021: GBP0.8m). The prior year adjusted PBT also included
High-End Television (HETV) tax credits receivable (2022: nil; 2021:
GBP1.9m). Statutory profit before tax for the year was GBP22.2m, up
11% on 2021 (GBP20.1m).
A total tax charge of GBP4.9m has been recognised in the year
(2021: GBP0.7m), representing an effective tax rate of 22.1% (2021:
3.5%). This is higher than the UK standard rate of corporation tax,
principally due to deferred tax in relation to the Group's defined
benefit pension schemes. Statutory profit after tax for the year
was GBP17.3m (2021: GBP19.4m).
Adjusted EPS (before exceptional items and IAS19 finance costs)
at 42.3p was down 7% on the prior year and on a statutory basis EPS
was down 4.4p to 38.3p. The main driver for the reduction in EPS
under both measures is the increase in the effective tax rate in
the year.
The Group closed the year with net debt (excluding leases) of
GBP15.1m compared to a small net funds position of GBP0.3m at the
start of the year. This position reflects the unwinding of the
working capital cash inflow in 2021, and the short-term
requirements of a growing Studios business. In addition, we
invested GBP0.9m in Mighty Productions in Q1 2022 and have provided
a GBP3.0m production financing facility to Two Cities (of which
GBP2.4m was drawn in the year) to support the production of Blue
Lights for the BBC. This production financing facility matures in
the first half of 2023. The Group's operating cash conversion was
45% in the year (2021: 161%) - looking at both years together, the
conversion rate was 98%.
The Group has in place a 3-year GBP60m revolving credit
facility, with GBP20m accordion, that has been extended to March
2026 through the exercise of two 1-year extension options. At the
end of the year, the Group's leverage was 0.5 times (2021: nil) and
interest cover was 42.8 times (2021: 49.4 times), both metrics well
within the covenant limits.
The IAS19 accounting deficit across the Group's two defined
benefit pension schemes was GBP63.1m at the end of the year (2021:
GBP79.4m). The decrease in the liability is primarily driven by an
increase in discount rates over the period due to the increase in
corporate bond yields, and payment of deficit funding
contributions.
Broadcast
STV remains the most watched commercial TV channel in Scotland
by a considerable margin. STV reaches 3 million adults in Scotland
each month - more than any other commercial channel, and has a
higher daily, weekly, and monthly reach than all subscription
(SVOD) services combined. STV is the only PSB in Scotland to
outperform its Network equivalent, tracking ahead of ITV in terms
of network share across all time (+1.4%) and peak time (+1.9%) in
2022.
For the fourth consecutive year, STV was the best watched peak
time channel in Scotland, ahead of BBC1. The channel delivered 96%
of the top 500 commercial programme audiences across the year. High
quality shows including soap favourites, Coronation Street and
Emmerdale; and top dramas Our House and Karen Pirie, were among our
top ten most popular series commanding significant audiences.
The 2022 FIFA World Cup and I'm A Celebrity...Get Me Out of
Here! helped STV achieve a 25% viewing share in November, the
channel's best-performing month since 2003. Indeed, the FIFA World
Cup tournament scored the channel a 19-year viewing share high. The
competition was watched by 7 in 10 people on STV in Scotland (3.3m)
over four weeks. 24 out of the 29 matches on STV outperformed the
UK network, with STV's viewing share up 3% on the UK average. The
World Cup also delivered the single biggest programme of the year
across all channels in Scotland, with the Quarter Final featuring
England vs France attracting 1.1m viewers.
News and current affairs are the cornerstone of our service in
Scotland. Award-winning news programme, STV News at Six, has been
Scotland's most watched news programme since 2019, reaching 1.4m
viewers per month and performs 10 share points ahead of the ITV
Network and 5 share points ahead of BBC Reporting Scotland.
Our award-winning training initiative, STV Expert Voices, is
committed to establishing more diversity across the contributors on
our programmes and the team has trained more than 700 people to
date. STV News achieved its gender and diversity targets for its
output across 2022, with 50% of contributors female and 9% from an
ethnically diverse background.
We use our platforms to make a positive social impact in several
ways via programming and promotional airtime. Our charity, the STV
Children's Appeal, continues to support children and young people
impacted by poverty in Scotland and this year's fundraising total
of over GBP3m brought overall funds raised since launch to over
GBP30m.
Reflecting the more challenging economic backdrop in the second
half of the year, regional advertising was down 4% in 2022, largely
as a result of a decline in Scottish Government advertising as a
result of the pandemic threat receding. Excluding Scottish
Government spend, regional advertising by Scottish SMEs and larger
clients was up 18% year on year. The STV Growth Fund stands at
GBP30m. From launch to the end of 2022, we have allocated almost
GBP20m across more than 950 deals (now more than 1,000 in Q1 2023)
with Scottish companies, with over 200 deals completed in 2022. We
have also launched The STV Green Fund and the STV Inclusion Fund,
which welcome environmentally conscious and socially inclusive
businesses to work with us.
Digital
Across the year, STV Player delivered its highest ever viewing
figures with viewing hours up 6% at 54m and streams up 1.5% at
116m. Average monthly active users were up 10% at 1.1m per month.
Our total active registered users - individuals who have signed up
to the service and provided their details - were up 400,000 for the
full year, and in early 2023 we surpassed our 5m target for total
registrations nearly one year early.
Key to this performance were two stand-out pieces of event
television: I'm A Celebrity...Get Me Out Of Here! became our
most-streamed series (3.4m streams); and the winter World Cup was
our most streamed sporting event ever (6.4m streams). Changes to
the linear peak schedule in March reinforced the strength of our
Soaps with the combined consumption of Coronation Street and
Emmerdale growing 21% to a record high of over 9m streaming hours
across 2022.
Our addressable audience is significant, with STV Player
available on all major platforms. Registrations to STV Player
continue to grow, increasing by 17% year on year to 4.9m (now more
than 5m in Q1 2023), and within that our monthly active user base
also grew by 10% to 1.1m. STV Player VIP users also grew by 16%,
which is significant because VIP users consume considerably more
STV Player content than opted-out users. Total VOD viewing
increased year on year in nine months of the year, even with the
tough 2021 comparators of lockdown and the UEFA European
Championships.
In December 2022, we agreed an enhanced strategic partnership
with ITV around content sharing and advertising sales that creates
incremental digital value for both companies and aligns our
interests in the streaming age. This long-term agreement until 2029
sees STV Player take exclusive Scottish rights for a range of
premiere content and is expected to encompass at least 100 hours of
original content per year. The first wave of new titles included UK
original dramas like A Spy Among Friends, Without Sin and Nolly.
This deal also sees ITV's sales team take on exclusive
responsibility for selling national VOD and simulcast advertising
inventory on STV Player from 2023, allowing STV to benefit from
ITV's unrivalled scale and targeting capability in the UK
market.
We have continued our successful strategy of adding high-quality
3(rd) party content, which complements our slate of original
programming. 20 new content deals were secured, adding 156 new
titles to the Player in 2022 and boosting our already significant
library by over 1,600 hours. STV Player-only content generated more
than 32m VOD streams across the year, accounting for 39% of total
VOD streams. 2023 is off to a strong start, with our acquisition of
Brookside seeing the long running soap become the fastest programme
on STV Player to reach 1m streams and boosting ex-Scotland streams
to 25% of the total in Q1 2023.
All of this resulted in commercial VOD delivery growing across
the year, with total advertising impressions up 27% year on year,
driving a 9% increase in VOD advertising revenues, and profit and
margin growth year on year.
Studios
STV Studios has had another excellent year. Our ambitious
strategy is to become a world class producer for the biggest TV
networks and global streamers and the UK's number 1 nations &
regions production company. In 2022 our growth momentum continued,
and a record 30 commissions were won. More than GBP50m revenue has
been secured for 2023, significantly ahead of our target of GBP40m
by 2023.
We continue to win new business across the genres from the main
UK broadcasters, global streamers and international buyers, meaning
we have been in a consistently busy period of programme production
whilst continuing to develop and pitch original new ideas and
formats, ensuring a strong pipeline for the future.
Our teams are delivering high value returnable and returning
drama series alongside high-volume returning unscripted series,
which are significant contributors to our business growth and are
also important for the development of the creative industry and
talent base in Scotland.
We now work with nine production labels and remain open to
future prospects. In addition to our three in-house production
teams, we have different holdings in six independent production
companies and this low-risk strategy enables us to spread our
creative bets, with the option of increasing our holdings in these
companies over time. In 2022, we added Mighty Productions to our
stable - founded by the creative team behind daytime quiz hits like
Tipping Point and !mpossible. Each of our labels has achieved
success in 2022 including Tod Productions who, alongside STV
Studios, won a major commission for AppleTV+ to produce crime
thriller Criminal Record starring Peter Capaldi and Cush Jumbo, and
Barefaced TV, who produced a major reality dating show for
Discovery+.
Commissioning highlights include a second series of our prison
drama, Screw, which was confirmed following the success of the
first series that, at the time of broadcast, was Channel 4's most
successful drama launch since It's A Sin. The show, starring Nina
Sosanya (His Dark Materials) and Jamie-Lee O'Donnell (Derry Girls),
has just completed shooting in Glasgow.
Quiz show Bridge of Lies with Ross Kemp, a commission won
through a fiercely competitive tender process in late 2021, was an
instant ratings success for BBC One's daytime schedule, with an
average audience of over 1m viewers. There followed a recommission
for a second and third series, made up of 25 x 45" episodes for
daytime and a special primetime celebrity series. The latter
launched strongly on Saturday nights in January 2023 with 2.7m
viewers (17% share).
Our returnable antiques-based formats have seen us produce seven
series in large volumes in 2022 for BBC One, BBC Two, Really and
Channel 5, including Antiques Road Trip and its celebrity sister
version; new commission, The Great Auction Showdown; The Yorkshire
Auction House and a celebrity series, plus off-shoot, The Edinburgh
Auction House. An additional win was The Travelling Auctioneers for
BBC One, the channel's most successful daytime launch in 2022 and
the BBC's biggest daytime factual launch in the last 6 years.
Regulatory
We welcome the UK Government's proposal for a new regulatory
framework to secure the vital contribution of free-to-air public
service broadcasters in the digital age and look forward to the
publication of its new Media Bill in 2023. The Department for
Culture, Media and Sport (DCMS) has recognised the "unique
relevance" of STV's public service contribution, particularly in
Scottish news and current affairs, and the importance of ensuring
our programming is available and easily found on all major digital
platforms, as it is on broadcast, in the future. It is important
that the Media Bill is published swiftly, given this will be the
legislation that underpins the Channel 3 licences, which will renew
in January 2025 with applications due in April 2023. STV is
confident of renewing its current licence.
We continue to engage with stakeholders and policy-makers on the
following regulatory priorities:
- Securing prominence for public service broadcasters, including
nations players like STV, on all digital platforms, to ensure our
content is available, accessible and prominent on the digital
platforms that viewers are increasingly choosing to access their
entertainment.
- Safeguarding free-to-air, high quality, impartial and comprehensive Scottish and local news.
- Support and stimulus measures to ensure Nations and Regions
television production, across all genres, continues to grow.
- A level regulatory playing field between TV and online
players, particularly in relation to advertising regulation.
Consolidated income statement
Year ended 31 December 2022
2022 2021
Before Exceptional Before Exceptional
exceptional items Results exceptional items Results
items (note for items (note for year
6) year 6)
Note GBPm GBPm GBPm GBPm GBPm GBPm
Revenue 5 137.8 - 137.8 144.5 - 144.5
Net operating expenses (112.0) (0.5) (112.5) (121.2) (1.7) (122.9)
------------- ------------ ---------- ------------- ------------ -----------
Operating profit 25.8 (0.5) 25.3 23.3 (1.7) 21.6
Finance costs
* borrowings (1.1) - (1.1) (1.2) - (1.2)
- defined benefit pension
schemes (1.4) - (1.4) (0.8) - (0.8)
* lease interest (0.5) - (0.5) (0.3) - (0.3)
Provision for impairment
losses - ELM debtor - - - - 0.3 0.3
------------- ------------ ---------- ------------- ------------ -----------
Total finance costs (3.0) - (3.0) (2.3) 0.3 (2.0)
------------- ------------ ---------- ------------- ------------ -----------
Share of loss of
an associate (0.1) - (0.1) (0.1) - (0.1)
Gain on sale of non-current
asset - - - - 0.6 0.6
------------- ------------ ---------- ------------- ------------ -----------
Profit before tax 22.7 (0.5) 22.2 20.9 (0.8) 20.1
Tax (charge)/credit 7 (5.0) 0.1 (4.9) (1.0) 0.3 (0.7)
------------- ------------ ---------- ------------- ------------ -----------
Profit for the year 17.7 (0.4) 17.3 19.9 (0.5) 19.4
------------ ----------
Attributable to:
Owners of the parent 17.9 (0.4) 17.5 19.9 (0.5) 19.4
Non-controlling
interests (0.2) - (0.2) - - -
------------- ------------ ---------- ------------- ------------ -----------
17.7 (0.4) 17.3 19.9 (0.5) 19.4
------------- ------------ ---------- ------------- ------------ -----------
Earnings per share
Basic 8 39.3p 38.3p 43.8p 42.7p
Diluted 8 37.5p 36.6p 42.1p 41.0p
A reconciliation of the statutory results to the adjusted
results is included at note 19. The above consolidated income
statement should be read in conjunction with the accompanying
notes.
Consolidated statement of comprehensive income
Year ended 31 December 2022
2022 2021
GBPm GBPm
Profit for the year 17.3 19.4
Items that will not be reclassified subsequently
to profit or loss:
Remeasurement of defined benefit pension schemes 6.5 (17.2)
Deferred tax (charge)/credit (1.5) 8.5
Revaluation loss on listed investment to market
value (0.3) (2.3)
Other comprehensive expense - net of tax 4.7 (11.0)
Total comprehensive income for the year 22.0 8.4
----- ------
Attributable to:
Owners of the parent 22.2 8.4
Non-controlling interests (0.2) -
----- ------
22.0 8.4
----- ------
The above consolidated statement of comprehensive income should
be read in conjunction with the accompanying notes.
Consolidated balance sheet
At 31 December 2022
2022 2021
Note GBPm GBPm
Non-current assets
Intangible assets 10 1.2 1.6
Property, plant and equipment 11 10.6 9.8
Right-of-use assets 12 18.6 19.9
Investments 13 2.5 1.9
Deferred tax asset 14 21.9 26.5
Trade and other receivables 1.5 0.4
------- -------
56.3 60.1
------- -------
Current assets
Inventories 47.0 17.7
Trade and other receivables 39.9 30.1
Cash and cash equivalents 11.3 14.7
98.2 62.5
------- -------
Total assets 154.5 122.6
------- -------
Equity
Ordinary shares 16 23.3 23.3
Share premium 115.1 115.1
Capital redemption reserve 0.2 0.2
Merger reserve 173.4 173.4
Other reserve 1.8 1.4
Accumulated losses (321.8) (339.2)
------- -------
Shareholders' equity (8.0) (25.8)
Non-controlling interests (0.3) (0.1)
------- -------
Total equity (8.3) (25.9)
------- -------
Non-current liabilities
Borrowings 15 26.4 14.4
Lease liabilities 18.7 19.7
Retirement benefit obligations 18 63.1 79.4
108.2 113.5
------- -------
Current liabilities
Trade and other payables 53.7 33.8
Lease liabilities 0.9 1.2
54.6 35.0
------- -------
Total liabilities 162.8 148.5
------- -------
Total equity and liabilities 154.5 122.6
------- -------
The above consolidated balance sheet should be read in
conjunction with the accompanying notes.
Consolidated statement of changes in equity
Year ended 31 December 2022
Capital Attributable
Share Share redemption Merger Accumulated to owners Non-controlling
capital premium reserve reserve Other losses of the interest Total
reserve parent equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
At 1 January 2022 23.3 115.1 0.2 173.4 1.4 (339.2) (25.8) (0.1) (25.9)
--------- --------- ----------- --------- --------- ------------- ------------- ----------------- --------
Profit/(expense)
for the year - - - - - 17.5 17.5 (0.2) 17.3
Other
comprehensive
expense - - - - - 4.7 4.7 - 4.7
--------- --------- ----------- --------- --------- ------------- ------------- ----------------- --------
Total
comprehensive
income/(expense)
for the year - - - - - 22.2 22.2 (0.2) 22.0
--------- --------- ----------- --------- --------- ------------- ------------- ----------------- --------
Net share based
compensation - - - - 0.4 0.3 0.7 - 0.7
Dividends paid
(note
9) - - - - - (5.1) (5.1) - (5.1)
--------- --------- ----------- --------- --------- ------------- ------------- ----------------- --------
At 31 December
2022 23.3 115.1 0.2 173.4 1.8 (321.8) (8.0) (0.3) (8.3)
--------- --------- ----------- --------- --------- ------------- ------------- ----------------- --------
At 1 January 2021 23.3 115.1 0.2 173.4 1.0 (342.8) (29.8) (0.1) (29.9)
----- ------ ---- ------ ---- -------- ------- ------ -------
Profit for the year - - - - - 19.4 19.4 - 19.4
Other comprehensive
expense - - - - - (11.0) (11.0) - (11.0)
----- ------ ---- ------ ---- -------- ------- ------ -------
Total comprehensive
income for the year - - - - - 8.4 8.4 - 8.4
----- ------ ---- ------ ---- -------- ------- ------ -------
Net share based
compensation - - - - 0.4 (0.4) - - -
Dividends paid (note
9) - - - - - (4.4) (4.4) - (4.4)
At 31 December
2021 23.3 115.1 0.2 173.4 1.4 (339.2) (25.8) (0.1) (25.9)
----- ------ ---- ------ ---- -------- ------- ------ -------
The above consolidated statement of changes in equity should be
read in conjunction with the accompanying notes.
Consolidated statement of cash flows
Year ended 31 December 2022
2022 2021
Note GBPm GBPm
Operating activities
Cash generated by operations 17 11.5 34.8
Interest and fees paid in relation to
banking facilities (1.1) (1.4)
Corporation tax received/(paid) 0.2 (1.2)
Pension deficit funding - recovery plan
payment (9.5) (9.3)
Contingent cash payment to pension schemes (2.4) (0.3)
Net cash (used in) / generated by operating
activities (1.3) 22.6
------ ------
Investing activities
Proceeds from sale of investments - 4.7
Proceeds from disposal of subsidiary - 0.6
Purchase of investment in associate (0.9) (0.6)
Loan notes provided to associate - (0.4)
Production finance provided to associate (2.4) (0.6)
Purchase of intangible assets (0.5) (0.4)
Purchase of property, plant and equipment (3.4) (2.5)
Net cash (used in)/generated by investing
activities (7.2) 0.8
------ ------
Financing activities
Payment of obligations under leases (1.8) (1.5)
Borrowings drawn 38.0 3.1
Borrowings repaid (26.0) (11.1)
Dividends paid (5.1) (4.4)
Net cash generated by/(used in) financing
activities 5.1 (13.9)
------ ------
Net (decrease)/increase in cash and cash
equivalents (3.4) 9.5
Cash and cash equivalents at beginning
of year 14.7 5.2
------ ------
Cash and cash equivalents at end of year 11.3 14.7
------ ------
Notes to the preliminary announcement
Year ended 31 December 2022
1. General information
STV Group plc ("the Company") and its subsidiaries (together
"the Group") is listed on the London Stock Exchange, limited by
shares, and incorporated and domiciled in the UK. The address of
the registered office is Pacific Quay, Glasgow, G51 1PQ. The
principal activities of the Group are the production and
broadcasting of television programmes, provision of internet
services and the sale of advertising airtime and space in these
media. Up to its sale on 20 August 2021, the Group also operated a
non-core external lottery management company.
2. Basis of preparation
The financial information set out in the audited preliminary
announcement does not constitute the Group's statutory financial
statements for the year ended 31 December 2022 within the meaning
of Section 434 of the Companies Act 2006 and has been extracted
from the full audited financial statements for the year ended 31
December 2022.
Statutory financial statements for the year ended 31 December
2021, which received an unqualified audit report, have been
delivered to the Registrar of Companies. The reports of the
auditors on the financial statements for the year ended 31 December
2021 and for the year ended 31 December 2022 were unqualified and
did not contain a statement under either section 498(2) or section
498(3) of the Companies Act 2006. The financial statements for the
year ended 31 December 2022 will be delivered to the Registrar of
Companies and made available to all shareholders in due course.
Going concern
At 31 December 2022, the Group was in a net debt position of
GBP15.1m (excluding lease liabilities), comprising drawdowns under
its banking facility of GBP26.4m partially offset by a gross cash
balance of GBP11.3m. The Group is in a net current asset position
and generates cash from operations that enables the Group to meet
its liabilities as they fall due, and other obligations.
The Group has in place a GBP60m revolving credit facility, with
GBP20m accordion, that matures in March 2026 following exercise of
both one-year extension options that were available to the Group
(the second being exercised in March 2023). The covenant package
remains unchanged and includes the key financial covenants of net
debt to EBITDA (leverage), which must be less than 3 times, and
interest cover, which must be greater than 4 times.
As part of the going concern review, the Group considers
forecasts of the total advertising market, from which the Group
generates the majority of its cash inflows, to determine the impact
on liquidity. The Group's forecasts and projections, taking account
of reasonably possible changes in trading performance, show that
the Group will be able to operate within the level of its current
available funding and financial covenants.
The directors performed a full review of principal risks and
uncertainties during the year and approved the Group's updated
three-year plan covering the period to 31 December 2025 in December
2022. As part of this process, the Board gave specific
consideration and challenge to the first year of this plan and
approved it as the budget for FY23. A severe but plausible downside
scenario was identified against the base assumptions in that budget
that reflected crystallisation of a number of risks, principally in
relation to advertising revenues and the number and scale of
programme commissions. Even under this scenario, the Group
generated sufficient cash to enable it to continue in operation and
remain within covenant levels under the Group banking arrangements.
Therefore, the Board concluded that the Group's forecasts and
projections, taking account of reasonably possible changes in
trading performance, show it will be able to operate within the
level of its current available funding and covenant levels.
After making enquiries, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operation for at least 12 months from the date of this report.
Accordingly, the Group continues to adopt the going concern basis
in preparing its consolidated financial statements.
3. Accounting policies
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 December 2022.
There were no changes to accounting standards in the year that had
any material impact on the financial statements.
4. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial
risks: currency risk, credit risk, liquidity risk and cash flow
interest rate risk.
The carrying value of non-derivative financial assets and
liabilities, comprising cash and cash equivalents, trade and other
receivables, trade and other payables and borrowings is considered
to materially equate to their fair value.
5. Business segments
Information reported to the Group's Chief Executive for the
purposes of resource allocation and assessment of segment
performance is by product. The Group's operating segments are
Broadcast, Digital and Studios. The trade of STV ELM is included
within 'Other' up to the date of disposal in August 2021.
Broadcast Digital Studios Other Total
2022 2021 2022 2021 2022 2021 2022 2021 2022 2021
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Sales 107.6 108.8 19.0 17.8 23.9 27.0 - 1.0 150.5 154.6
Inter-segment
sales (12.5) (9.7) - - (0.2) (0.4) - - (12.7) (10.1)
------- ------- ------ ------ ------ ------ ----- ----- ------- -------
Segment revenue 95.1 99.1 19.0 17.8 23.7 26.6 - 1.0 137.8 144.5
------- ------- ------ ------ ------ ------ ----- ----- ------- -------
Segment result
Adjusted operating
profit 20.7 21.8 8.5 7.9 1.4 1.3 - - 30.6 31.0
------- ------- ------ ------ ------ ------ ----- -----
Unallocated corporate
expenses (4.8) (5.8)
------- -------
Adjusted operating profit 25.8 25.2
Exceptional items
(note 6) (0.5) (0.8)
HETV tax credits - (1.9)
Finance costs (3.0) (2.3)
Share of loss of an associate (0.1) (0.1)
------- -------
Profit before tax 22.2 20.1
Tax charge (4.9) (0.7)
------- -------
Profit for the year 17.3 19.4
------- -------
Adjusted operating profit (as shown above) is the statutory
operating profit before exceptional items and includes High-End
Television (HETV) tax credits receivable. The HETV tax credits
relate solely to the Studios operating segment. In the current
year, no HETV tax credit claims were made (2021: GBP1.9m) and so
there is no impact on the adjusted operating profit metric from
this adjustment (2021: statutory operating loss of GBP0.6m).
There has been no significant change in total assets from the
amount disclosed in the last annual financial statements.
6. Exceptional items
To provide the users of the consolidated financial statements
with a transparent view of significant and/or non-recurring items
and their impact on the underlying trading of the Group, the Group
presents items recognised in profit or loss for each year analysed
between:
I. Profit before exceptional items; and
II. The effect of exceptional items
The table below analyses the exceptional items in the current
financial year and their impact on key financial statement lines in
the consolidated income statement.
2022 2022 2022 2021 2021 2021
Before Exceptional Results Before Exceptional Results
exceptional items for the exceptional items for
items GBPm year items GBPm the
GBPm GBPm GBPm year
GBPm
Operating profit (i) 25.8 (0.5) 25.3 23.3 (1.7) 21.6
------------ ------------ -------- ------------ ------------ --------
Finance costs (ii) (3.0) - (3.0) (2.3) 0.3 (2.0)
Share of loss of an
associate (0.1) - (0.1) (0.1) - (0.1)
Gain on sale of non-current
asset (iii) - - - - 0.6 0.6
------------ ------------ -------- ------------ ------------ --------
Profit before tax 22.7 (0.5) 22.2 20.9 (0.8) 20.1
Tax charge (iv) (5.0) 0.1 (4.9) (1.0) 0.3 (0.7)
------------ ------------ -------- ------------ ------------ --------
Profit for the year 17.7 (0.4) 17.3 19.9 (0.5) 19.4
------------ ------------ -------- ------------ ------------ --------
Earnings per share
Basic 39.3p 38.3p 43.8p 42.7p
Diluted 37.5p 36.6p 42.1p 41.0p
(i) Operating profit
On 8 December 2022, the Group announced an extended partnership
with ITV for digital content and advertising sales. The agreement
is effective from 1 January 2023, however there were a small number
of one-off costs incurred in 2022 as part of the agreement reached,
principally redundancy and legal costs, that have been presented as
exceptional in the current year.
In May 2021, the Group repaid the full amount of furlough grants
received in 2020 under the Government's Coronavirus Job Retention
Scheme (GBP1.7m) before resuming payment of cash dividends to
shareholders. The Group presented the cost of repayment as
exceptional so as not to distort the underlying trading results of
the business.
(ii) Finance costs
In the prior year, an exceptional credit of GBP0.3m was
recognised relating to amounts recovered from the Scottish
Children's Lottery (SCL) in excess of the expected credit loss
provided for in 2020.
(iii) Gain on sale of non-current asset
In 2021, an exceptional gain of GBP0.6m was recognised, being
net proceeds received on disposal of STV ELM Ltd.
(iv) Tax (charge)/credit
Tax adjustments are the tax effects of the exceptional items
recognised in both years.
7. Tax
2022 2021
GBPm GBPm
The charge for taxation is as follows:
Charge for the year before exceptional
items 5.0 1.0
Tax effect on exceptional items (0.1) (0.3)
--------------- ---------------
Charge for the year 4.9 0.7
--------------- ---------------
Changes to the UK corporation tax rates were substantively
enacted as part of Finance Bill 2021 on 10 June 2021. These
included an increase in the UK corporation tax rate to 25%
effective from 1 April 2023. The deferred tax balances at 31
December 2022 have been stated at a rate of 25% (2021:25%), which
is the rate at which the temporary differences are expected to
unwind.
8. Earnings per share
The calculation of earnings per share is based on earnings after
tax and the weighted average number of ordinary shares in issue
during the year, excluding ordinary shares purchased by the Company
and held for use by the STV Employee Benefit Trust.
For diluted earnings per share, the weighted average number of
ordinary shares in issue is adjusted to assume conversion of all
dilutive potential ordinary shares. The Group has one type of
dilutive potential ordinary shares namely share options granted to
employees.
The adjusted earnings per share figures that have also been
calculated are based on earnings before adjusting items that are
significant in nature and/or quantum and not expected to recur
every year and are therefore considered to be distortive. The
adjusting items recognised in the current and prior years are
operating and non-operating exceptional items and the IAS19 net
financing cost, as well as the related tax effect. Adjusted
earnings per share has been presented to provide shareholders with
an additional measure of the Group's year on year performance.
Earnings per share 2022 2021
Pence Pence
Basic earnings per ordinary share 38.3p 42.7p
Diluted earnings per ordinary share 36.6p 41.0p
Basic earnings per ordinary share (before
exceptional items) 39.3p 43.8p
Diluted earnings per ordinary share (before
exceptional items) 37.5p 42.1p
Adjusted basic earnings per share 42.3p 45.6p
Adjusted diluted earnings per share 40.4p 43.8p
The following reflects the earnings and share data used in the
calculation of earnings per share:
Earnings GBPm GBPm
Profit for the year attributable to equity
shareholders 17.5 19.4
Exceptional items (net of tax) 0.4 0.5
Profit for the year (before exceptional items) 17.9 19.9
Excluding IAS19 financing cost 1.4 0.8
------- -------
Adjusted profit 19.3 20.7
------- -------
Number of shares Million Million
Weighted average number of ordinary shares
in issue 45.6 45.5
Dilution due to share options 2.2 1.8
------- -------
Total weighted average number of ordinary
shares in issue 47.8 47.3
------- -------
9. Dividends
2022 2021 2022 2021
per share per share GBPm GBPm
Dividends on equity ordinary
shares
Paid final dividend 7.3p 6.0p 3.3 2.7
Paid interim dividend 3.9p 3.7p 1.8 1.7
---------- ----------
Dividends paid 11.2p 9.7p 5.1 4.4
---------- ---------- ----- -----
A final dividend of 7.4p per share (2021: 7.3p per share) has
been proposed by the Board of Directors and is subject to approval
by shareholders at the 2023 AGM scheduled for 27 April 2023. The
proposed dividend would be payable on 26 May 2023 to shareholders
who are on the register at 14 April 2023. The ex-dividend date is
13 April 2023. This final dividend, amounting to GBP3.4m has not
been recognised as a liability in these financial statements.
10. Intangible assets
Web development
GBPm
Cost
At 1 January 2022 6.1
Additions 0.5
At 31 December 2022 6.6
------
Accumulated amortisation and impairment
At 1 January 2022 4.5
Amortisation 0.9
At 31 December 2022 5.4
------
Net book value at 31 December 2022 1.2
------
Net book value at 31 December 2021 1.6
------
11. Property, plant and equipment
Plant,
technical
Leasehold equipment Assets
improvements and other under construction Total
GBPm GBPm GBPm GBPm
Cost
At 1 January 2022 0.4 33.8 0.8 35.0
Additions - - 3.4 3.4
Transfers - 2.3 (2.3) -
At 31 December 2022 0.4 36.1 1.9 38.4
--------------- ----------- --------------------- --------
Accumulated depreciation
and impairment
At 1 January 2022 0.2 25.0 - 25.2
Charge for year - 2.6 - 2.6
At 31 December 2022 0.2 27.6 - 27.8
--------------- ----------- --------------------- --------
Net book value at 31 December
2022 0.2 8.5 1.9 10.6
--------------- ----------- --------------------- --------
Net book value at 31 December
2021 0.2 8.8 0.8 9.8
--------------- ----------- --------------------- --------
12. Right of use assets
Property Vehicles Total
GBPm GBPm GBPm
Cost
At 1 January 2022 and 31 December
2022 24.9 0.3 25.2
-------- -------- -------
Accumulated depreciation
At 1 January 2022 5.1 0.2 5.3
Depreciation charge for the year 1.3 - 1.3
At 31 December 2022 6.4 0.2 6.6
-------- -------- -------
Net book value at 31 December 2022 18.5 0.1 18.6
-------- -------- -------
Net book value at 31 December 2021 19.8 0.1 19.9
-------- -------- -------
13. Investments
2022 2021
GBPm GBPm
Listed - 0.3
Associates 2.4 1.5
Other 0.1 0.1
---- ----
2.5 1.9
---- ----
Listed investments comprise entirely of shares held in Mirriad
Advertising plc and are measured at fair value through the
Consolidated Statement of Comprehensive Income.
The movement in investments in associates during 2022 relates to
the acquisition of a 25% stake in quiz show producer, Mighty
Productions Limited, for cash consideration of GBP0.9m in March
2022. The investment was initially recognised at cost and has
subsequently been updated to reflect the Group's share of
post-acquisition losses (less than GBP0.1m) in accordance with the
equity method of accounting. The Group acquired a 25% shareholding
in the unscripted production company, Hello Mary, for consideration
of GBP0.6m in September 2021 with subsequent recognition of the
Group's accumulated share of the loss of GBP0.1m. The Group also
owns a 25% stake in Two Cities Television which has a carrying
value of GBP0.9m at both balance sheet dates. No dividends have
been received from any associate undertaking.
14. Deferred tax asset
At 31 December 2022, total deferred tax assets of GBP21.9m were
recognised on the balance sheet (31 December 2021: GBP26.5m). Of
this, GBP15.7m relates to the deficit on the Group's defined
benefit pension schemes (31 December 2021: GBP19.8m) and the
balance of GBP6.2m relates to tax losses, accelerated capital
allowances and short-term timing differences (31 December 2021:
GBP6.7m).
15. Borrowings
Since March 2021, the Group has had in place a GBP60m revolving
credit facility, with GBP20m accordion. The original tenor was 3
years, however two one-year extension options have been exercised
(in February 2022 and March 2023) with the facility now extending
to March 2026. Commercial terms are in line with the existing
facility and the covenant package also remains unchanged. Key
covenants are net debt to EBITDA (leverage) must be less than 3
times, and interest cover must be greater than 4 times.
16. Share capital
Number of Ordinary Share
shares (thousands) shares premium Total
GBPm GBPm GBPm
At 1 January 2022 and 31
December 2022 46,723 23.3 115.1 138.4
-------------------- --------- --------- --------
The total authorised number of ordinary shares is 63 million
shares (2021: 63 million shares) with a par value of GBP0.50 per
share (2021: GBP0.50 per share). All issued shares are fully
paid.
17. Notes to the consolidated statement of cash flows
2022 2021
GBPm GBPm
Operating profit 25.3 21.6
Adjustments for:
Depreciation and amortisation 4.8 5.3
Share based payments 0.8 0.5
Increase in inventories (29.3) (2.3)
Increase in trade and other receivables (excluding
STV ELM Ltd) (10.6) (2.3)
Increase in trade and other payables (excluding
STV ELM Ltd) 20.5 11.2
Net decrease in STV ELM Ltd working capital - 0.8
Cash generated by operations 11.5 34.8
------ -----
Net debt reconciliation
Net (debt)/cash
including
Cash and Net lease liabilities
Long-term cash equivalents (debt)/cash Lease
borrowings liabilities
GBPm GBPm GBPm GBPm GBPm
At 1 January 2022 (14.4) 14.7 0.3 (20.9) (20.6)
Cash flows (11.8) (3.4) (15.2) 1.8 (13.4)
Non-cash flows (i) (0.2) - (0.2) (0.5) (0.7)
At 31 December
2022 (26.4) 11.3 (15.1) (19.6) (34.7)
------------- ------------------- -------------- -------------- -------------------
(i) Non-cash movements relate to the amortisation of borrowing
costs (for long-term borrowings), the acquisition of right-of-use
assets and corresponding lease liabilities and lease interest.
Operating cash conversion, calculated as cash generated by
operations divided by operating profit and expressed as percentage
was 45% (2021: 161%).
18. Retirement benefit schemes
The Group operates two defined benefit pension schemes. The
schemes are trustee administered and the schemes' assets are held
independently from those of the Group. Pension costs are assessed
in accordance with the advice of an independent professionally
qualified actuary.
The schemes are the Scottish and Grampian Television Retirement
Benefit Scheme and the Caledonian Publishing Pension Scheme. Both
are closed schemes and accounted for under the projected unit
method.
Contribution rates to the scheme are determined by a qualified
independent actuary on the basis of a triennial valuation using the
projected unit method. The most recent triennial valuation was
carried out as at 31 December 2020. This valuation resulted in a
deficit of GBP116m on a pre-tax basis at 30 September 2021 compared
to GBP127.0m on a pre-tax basis at the previous settlement date of
28 February 2019. The next triennial valuation will take place as
at 31 December 2023.
Deficit recovery plans, which end on 31 October 2030, have been
agreed with aggregate monthly payments unchanged from the previous
recovery plans. The 2022 deficit recovery payments totalled
GBP9.5m, with annual payments then increasing at the rate of 2% per
annum over the term of the recovery plans. A contingent cash
mechanism is also in place, which triggers contingent funding
payments equivalent to 20% of any outperformance above a benchmark
of available cash to be paid to the schemes.
The recovery plans are designed to enable the schemes to reach a
fully funded position, using prudent assumptions about the future,
by 2030.
The fair value of the assets and the present value of the
liabilities in the Group's defined benefit pension schemes at each
balance sheet date was:
Assumptions used to estimate the scheme obligations
The significant actuarial assumptions used for accounting
purposes reflect prevailing market conditions in the UK and are as
follows:
2022 2021
% %
Rate of increase in salaries nil nil
Rate of increase of pensions in payment 3.45 3.55
Discount rate 4.85 1.90
Rate of price inflation (RPI) 3.45 3.55
Assumptions regarding future mortality experience are set based
on advice, published statistics and experience in each scheme and
are reflected in the table below (average life expectations of a
pensioner retiring at age 65).
2022 2021
Retiring at balance sheet date:
Male 20.9 21.0
Female 23.1 23.2
Retiring in 25 years
Male 22.1 22.3
Female 24.4 24.6
The fair value of the assets in the schemes and the present
value of the liabilities in the schemes at each balance sheet date
was:
At 31 December 2022 At 31 December 2021
Quoted Unquoted Total Quoted Unquoted Total
GBPm GBPm GBPm GBPm GBPm GBPm
Investment funds - 86.5 86.5 9.1 149.1 158.2
Debt instruments 151.5 6.0 157.5 201.9 26.5 228.4
Cash and cash equivalents 25.4 (4.0) 21.4 21.7 5.0 26.7
Derivatives - 9.7 9.7 - 7.1 7.1
Annuity policies - 14.7 14.7 - 19.6 19.6
-------- --------- ---------- -------- --------- ----------
Fair value of schemes' assets 176.9 112.9 289.8 232.7 207.3 440.0
-------- --------- ---------- -------- --------- ----------
Present value of defined benefit obligations (352.9) (519.4)
Deficit in the schemes (63.1) (79.4)
---------- ----------
Note, the prior year comparative has been updated to reflect
GBP7.5m of assets previously disclosed within unquoted investment
funds to unquoted derivatives to be consistent with current year
classification.
A related, offsetting deferred tax asset for the Group of
GBP15.7m (2021: GBP19.8m) is included within non-current assets.
Therefore, the pension scheme deficit net of deferred tax for the
Group was GBP47.4m at 31 December 2022 (2021: GBP59.6m).
19. Reconciliation of statutory results to adjusted results
In reporting financial information, the Group presents
alternative performance measures (APMs) which are not defined or
specified under the requirements of IFRS. The Group believes that
these APMs, which are not considered to be a substitute for or
superior to IFRS measures, provide stakeholders with additional
helpful information on the performance of the business.
The Group makes certain adjustments to the statutory profit
measures to exclude the effects of exceptional items and adjust for
other material amounts that it believes are distortive to the
underlying trading performance of the Group. By presenting these
alternative performance measures, the Group believes it is
providing additional insight into the performance of the business
that may be useful to stakeholders.
Below sets out a reconciliation of the statutory results to the
adjusted results:
2022 2021
Operating Profit Basic Operating Profit Basic
profit before earnings profit before earnings
GBPm tax GBPm per share GBPm tax GBPm per share
Pence Pence
Statutory result 25.3 22.2 38.3p 21.6 20.1 42.7p
Exceptional items
(note 6) 0.5 0.5 1.0p 1.7 0.8 1.1p
----------- ----------- ----------- ----------- ----------- -----------
Result for the
year before exceptional
items 25.8 22.7 39.3p 23.3 20.9 43.8p
IAS19 net finance
costs - 1.4 3.0p - 0.8 1.8p
High-End Television
tax credit - - - 1.9 1.9 -
----------- ----------- ----------- ----------- ----------- -----------
Adjusted result 25.8 24.1 42.3p 25.2 23.6 45.6p
----------- ----------- ----------- ----------- ----------- -----------
IAS19 related items, principally the net finance cost included
in the consolidated income statement, are excluded from
non-statutory measures as they are non-cash items that relate to
legacy defined benefit pension schemes.
The Group meets the eligibility criteria to claim HETV tax
relief through the production of certain dramas created in its
Studios division. This incentive was introduced in the UK to
support the creative industries and is a critical factor when
assessing the viability of investment decisions in the production
of high-end drama programmes. These production tax credits are
reported within the total tax charge in the Consolidated Income
Statement in accordance with IAS 12. However, STV considers the
HETV tax credits to be a contribution to production costs and
therefore more aligned to working capital in nature. Therefore, the
adjusted results for the Group reflect these credits as a
contribution to operating cost and not a tax item. There were no
HETV tax credits claimed in the current year.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR SSFEEMEDSEFD
(END) Dow Jones Newswires
March 07, 2023 02:00 ET (07:00 GMT)
Stv (AQSE:STVG.GB)
Historical Stock Chart
From Apr 2024 to May 2024
Stv (AQSE:STVG.GB)
Historical Stock Chart
From May 2023 to May 2024
