RNS Number:4759L
Scottish Radio Holdings PLC
23 May 2003
23 May 2003
Scottish Radio Holdings plc
Interim Results for half year to 31 March 2003
Financial Highlights
- Turnover from continuing operations up 28% to #41.5m (2002: #32.4m) with
like-for-like revenues up to 7%
- EBITDA* from continuing operations up 38% to #10.8m (2002: #7.8m)
- Group operating profit** from continuing operations up 41% to #9.6m (2002:
#6.8m)
- Adjusted earnings per share up 56% to 18.9p (2002: 12.1p)
- Interim dividend lifted 8% from 6.0p to 6.5p
- Net borrowings of #36.2m representing gearing of 31%
* Earnings before interest, tax, depreciation and amortisation
** Excluding goodwill amortisation under FRS 10
Operational Highlights
- Radio - revenues up 33% from continuing operations
- Press - revenues up 21% from continuing operations
- Five digital multiplexes now operational
- Strong start to trading in the second half
Commenting on the results, SRH Chairman, Lord Gordon of Strathblane CBE, said:
"The strong first half growth in revenues and operating profits in both radio
and publishing is extremely encouraging. SRH is well placed for continued growth
with its market leading radio companies in recognised geographical marketing
areas and well-established local press titles. Trading in the second half has
also started strongly, underpinning the Board's expectation of a good result for
the year as a whole".
For further information please contact:
Scottish Radio Holdings plc Today: 020 7597 5870
Richard Findlay, Chief Executive Thereafter: 0141 565 2202
Alan Wilson, Finance Director 0141 565 2242
Gavin Anderson & Company
Byron Ousey / Lindsey Harrison 020 7554 1400
Interim Report for half year to 31 March 2003
Operations Review
The first half of the current financial year has seen good growth in turnover
and operating profits. Group revenues from continuing operations were 28% up, a
robust performance in a difficult market.
Profit, from continuing operations, as measured by EBITDA rose by 38% to #10.8
million (2002: #7.8 million) with group operating profit, before amortisation of
goodwill, up by 41% from #6.8 million to #9.6 million. The table below shows
that profit before exceptionals and goodwill increased by 51% from #5.7 million
to #8.6 million.
The operating profit margin from radio and press in the half year rose from
27.4% to 28.6%, before amortisation of goodwill.
In view of the group's good performance in the first half of the financial year,
the Board has increased the interim dividend by 8% to 6.5 pence per share.
The interim dividend will be paid on 1 July 2003 to shareholders on the register
on 6 June 2003. The ex-dividend date is 4 June 2003.
Analysis of Group Profitability
The following table analyses the group's results for the period by business
activity.
Turnover Profit** Operating margin
Half year to 31 2003 2002 2003 2002 2003 2002
March
#m #m #m #m % %
Analogue Radio 24.4 18.3 6.8 5.1 27.9 27.9
Score Press 16.2 13.4 4.8 3.6 29.6 26.9
------- ---------- -------- ---------
Sub total 40.6 31.7 11.6 8.7 28.6 27.4
Score Outdoor * - 7.0 - (1.3) - (18.6)
Digital & 0.9 0.7 (0.6) (0.6)
Internet
Central Costs - - (1.2) (1.0)
Group turnover 41.5 39.4
Profit before
interest,
exceptionals and
goodwill 9.8 5.8 23.6 14.7
Net interest
payable and
similar charges (1.2) (0.1)
Profit before
exceptionals and
goodwill 8.6 5.7
* disposed of 25 July 2002
** before exceptionals and goodwill
Analogue Radio
The most recent RAJAR audience research results for the three months to March
were published on 8 May and again confirmed that the group's local radio
companies provide the most popular radio services in the areas which they serve.
The latest figures confirm that SRH stations combined achieve a higher reach and
market share than other groups deliver on a comparable basis across their
transmission areas. Our stations are shown to have a 44% reach and a market
share of 23.4% within their total coverage area. Across the whole of Scotland
survey area, SRH stations combine to enjoy a 51% reach, and market share of
31.9%; in Northern Ireland, SRH stations have a 49% reach and market share of
25.1%.
Today FM continues to be a strong success story in the Republic of Ireland. In
the latest Irish JNLR audience survey, listenership increased by 55,000 (6%) on
the same period last year to an all-time high of 995,000 listeners every week.
Including Today FM, our radio services now have 4,123,000 listeners, up 2% from
the previous year.
Radio, our largest operating division, performed well in the six months with
like-for-like local and national advertising revenues rising 3% and 8%
respectively against the previous half year. In the six months, local
advertising revenue accounted for 53% on a like-for-like basis (last year 53%)
of total radio advertising revenue. The strong listener appeal which SRH
stations enjoy in their markets, together with the group's balanced exposure to
local and national advertising, position the group well for the future.
Like-for-like radio broadcast revenues for the six months to 31 March 2003 were
up 5% on last year, including an increase of 3% in sponsorship and promotions
income. This was in spite of increased competitive efforts by other radio and
television operators in SRH's key markets and the well reported difficulties in
the market place, especially the general weakness in national advertising
experienced across the UK.
Including acquisitions, radio broadcast revenues were 33% ahead of the same
period last year. The operating profit margin from analogue radio activities in
the half year was 27.9% (2002: 27.9%).
After the half year, SRH formed River Records Ltd, a wholly-owned subsidiary to
which it transferred the exploitation rights to its vast archive of music and
other recordings made by its radio stations over the years. Within the archive
are some 600 unique 'live' concert recordings rarely heard before. The company
has negotiated an arrangement with Universal Music Group, one of the larger of
the record companies with artists on its roster at the time the recordings were
made, that allows both Universal and River itself to release these recordings on
CD subject to artists' and any other necessary permissions.
In November 2002, the Department of Culture, Media and Sport and the Department
of Trade and Industry announced that the Bill being presented before Parliament
allowed for a minimum of two commercial owners plus the BBC in major markets and
at least three different media separately owned in each defined local market.
The Bill emphasises the importance of local stations being local and is
reflective of our approach in this area in that we deliberately devolve as much
responsibility and decision-making to local management as is possible and
practical.
SRH has 23 wholly and partly-owned radio services and operates 5 digital radio
multiplexes in the UK and the Republic of Ireland.
Score Press
The Score Press division has continued to develop successfully and publishes 43
local weekly newspaper titles of which 15 titles are in Scotland, 23 in Northern
Ireland and 5 in the Republic of Ireland.
The division enjoyed the benefit of a favourable Euro exchange rate; and
like-for-like revenues rose by 8% compared with the corresponding six month
period of the previous year. Advertising revenues, on a like-for-like basis,
increased by 9% with circulation revenues up 7% and other income 5% ahead of
last year. Like-for-like trading for the division, in constant currency terms,
showed an increase of 3% with a 6% rise in advertising revenues and circulation
revenues and other income (mainly from printing contracts) at a similar level to
last year.
Including acquisitions, press revenues for the six months to 31 March 2003 were
21% ahead of the same period last year. The operating profit margin from the
Score Press division for the half year was 29.6% (2002: 26.9%).
In September 2002, we acquired the Galloway Gazette and Stornoway Gazette and
the printing presses at the two companies are now closed. In both cases the
companies have transferred their printing to our Forfar plant and for the first
time are now able to offer colour. The division is focused on three print
centres: in the Republic of Ireland, Northern Ireland and Scotland.
Digital and Internet
Net expenditure on digital radio and internet operations for the period was held
to #0.6 million (2002: #0.6 million).
The Score Digital radio multiplexes serve Glasgow, Edinburgh, Ayr, Dundee and
Northern Ireland and we have also been awarded the licence for Inverness.
The group's radio station websites continue to attract significant interest,
especially the www.superscoreboard.net reflecting the popularity of live audio
coverage of major Scottish and European football matches, football phone-ins and
fans' forums.
The group expects to commit modest further resources to ensure continued
progress in this area.
FINANCIAL REVIEW
Adjusted Earnings Per Share
Adjusted earnings for the half year were #6.3 million, compared with #4.0
million for the previous half year. Adjusted earnings per share (used in order
to obtain a better understanding of the underlying business) were 18.9p compared
with 12.1p for the same period last year.
Financial Position
SRH started the year with net assets of #110.2m and at 31 March 2003 net assets
amounted to #117.1m. The group had borrowings as at 31 March 2003 of #36.2
million (gearing of 31%) made up of net overdraft of #14.0 million plus the
value of loan notes issued in 2000 in connection with the acquisition of
Kilkenny People Holdings. The group has a revolving credit facility of #60
million. In view of the strong cash generative ability of the group, SRH is in a
sound financial position and also well placed to take advantage of opportunities
in the market place.
Current Trading and Outlook
SRH is well-placed, with its market-leading radio companies in recognisable
geographical marketing areas, and solid press titles. The strong growth in
operating profits experienced in both radio and publishing during the first half
is extremely encouraging. Trading in the second half has also started well,
underpinning the Board's expectation of a good result for the year as a whole.
Responsibility for Interim Report
The interim report for the six months ended 31 March 2003 was approved by the
directors on 23 May 2003. The interim report is unaudited but has been reviewed
by the auditors, KPMG Audit Plc, and their report is set out on page 16.
Directors
Lord Gordon of Strathblane CBE (Chairman)
Hamish Grossart (Deputy Chairman)
Richard Findlay (Chief Executive)
Alan Wilson (Finance Director)
David Goode (Managing Director, Radio)
Sunny Crouch
Andy Irvine MBE
John McColgan
Jamie Matheson
Sandy Orr
23 May 2003
Unaudited Group Profit and Loss Account
for half year to 31 March 2003
Unaudited six Unaudited six months ended 31 March 2002 Audited
months ended year ended
31 March 2003 30 Sept 2002
Notes Continuing Continuing Discontinued
operations operations operations Total
#m #m #m #m #m
Turnover
Group and share of
joint venture 42.3 32.4 7.0 39.4 83.5
--------- ------- -------- ------- ------
Less share of joint
venture turnover (0.8) - - - -
--------- -------- -------- ------- -------
Group turnover 3 41.5 32.4 7.0 39.4 83.5
--------- -------- -------- ------- -------
EBITDA 10.8 7.8 (1.0) 6.8 16.8
Depreciation (1.2) (1.0) (0.3) (1.3) (2.7)
--------- -------- -------- ------- -------
EBITA 9.6 6.8 (1.3) 5.5 14.1
Goodwill amortisation (2.3) (0.9) (1.4) (2.3) (5.1)
--------- -------- -------- ------- -------
Group operating profit 7.3 5.9 (2.7) 3.2 9.0
Share of operating 0.1 - - - -
profits of joint venture
Share of operating
profits of associated undertakings - 0.2 - 0.2 0.2
--------- -------- -------- ------- -------
Total operating profit 7.4 6.1 (2.7) 3.4 9.2
(Loss) on disposal
of subsidiaries - - - - (21.2)
Gain on sale of
tangible fixed assets 0.6 - - - -
Income from investments 0.1 0.1 - - 0.2
--------- -------- -------- ------- -------
Profit/(loss) on 8.1 6.2 (2.7) 3.5 (11.8)
ordinary activities
before interest
Net interest payable 4 (1.2) (0.1) (1.7)
and similar --------- -------- -------- ------- -------
charges
Profit/(loss) on
ordinary activities
before
taxation 6.9 3.4 (13.5)
Taxation 5 (2.3) (1.7) (3.0)
--------- -------- -------- ------- -------
Profit/(loss) for 4.6 1.7 (16.5)
the financial
period
Dividends paid and 9 (2.2) (2.0) (6.0)
proposed --------- -------- -------- ------- -------
Retained profit/ 2.4 (0.3) (22.5)
(loss) for the ========= ======== ======== ======= =======
financial period
Earnings/(loss) per 6 13.8 5.1 (49.7)
share (pence)
Diluted earnings/ 7 13.8 5.1 (49.7)
(loss) per share
(pence)
Adjusted earnings 8 18.9 12.1 29.5
per share (pence)
Dividends per share 9 6.5 6.0 18.0
(pence)
Unaudited Group Statement of Total Recognised Gains and Losses
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 March 2003 31 March 2002 30 Sept 2002
#m #m #m
Profit/(loss) for the 4.6 1.7 (16.5)
financial period
Currency differences on
translation of the group's net
investments in overseas
subsidiaries 6.2 (0.1) 0.1
---------- ---------- ---------
Currency differences on
translation of currency
borrowings hedging overseas
investments (1.8) 0.1 (0.1)
=========== ========== =========
Total recognised gains/ 9.0 1.7 (16.5)
(losses) for the financial =========== ========== =========
period
Unaudited Group Balance Sheet as at 31 March 2003
Unaudited Unaudited Audited
as at as at as at
31 March 2003 31 March 2002 30 Sept 2002
Notes #m #m #m
Fixed Assets
Intangible assets 10 116.3 122.0 112.9
Tangible assets 11 15.9 18.3 15.2
Investments:
Net investment in 12 18.1 - 18.5
Joint Venture
Other investments 1.1 7.3 1.1
----------- ---------- ---------
151.4 147.6 147.7
Current Assets
Stocks 0.5 0.3 0.5
Debtors 18.2 18.9 17.6
Cash at bank and in 13.0 5.8 10.0
hand ----------- ---------- ---------
31.7 25.0 28.1
Creditors
Amounts falling due (63.6) (40.0) (63.1)
within one year ----------- ---------- ---------
Net Current (31.9) (15.0) (35.0)
Liabilities ----------- ---------- ---------
Total Assets less 119.5 132.6 112.7
Current Liabilities
Creditors
Amounts falling due (1.9) (1.0) (1.9)
after more than one
year
Provisions for (0.5) (1.2) (0.6)
Liabilities and ----------- ---------- ---------
Charges
Net assets 117.1 130.4 110.2
=========== ========== =========
Capital and Reserves
Called up share 13 3.3 3.3 3.3
capital
Share premium 14 77.7 77.5 77.6
account
Revaluation reserve 14 0.9 0.9 0.9
Special capital 14 1.1 1.1 1.1
reserve
Merger reserve 14 20.5 20.8 20.5
Profit and loss 14 13.6 26.8 6.8
account =========== ========== =========
Shareholders' funds - 14 117.1 130.4 110.2
equity =========== ========== =========
Unaudited Group Cash Flow Statement as at 31 March 2003
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 March 2003 31 March 2002 30 Sept 2002
Notes #m #m #m
Group operating 7.3 3.2 9.0
profit
Depreciation and 3.5 3.6 7.8
amortisation ----------- ---------- ---------
EBITDA 10.8 6.8 16.8
----------- ---------- ---------
Change in working
capital and non-cash
movements 0.4 5.5 (1.6)
----------- ---------- ---------
Net cash inflow from 11.2 12.3 15.2
operating activities
Returns on investments
and servicing of
finance
Interest received 0.1 0.3 0.2
Interest paid (1.3) ( 0.5) ( 1.7)
Income from 0.3 0.3 0.2
investments ----------- ---------- ---------
Net cash (outflow)/
inflow from returns on
investments and
servicing of finance (0.9) 0.1 (1.3)
Taxation
UK corporation tax (1.3) (2.0) (4.2)
paid
Capital expenditure
and financial
investment
Purchase of tangible 11 (2.3) (2.0) (3.8)
fixed assets
Proceeds on sale of 1.2 0.2 -
tangible fixed
assets
Capital contribution - (4.2) -
to Today FM (Radio
Ireland Ltd)
Investment in Kingdom - (1.0) (1.0)
FM ----------- ---------- ---------
Net cash (outflow) on
capital expenditure
and financial
investment (1.1) (7.0) (4.8)
Acquisitions and
disposals
Net cash (outflow) on - (23.6) (60.9)
acquisitions
Net cash inflow on - - 32.4
sale of Outdoor
division
Investment in Vibe - - (18.5)
Radio Services Ltd ----------- ---------- ---------
- (23.6) (47.0)
Equity dividends (4.0) (3.8) (5.8)
paid ----------- ---------- ---------
Net cash inflow/ 3.9 (24.0) (47.9)
(outflow) before
financing
Financing
Proceeds from issue of 0.1 - 0.1
ordinary share
capital
Repayment of loan - (1.2) (1.2)
notes ----------- ---------- ---------
Net cash inflow/ 0.1 (1.2) (1.1)
(outflow) from ----------- ---------- ---------
financing activities
Increase/(decrease) in 4.0 (25.2) (49.0)
cash in the period =========== ========== =========
Change in working capital and non-cash movements
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 March 2003 31 March 2002 30 Sept 2002
#m #m #m
(Increase) in stock - - (0.2)
(Increase)/decrease in (0.8) (0.2) 0.8
debtors
Increase/(decrease) in 1.2 5.7 (2.4)
creditors and provisions
Loss on disposal of tangible - - 0.2
fixed assets ----------- ----------- -----------
Change in working capital and 0.4 5.5 (1.6)
non-cash movements =========== =========== ===========
Reconciliation of net cash
flow to movement in net (debt)
/funds
Increase/(decrease) in cash in 4.0 (25.2) (49.0)
the period
Cash outflow from repayment of - 1.2 1.2
loan notes ----------- ----------- -----------
Change in net funds/(debt) 4.0 (24.0) (47.8)
resulting from cash flows
Foreign exchange adjustment (1.8) 0.1 (0.3)
----------- ----------- -----------
Movement in net funds/(debt) 2.2 (23.9) (48.1)
in the period
Opening net (debt)/funds (38.4) 9.7 9.7
----------- ----------- -----------
Closing net debt (36.2) (14.2) (38.4)
=========== =========== ===========
Analysis of changes in Foreign
net debt At 30 Sept Cash Exchange At 31 March
2002 Flow movements 2003
#m #m #m #m
Cash at bank and in 10.0 3.0 - 13.0
hand
Bank overdraft (28.0) 1.0 - (27.0)
-------- ------ -------- ---------
(18.0) 4.0 - (14.0)
Debts due within one year (0.1) - - (0.1)
- finance leases/HP
contracts
Loans due within one year (20.3) - (1.8) (22.1)
- loan notes -------- ------ -------- ---------
Total (38.4) 4.0 (1.8) (36.2)
-------- ------ -------- ---------
Notes
1. Accounting policies
The interim financial information has been prepared on the basis of the
accounting policies set out in the most recent set of annual financial
statements for the year ended 30 September 2002 (these policies are detailed on
pages 40 and 41 of the SRH Annual Report 2002). In relation to application of
the group's accounting policy on foreign exchange, the re-translation of the
group's net investment in overseas subsidiaries to closing rates of exchange has
been extended to include goodwill and intangible assets; previously such items
were held in the group balance sheet at their historical rate of exchange. These
re-translation differences, together with differences on the re-translation of
foreign currency borrowings hedging such net investments, are dealt with through
reserves and are reflected in the group statement of total recognised gains and
losses. Previously, an element of the foreign exchange movement on the
re-translation of foreign currency borrowings was reflected in the group profit
and loss account. The directors consider the revised presentation in relation to
the re-translation of the group's net investment in overseas subsidiaries, and
the associated borrowings, more appropriately reflects the underlying linkage
between these investments and the associated hedging arrangements. Prior period
comparatives are not adjusted as the effect thereon is insignificant (see Note
14).
2. Analysis of turnover and profit
Unaudited Unaudited Audited
Six months to Six months to Year ended
31 March 31 March 30 Sept
2003 2002 2002
#m #m #m
Turnover 41.5 39.4 83.5
========== ========== ===========
Purchase of raw materials (2.6) (2.3) (4.6)
Staff costs (12.1) (11.4) (23.5)
Other operating charges (16.0) (18.9) (38.6)
---------- ---------- -----------
(30.7) (32.6) (66.7)
---------- ---------- -----------
EBITDA 10.8 6.8 16.8
Depreciation (1.2) (1.3) (2.7)
---------- ---------- -----------
EBITA 9.6 5.5 14.1
Goodwill amortisation (2.3) (2.3) (5.1)
---------- ---------- -----------
Group operating profit 7.3 3.2 9.0
========== ========== ===========
3. Segmental information
Unaudited Unaudited Audited
Six months to Six months to Year Ended
31 March 2003 31 March 2002 30 Sept 2002
Turnover #m #m #m
Analogue Radio
Group and share of joint 25.2 18.3 41.3
venture
Less share of joint venture (0.8) - -
----------- ----------- ------------
Continuing operations 24.4 18.3 41.3
Score Press
Continuing operations 16.2 13.4 27.6
----------- ----------- ------------
Sub-total 40.6 31.7 68.9
Score Outdoor
Discontinued operations - 7.0 13.0
Digital & Internet 0.9 0.7 1.6
----------- ----------- ------------
Total turnover 41.5 39.4 83.5
=========== =========== ============
Profit on ordinary activities before interest and goodwill
Analogue Radio
Group and share of joint venture 6.9 5.1 11.2
Less share of joint venture (0.1) - -
----------- ----------- ------------
Continuing operations 6.8 5.1 11.2
Score Press
Continuing operations 4.8 3.6 7.4
----------- ----------- ------------
Sub-total 11.6 8.7 18.6
Score Outdoor
Discontinued operations - (1.3) (1.0)
Digital & Internet (0.6) (0.6) (1.1)
Central costs (1.2) (1.0) (2.0)
(Loss) on disposal of subsidiaries - - (21.2)
Gain on sale of tangible fixed assets 0.6 - -
----------- ----------- ------------
Profit before interest and goodwill 10.4 5.8 (6.7)
----------- ----------- ------------
4. Net interest payable and similar charges
Unaudited Unaudited Audited
Six months to Six months to Year Ended
31 March 2003 31 March 2002 30 Sept 2002
#m #m #m
Bank interest payable (0.9) (0.1) (0.9)
Loan note interest payable (0.4) (0.4) (0.8)
------------ ----------- ----------
Total interest payable (1.3) (0.5) (1.7)
Bank interest receivable 0.1 0.3 0.2
------------ ----------- ----------
Net interest payable (1.2) (0.2) (1.5)
Foreign exchange gain/(loss) - 0.1 (0.2)
------------ ----------- ----------
Net interest payable and other (1.2) (0.1) (1.7)
similar charges ============ =========== ==========
5. Taxation
The total effective tax charge for the six months to 31 March 2003 on profits,
before goodwill amortisation, was 25% (2002 - 29%).
6. Earnings/(loss) per share
Unaudited Unaudited Audited
Six months to Six months to Year Ended
31 March 2003 31 March 2002 30 Sept 2002
Basic earnings/(loss) per
share are calculated as
follows:
Profit/(loss) for the #4.6m #1.7m (#16.5m)
financial period
Weighted average number of 33,325,027 33,045,834 33,178,567
shares in issue
Basic earnings/(loss) per 13.8p 5.1p (49.7)p
share
Details of shares issued during the year are given in Note 13.
7. Diluted earnings/(loss) per share
Diluted earnings/(loss) per share are calculated using the earnings explained in
Note 6 but divided by the weighted average number of shares in issue and ranking
for dividend for the half year ended 31 March 2003 plus all outstanding relevant
share options at that date.
Diluted earnings/(loss) per share are calculated as follows:
Unaudited Unaudited Audited
Six months to Six months to Year Ended
31 March 2003 31 March 2002 30 Sept 2002
Profit/(loss) for the #4.6m #1.7m (#16.5m)
financial period ("Basic
earnings")
Weighted average number of 33,325,027 33,045,834 33,178,567
shares in issue
Effect of dilutive share 47,741 - -
options
Diluted weighted average 33,372,768 33,045,834 33,178,567
number of shares ----------- ----------- ---------
Diluted earnings/(loss) per 13.8p 5.1p (49.7)p
share
8. Adjusted earnings per share
Adjusted earnings per share are shown in order to enable a better understanding
of the underlying business.
Adjusted earnings per share are calculated using the same number of shares as
explained in Note 6 but are calculated on the profit/(loss) for the financial
period excluding goodwill amortisation and gain/(loss) on disposal of tangible
fixed assets or subsidiaries.
Adjusted earnings per share Unaudited Unaudited Audited
are calculated as follows: Six months to Six months to Year Ended
31 March 2003 31 March 2002 30 Sept 2002
#m #m #m
Profit/(loss) for the 4.6 1.7 (16.5)
financial period ("Basic
earnings")
Add back goodwill 2.3 2.3 5.1
amortisation
Deduct gain on sale of (0.6) - -
tangible fixed assets
Add loss on disposal of - - 21.2
subsidiaries ----------- ----------- ---------
Adjusted profit for the
financial period ("Adjusted
earnings") 6.3 4.0 9.8
----------- ----------- ---------
Weighted average number of 33,325,027 33,045,834 33,178,567
shares in issue
Adjusted earnings per share 18.9p 12.1p 29.5p
9. Interim dividend
The interim dividend has been calculated as Unaudited Unaudited
follows:
Six months to Six months to
31 March 31 March
2003 2002
Number of shares in issue (on 23 May 2003) 33,347,527 33,312,527
Interim dividend per share 6.5p 6.0p
Cost of interim dividend #2.2m #2.0m
10. Intangible fixed assets
(a) Purchased Goodwill
Analogue Score Total
Radio Press #m
Cost #m #m
At beginning of period 75.1 - 75.1
Adjustment to goodwill: Today FM (0.4) - ( 0.4)
Currency translation movement 3.3 - 3.3
=========== ========= =========
At 31 March 2003 78.0 - 78.0
=========== ========= =========
Amortisation
At beginning of period 9.2 - 9.2
Charge for period 1.8 - 1.8
============ ========= =========
-
At 31 March 2003 11.0 11.0
============ ========= =========
Net book value
At 31 March 2003 67.0 - 67.0
============ ========= =========
At beginning of period 65.9 - 65.9
============ ========= =========
(b) ther intangible assets - newspaper titles
At beginning of period - 47.0 47.0
Fair value adjustments - (0.3) (0.3)
Currency translation movement - 2.6 2.6
------------ --------- ---------
At 31 March 2003 - 49.3 49.3
============ ========= =========
============ ========= =========
Total intangible fixed assets at 31 March
2003 67.0 49.3 116.3
============ ========= =========
============ ========= =========
Total intangible assets at beginning of
period 65.9 47.0 112.9
============ ========= =========
11. Tangible Fixed Assets
Analogue Score
Radio Press Total
#m #m #m
Cost or valuation
At beginning of period 19.5 16.2 35.7
Currency translation movement - 0.2 0.2
Additions 1.4 0.9 2.3
Disposals (0.6) (0.4) (1.0)
------------ --------- ---------
At 31 March 2003 20.3 16.9 37.2
------------ --------- ---------
Depreciation
At beginning of period 11.7 8.8 20.5
Disposals (0.1) (0.3) (0.4)
Charge for period 0.7 0.5 1.2
------------ --------- ---------
At 31 March 2003 12.3 9.0 21.3
------------ --------- ---------
============ ========= =========
Net book value
At 31 March 2003 8.0 7.9 15.9
============ ========= =========
At beginning of period 7.8 7.4 15.2
============ ========= =========
12. Investment in joint venture
The joint venture represents the group's 51% interest in Vibe Radio Services
Limited which owns and operates the Vibe FM and Vibe 101 radio stations.
13. Share capital: ordinary shares of 10p each
Unaudited Unaudited
Six months to Six months to
31 March 2003 31 March 2002
Number of 10p Number of 10p
shares shares
Authorised share capital 38,250,000 38,250,000
------------ -----------
At beginning of period 33,312,527 33,044,561
Issued pursuant to the 1985 Executive Share 15,000 -
Option Scheme
Issued pursuant to the 1998 Executive Share 20,000 4,000
Option Scheme
Issued pursuant to acquisitions - 7,270
------------ -----------
At 31 March 2003 33,347,527 33,055,831
------------ -----------
Weighted average number of shares in issue
in respect of the six month period 33,325,027 33,045,834
14. Movement in shareholders' funds
Called up Share Profit and
share premium Revaluation Special capital Merger loss
capital account reserve reserve reserve account Total
Group #m #m #m #m #m #m #m
At beginning 3.3 77.6 0.9 1.1 20.5 6.8 110.2
of period
Shares issued - 0.1 - - - - 0.1
for cash
Net currency
translation
movement
relating to
translation
of overseas
subsidiaries:
- current period - - - - - 4.2 4.2
- prior periods - - - - - 0.2 0.2
Profit for
the financial
period - - - - - 4.6 4.6
------- ------- -------- --------- ------ ------- ------
Dividends - - - - - (2.2) (2.2)
paid and ------- ------- -------- --------- ------ ------- ------
proposed
At 31 March 3.3 77.7 0.9 1.1 20.5 13.6 117.1
2003 ------- ------- -------- --------- ------ ------- ------
15. Post balance sheet events
At Note 12, reference is made to the joint venture company, Vibe Radio Services
Limited ("VRS"), which is 51% owned by Scottish Radio Holdings plc. The
remaining 49% of VRS is owned by GWR Group plc.
On 13 January 2003 the Secretary of State referred to the Competition
Commission, for investigation and report by 14 April 2003, the following
questions relating to the Vibe 101 (formerly Galaxy 101) part of the
acquisition:
(i) whether a merger situation qualifying for investigation has been created;
and
(ii) if so, whether the creation of that situation operates, or may be expected
to operate, against the public interest. The Commission's view was that a
merger situation qualifying for investigation existed between GWR and Vibe
(Galaxy) 101, but that no merger situation qualifying for investigation
existed between SRH and Vibe (Galaxy) 101.
On 16 May 2003, the Competition Minister announced that she had concluded that
the merger may be expected to operate against the public interest. As a result,
she invited the Office of Fair Trading to negotiate with the parties to secure
undertakings to remedy the adverse competitive effects of the merger. On 22 May
2003, it was announced that SRH had reached agreement to purchase for cash
consideration of #17.64 million GWR's 49% interest in Vibe Radio Services.
16. Full accounts
The preceding financial information does not constitute statutory accounts as
defined in Section 240 of the Companies Act 1985. The comparative financial
information, for the financial year ended 30 September 2002, is extracted from
the statutory accounts for the financial year ended 30 September 2002. Those
accounts, upon which the auditors have issued an unqualified opinion, have been
delivered to the Registrar of Companies.
17. Copies of interim report
Copies of this interim report are being sent to all shareholders and are also
available from the company's Registered Office, Clydebank Business Park,
Clydebank, Glasgow, G81 2RX, and on the company's website.
18. Further information
The company's website may be visited at www.srhplc.com
Announcements made by listed companies may be accessed through
moneyworld.uk-wire.com
Share prices of listed companies may be accessed through
www.prices.londonstockexchange.com
REVIEW REPORT
Independent review report by KPMG Audit Plc to Scottish Radio Holdings plc
Introduction
We have been engaged by the company to review the financial information set out
on pages 6 to 15 and we have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the company for
our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules which require that the accounting policies and presentation applied to the
interim figures should be consistent with those applied in preparing the
preceding annual accounts, except where they are to be changed in the next
annual accounts, in which case any changes, and the reasons for them, are to be
disclosed.
Review work performed
We conducted our review in accordance with guidance contained in "Bulletin 1999/
4: Review of interim financial information" issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review is substantially less
in scope than an audit performed in accordance with Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do
not express an audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 31 March 2003.
KPMG Audit Plc
Chartered Accountants
24 Blythswood Square
Glasgow
G2 4QS
23 May 2003
Financial Calendar
Announcement of full year results for 2002
21 November 2002
Accounts posted
20 December 2002
Annual General Meeting
27 January 2003
Announcement of half year results
23 May 2003
Interim dividend payable
1 July 2003
Financial year end
30 September 2003
Announcement of full year results for 2003
November 2003
FINANCIAL CONTACTS
Chairman, Lord Gordon of Strathblane CBE
Telephone: 0141 565 2202 / Fax: 0141 565 2322
Chief Executive, Richard Findlay
Telephone: 0141 565 2202 / Fax: 0141 565 2322
Finance Director, Alan Wilson
Telephone: 0141 565 2242 / Fax: 0141 565 2323
Company Secretary, Jane E A Tames
Telephone: 0141 565 2358 / Fax: 0141 565 2341
Joint Brokers, Investec Henderson Crosthwaite
Telephone: 020 7597 5970 / Fax: 020 7597 5120
Joint Brokers, Bell Lawrie White
Telephone: 0141 221 7733 / Fax: 0141 221 7706
Registrars, Computershare Investor Services plc
Telephone: 0870 702 0010 / Fax: 0131 442 4924
This information is provided by RNS
The company news service from the London Stock Exchange
END
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