Scottish Radio profits down 20%

SCOTTISH Radio Holdings, the media group that owns Today FM, said yesterday that full year profits had fallen by nearly 20%.

The company did not strip out the figures of its extensive Irish operations from the group, but said its radio interest here had performed well during the period.

Scottish Radio recently announced it has acquired Dublin commercial station FM104 for 26 million. The deal is waiting on the approval of Tánaiste Mary Harney and the takeover is currently being investigated by the Competition Authority. This investigation is expected to take several months. While Today FM is a national station, it and FM104 are both based in Dublin and have significant market shares in the city.

Glasgow-based SRH posted a pre-tax profits of £11.8 million, compared with a £13.5m loss for the previous year. Turnover from continuing operations, excluding acquisitions during the year, grew by 18% from £70.5m to £83m.

The company said it has benefited from the strength of the local advertising market in Ireland and Britain in both radio and newspaper publishing.

SRH owns five newspaper in Ireland, including the Kilkenny People.

Revenues in the company's press division, which includes the Kilkenny People, rose 17% to £32.3m, while its radio arm, including Today FM saw revenues climb 19% to £49.2m.

Adjusted earnings per share rose by 26% to 37.2p while the final dividend will be increased to 13p. This brings the total dividend for the year to 19.5p, an increase of 8% on last year.

The company said: “SRH is well-placed for continuing organic growth, with its balanced portfolio of market-leading radio companies clustered in recognisable geographical marketing areas, and solid press titles.”

The strong performance in 2003 has continued, it said, with revenues for the first two months of the new financial year showing an increase in like-for-like radio revenues of 9% and press revenues up by around 3%.

The shares closed up nearly 4% yesterday at 840p.

The company is expected to be on the acquisition trail again soon, according to brokers.

The company is geared at just 44% with borrowings of £51 million at the end of its financial year. It spent over £17 million on acquisitions during the 12 months.