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29 Aug 2008 07:00
UBC Media Group plc
("UBC" or "the Company")
AGM Statement
At the Annual General Meeting of UBC Media Group plc to be held in London at 11.00am today, the Chairman John Hodson, will update shareholders on his comments made at the time of the Company's preliminary announcement in June, saying that:
"I said at the time of our preliminary announcement in June that the next few months would see profound changes at UBC and in the radio industry as a whole. We are now amidst those changes, which are taking place against the backdrop of a challenging economic climate. However, I am pleased to say that we are making the strategic progress outlined in June, on schedule.
We expect to complete the sale of our Commercial division to Global Traffic Networks Inc. (GTN) before the end of October. Under the terms of the Letter Of Intent signed with GTN, we expect them to pay a cash sum of £11 million on completion and UBC can earn a further £5.5 million in cash depending on the performance of the division in the twelve months thereafter.
Along with much of UK media, trading in the Commercial division has been disappointing in the first four months of the current financial year, with turnover down by 15% on the same period last year.
Following the sale, UBC will consist of its Production and Interactive divisions. Trading in these divisions in the first four months has been more encouraging and is marginally ahead of budget.
As already announced, UBC's Cliq music downloading service has now been re-focused as a business-to-business service and integrated within the Interactive division. The Company expects Cliq to be available before Christmas on Wi-Fi connected radios.
In anticipation of the completion of the sale we are also reviewing the central overhead of the Company so that it is appropriate for what will be a significantly changed business in the future. We have identified annual savings of approximately £300,000 and will be outlining these in more detail following the signing of a Definitive Agreement with GTN, which we expect to be at the end of September.
These are challenging times but I believe that UBC has taken the right steps to ensure that it is well placed to deliver future value for shareholders".
Enquiries:
Simon Cole, Chief Executive, UBC Media Group plc Tel: 020 7453 1600
Mark Percy, Sarah Jacobs, Seymour Pierce Tel: 020 7107 8000
Notes to Editors
About UBC Media Group
UBC is quoted on the London Stock Exchange's AIM Market. UBC is the market leader in the supply of audio content to the radio industry in the UK. In addition to the entertainment, traffic & travel and national news services provided to commercial radio, the Group is the largest independent producer of radio programming for the BBC. It is part of the MXR Regional Multiplex and the 4Digital National multiplex consortium.
www.ubcmedia.com
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