Last checked at 29 Jul 2016 10:00
29 July 2016
Catalyst Media Group plc
("CMG" or the "Company")
Dividend approved by SIS
The Board of CMG is pleased to announce that Satellite Information Services (Holdings) Limited ("SIS"), in which CMG is a 20.54% shareholder, has today made the following statement to its shareholders regarding the approval of a dividend to shareholders of £20.0 million:
"Following the progress made on securing the long term low margin business model and diversification strategy over the past 18 months the Board of Satellite Information Services (Holdings) Limited ("SIS") has approved a dividend to shareholders of £20.0 million to be paid today. The success of SIS in signing new media rights deals under the new model without significant upfront payments has freed up cash within the business to facilitate the dividend.
The dividend is the first dividend to be paid since a small dividend was declared in December 2014 and represents a catch up in the distribution of profits to shareholders from the existing contracts for media rights prior to the low margin contracts commencing.
The Board of SIS is satisfied with the progress made in moving to the low margin low risk model and diversified business, however it notes that the process is not as yet complete. Once SIS is fully operating on the new business model the Board of SIS expects significantly lower dividend payments to its shareholders."
Accordingly, the dividend payable to CMG will amount to £4,108,000. The Board of CMG will review the best use of these funds when received and will report to shareholders of the Company in due course.
Enquiries:
Catalyst Media Group plc
Michael Rosenberg, Non-Executive Chairman Melvin Lawson, Non-Executive Director | 07785 727 595 020 7734 8111 |
Strand Hanson Limited James Harris Richard Tulloch | 020 7409 3494 |
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.