CTEA.L Regulatory News (CTEA)

8 Jun 2006 07:02

Milestone Group PLC08 June 2006 For Immediate Release 8 June 2006 MILESTONE GROUP PLC ("Milestone" or "the Company") DISPOSAL OF PASSION RADIO (OXFORD) LIMITED TRADING AS PASSION 107.9 ("Passion") Milestone today announces the successful completion of a strategic review of itsradio assets with the disposal of the entire issued share capital of Passion,free of intra group loans, to Absolute Radio International Limited for a cashconsideration of £300,000. Passion is a youth targeted local radio station operating in the Oxford area. Inthe financial year ended 30 September 2005, Passion reported losses of £284,000on sales of £178,000. Unaudited management accounts show that in the first eightmonths of the new financial year ended 31 May 2006, Passion made losses of£203,000 on total sales of £96,000. The sale of Passion completes the strategic review of Milestone's radio divisionwhich, in the financial year ended 30 September 2005, made consolidated lossesof £0.4 million on sales of £1.5 million. Milestone Chief Executive, Andy Craig, said: "In the past four months, Milestone has successfully disposed of its majorityshareholdings in three analogue radio stations as well as the whole of Passionfor a total consideration, in aggregate, of approximately £2.3 million. TheBoard is pleased to have been able to achieve these valuations on small radiostations at a time when the commercial radio industry as a whole is widelyacknowledged to be depressed. "Passion has been a wholly owned subsidiary of Milestone since the Company'sadmission to AIM in July 2003. Under the Milestone management team, the stationhas grown its official RAJAR audience figures from total hours of 22,000 and amarket share of 0.4% (Q1, 2003) to total hours of 119,000 and a market share of2.3% (Q1, 2006). Despite this progress, the Board realistically assessed thatfurther audience and revenue growth would require significant additionalinvestment at a time when the radio advertising outlook remains uncertain. "Having successfully disposed of all of the Company's radio interests, the Boardintends to appraise the continuing operations in publishing and television witha view to exploring all opportunities to maximise value for shareholders." Milestone has agreed to acquire £25,000 of advertising airtime with Passion overthe next 24 months in order to continue to cross promote its local mediainterests in Oxfordshire. Milestone has also agreed to continue to provide alimited number of head office administrative functions to Passion, withoutcharge, for a maximum period of four months. The sale of Passion represents a non-cash loss of approximately £450,000 to theCompany in respect of a write down of unamortised good will. The proceeds,which have been received in full, will be used for the general working capital purposes of the Company. For further information please contact: Milestone Tel: 01235 547 800Andy Craig / Daniel Cass Buchanan Communications Tel: 020 7466 5000Bobby Morse / Suzanne Brocks Appendix - Milestone is an AIM listed media group. Its main trading companiescomprise of: •Courier Newspapers (Oxford) Limited - publishes Courier Journal, Property Weekly, Oxfordshire Living •Basingstoke Observer Limited - publishes Basingstoke Observer •Oxford Broadcasting Limited (trading as SIX TV) - operates SIX TV Oxford and SIX TV Southampton This information is provided by RNS The company news service from the London Stock Exchange