Stvg Regulatory News (STVG)

25 May 2007 10:00

SMG PLC25 May 2007 25 May 2007 Chairman's AGM Statement The following statement will be made by SMG's Chairman, Richard Findlay attoday's Annual General Meeting to be held at 10.30am:- I am pleased to report that trading is in line with our expectations. As wepreviously stated, advertising markets have been varied in the first half of2007. Overall, television airtime revenues are expected to decline in the period to June by 7% over the same period last year, but this represents anoutperformance against ITV1 as a whole which was down by over 9% year on year.Having said that, ITV's view expressed in their recent AGM statement, of aweakness in interactive TV revenues is one we would share. Virgin Radio revenues have grown by 8% also outperforming the market, anddisplaying particularly strong online revenue growth. Pearl & Dean too has seenstrong revenue growth of 7% outperforming its 5% growth in screens, whilePrimesight has grown revenues by 8% on flat panel numbers. Assuming these trends continue, the Board views advertising markets for the remainder of the year with cautious optimism. There has been much business activity since the Boardroom changes in Februaryand the appointment of Rob Woodward as Chief Executive. Following renegotiationof our banking facility we have reached agreement with our banks on a renewedfacility until September 2008. We have appointed a new leadership team to workwith Rob; we have terminated the sale process of Primesight for the time beingand are re-energising the sale of Pearl & Dean. In addition, we have announcedan IPO of Virgin Radio. We believe a flotation of Virgin Radio will create astrong and clearly focussed radio business, with a powerful brand and willprovide an attractive pure play investment opportunity. Once completed, it willleave SMG with a stronger balance sheet on which to move forward and rebuildshareholder value. The company intends to announce further details of the turnaround plan for thebusiness by the end of June as previously promised and will be announcing itsinterim results for the six months ended 30 June in September. 25 May 2007 Further information: SMGDebbie Johnston, Head of Communications - 0141 300 3168 BrunswickSimon Sporborg/Ash Spiegelberg/James Hogan - 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange