Trading Update and Sale of Front Magazine


 

TIDMSPMG 
 
RNS Number : 7374W 
Sport Media Group PLC 
03 August 2009 
 

3 August 2009 
Sport Media Group plc 
("Sport Media" or "the Company") 
Trading Update and Sale of Front Magazine 
The Board of Sport Media Group Plc, today issued the following trading update: 
"As we approach the end of the second six months trading of our 17 month 
financial year to 31 December 2009, we are pleased to announce that, following 
the successful completion of re-arranged bank facilities, and the provision of a 
loan from David Sullivan and Gold Group International, the Group has seen a 
significant improvement in trading. 
In particular, the recovery in circulation of the newspaper titles has been very 
encouraging. In recent weeks we have achieved average daily sales 
(Monday-Friday) of approaching 85,000 copies, which is 18% higher than the nadir 
in March, and more than 6% up year-on-year. The involvement of our Honorary 
Publisher, David Sullivan, continues to have a positive impact, and we are 
grateful for his continued oversight. 
Saturday circulations have also improved significantly, with most recent 
Saturday sales of just over 55,000 (from a low of c. 45,000). Average Sunday 
Sport figures have also increased over the same period by 7.5% to c. 76,500 
(four-week averages). These increases are extremely encouraging as we move into 
the summer holiday period, and the Group is confident that this growth, combined 
with fewer people travelling abroad, will result in circulation continuing to 
perform well over this traditionally weaker period. 
Advertising revenues are stable, and the digital division, which uses the 
newspaper for marketing, has also seen a benefit from the increase in 
circulation. Given the cost savings that have been achieved, and the new print 
contract that has reduced our production costs since May, it is pleasing to 
report that profitability, and cash generation, is currently running ahead of 
our revised budgets. 
Whilst the operating performance of the Group has been positive the Board is 
cautious about the trading status of the smallest of the Newspaper's three 
distributors, Dawson News Limited. As at the 31 July 2009 the Group had a 
financial exposure of c. GBP160,000 with Dawsons News. 
The Company has also today announced that the business and assets of Flip Media 
Limited, the publisher of Front Magazine, has been sold to independent start up 
Kane Limited from current owners Sport Media Group for a consideration of 
GBP87,500. In the year to 31 July 2008 Flip Media reported Net Assets of 
GBP6,744 and a net loss pre consultancy fees, management income and tax, of 
GBP115,102. 
The Board also today announces that it expects to publish the Company's Second 
interim report, for the six months to 31st July, at the beginning of October. 
For further information, please contact: 
Sport Media Group plc 
Andrew Fickling, Chief Executive Officer 
Tel: +44 (0) 161 236 4466 
 
 
Daniel Stewart & Company plc 
Simon Leathers / Oliver Rigby 
Tel: +44 (0) 20 7776 6550 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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