Welcome to Manchester Confidential
Reset Password
The Confidential websites will be undergoing routine updates. This may cause the sites to go offline. We apologise in advance for any inconvenience.

You are here: Manchester ConfidentialNews.

Sunday Sport owner stays in red

Sport Media cuts losses and defers bank loan amid falling sales

Published on September 30th 2010.


Sunday Sport owner stays in red

The Manchester-based publisher of the Sunday and Daily Sport recorded pre-tax losses for the first half of 2010.

Sport Media Group Plc made a loss of £306,000 despite underlying profits of £800,000. The firm said that charges for amortisation and share-based payments had reduced the figure, although it was greatly improved compared to the £5.8m loss for the same period in 2009.

Sales fell 14 per cent to £9.5m and shares in the firm closed Wednesday at 1.5p, valuing the business at £1.5m. It said that earnings for the second half of the year were likely to be ‘below current market expectations.’

The company also agreed to defer a monthly loan payment of £50,000 to the Royal Bank of Scotland for six months, to provide ‘the necessary working capital headroom.’

Martin Robinson, Chairman of Sport Media, said the focus was ‘stabilising the core businesses’, which included selling off two loss-making subsidiaries.

“As a result, all trading group entities are now profitable and cash generative,” he said. “Further efficiencies gained in the newspaper supply chain, along with steady sales means that the print division is tracking in line with budget despite the continuing depressed state of the wider markets for newspaper sales and advertising.

“To date, the second half of the year has continued to see a solid performance from the newspaper, with some circulation gains although there is continued pressure on advertising revenues.”

“Achieving and maintaining performance improvements are critical to ensure that the repayment holiday provided by our bankers is sufficient to manage our working capital requirements and enable the Group to resume reducing its significant debt position.

“Whilst the directors expect the Group to continue to be cash generative in the second half of the year, EBITDA and PBT (profits before tax) are likely to be below current market expectations.”

Like what you see? Enter your email to sign up for our newsletters which are chock-a-block with more great reviews, news, deals and savings.

Anon tooSeptember 30th 2010.

It's been ages since I read The Sport. Is it any good?

To post this comment, you need to login.Please complete your login information.
OR CREATE AN ACCOUNT HERE..
Or you can login using Facebook.

Latest Rants

Anonymous

Repeating,without any evidence the same point that socialism = public services is hardly…

 Read more
Anonymous

You absolutely right,I hate all these bloody nimbys stopping development and progress.Of course if…

 Read more
Anonymous

Manchester's size and climate isn't dissimilar to Rotterdam or Dusseldorf but the city is held back…

 Read more
Anonymous

Straying off the point again David, which is that investing in public services is socialist but as…

 Read more

Explore The Site

© Mark Garner t/a Confidential Direct 2017

Privacy | Careers | Website by: Planet Code | SEO by The eWord