Scottish Radio Holdings dismisses Score sale rumour

0 Comments | Sunday Herald, The, May 20, 2001 | by Juliette Garside

Scottish Radio Holdings (SRH) has been in talks to sell its outdoor advertising division, Score Outdoor, this year.

SMG, which has built a 29.45% stake in SRH with the long-term ambition of acquiring the company, is understood to have approached SRH's bankers in January about buying Score.

The approach was made by SMG's investment bank J Henry Schroder & Co, which spoke to Goldman Sachs, hired by SRH to carry out a strategic review of the company last December.

SMG, which owns the outdoor advertising group Primesight as well as Scottish TV and the Sunday Herald, signalled an interest after hearing that other companies were inquiring about buying Score. But talks went no further because SRH is understood to have been looking for a price well above the #55 million SMG estimated Score was worth.

A spokesman at SRH's financial PR agency, Gavin Anderson, said: "SMG made an approach in January through their advisers. Goldman received approaches from a number of players for Score."

He added: "SRH do not consider it in the interests of shareholder value to dispose of Score. It is not for sale."

Score is Britain's fourth largest 48-sheet poster business, and is focused on the Midlands, the north-west England, south-west England and Scotland.

According to SRH's interim results, announced on Friday, Score Outdoor's turnover is #8.4m, up 15% in the six months to March 2001.

In common with other radio groups, SRH is suffering from a downturn in advertising revenues. While its overall turnover for the last six months was up 18% to #40m, its profits were down 5%.

Turnover was boosted by the outdoor and local newspaper divisions. The analogue radio business saw turnover drop from 17.5m to 16.9m. Analogue profits were down from 6.6m to 5.7m.

The day before SRH announced its interims, the company released a statement saying that Goldman Sachs had concluded its strategic review. The statement claimed SRH had been seeking talks with SMG, but had been rebuffed.

An SMG spokesman said the company was not prepared to comment.