Scottish Radio Holdings set for acquisition trail again

Scottish Radio Holdings (SRH), the owner of Today FM and five local papers in the Republic, will report a 4 per cent rise in group revenue for the six months to March 31st, according to a trading statement issued yesterday.

In contrast to other British media groups, the company said revenues were strong enough to enable SRH to make further acquisitions in 2003, including in Ireland. It announces its results for the period October 2002 to March 2003 in late May.

In a trading statement, the group said, excluding acquisitions and disposals, group revenue is expected to rise by 4 per cent, radio revenue should rise by 5 per cent, while press revenue should be up 3 per cent.

Including acquisitions, radio and press revenues are expected to be 24 per cent ahead of last year, said the statement. The figures cover the first six months of SRH's financial year, which runs from October to the end of March.

In the radio sector, revenue is expected to rise by 5 per cent, reflecting an 8 per cent increase in national advertising revenue. Sponsorship of programmes would help to push these figures higher, SRH said. When contributions from acquisitions are added in, radio revenues are expected to rise by 32 per cent, ahead of the same period last year.

SRH has 23 wholly or partly owned radio stations in the UK and the Republic. No figures were disclosed on revenue growth for the Republic yesterday.

Revenue for SRH's Score Press Division, which is made up of 43 weekly newspaper titles, is expected to rise by 3 per cent. Including acquisitions, press revenues for the six months to March 31st should be 13 per cent ahead of the same period last year.

SRH said it was too early to say how the full year would turn out. "However, we are pleased with the start to the financial year and we are confident we are in a strong position to develop both divisions through organic and acquisition-led growth."

SRH's chief executive, Mr Richard Findlay, told The Irish Times recently the company wanted to make further acquisitions in Ireland, particularly on the radio side.

The group previously made a bid for Country 106, but the deal fell through. The other obvious candidate is FM 104, but this is not up for sale at present because of the Broadcasting Commission of Ireland rules, which stipulate that no station can be sold two years or less after its licence has been renewed.

Meanwhile, the British Department of Trade and Industry has given the go-ahead for SRH's main rival, Scottish Media Group, to sell the Herald and its other Scottish titles to US newspaper giant Gannett.