SRH turnover believed to be up 11% on last year

Group turnover at Scottish Radio Holdings (SRH) is estimated to be 11 per cent ahead of this time last year, the company said yesterday.

SRH, which has extensive media interests in Ireland, said in a pre-close update that this sharp growth was spread across its various divisions. The figures refer to the first six months of the financial year, October 2004 to March 2005.

The publishing and radio group Emap, which owns a 27.8 per cent stake in SRH, will issue its own trading update today.

Speculation about a potential takeover bid from Emap for SRH have been circulating for months. If an Emap bid is successful, it could result in a major sell-off of SRH newspaper interests in Ireland, which Emap is unlikely to retain.

SRH currently owns Today FM, a national radio service, and FM 104, a Dublin-based service. It is understood the company is also close to finalising a deal to purchase Highland Radio in Co Donegal for about €6 million.

It also owns the following local newspapers: the Kilkenny People, the Leitrim Observer, the Tipperary Star, the Longford Leader and the Nationalist and Munster Advertiser.

The company has often been accused of overpaying for Irish assets, but in recent times the valuations it has placed on businesses have fallen. For example, it refused to pay the purchase price demanded by the owners of LMFM last year. This station was later bought by UTV.

Including acquisitions, the company's radio revenues for the six months to March 31st are estimated to be 13 per cent ahead of the same period last year.

The company said local advertising revenues in this division were up 9 per cent, although there was a decline in national advertising revenue.

Its Score press division, which publishes 45 local newspaper titles, is estimated to have increased revenues by 7 per cent, compared to same period last year.

"The group has had an encouraging first six months, with healthy performances from both the radio and press divisions. We are pleased with the first half and look forward to a good result for the group overall for the year to September 2005. The board... believes that the immediate and longer term prospects remain attractive," said a statement.