UBC Media, currently selling its commercial division to Global Traffic Network, has reported trading in the first four months of the current financial year is down 15 per cent on the same period last year.
Chairman John Hodson will update shareholders today on his comments made at the time of the Company's preliminary announcement in June, saying that:
[i]"I said at the time of our preliminary announcement in June that the next few months would see profound changes at UBC and in the radio industry as a whole. We are now amidst those changes, which are taking place against the backdrop of a challenging economic climate. However, I am pleased to say that we are making the strategic progress outlined in June, on schedule.
We expect to complete the sale of our Commercial division to Global Traffic Networks Inc. (GTN) before the end of October. Under the terms of the Letter Of Intent signed with GTN, we expect them to pay a cash sum of £11 million on completion and UBC can earn a further £5.5 million in cash depending on the performance of the division in the twelve months thereafter.
Following the sale, UBC will consist of its Production and Interactive divisions. Trading in these divisions in the first four months has been more encouraging and is marginally ahead of budget.
As already announced, UBC's Cliq music downloading service has now been re-focused as a business-to-business service and integrated within the Interactive division. The Company expects Cliq to be available before Christmas on Wi-Fi connected radios.
"These are challenging times but I believe that UBC has taken the right steps to ensure that it is well placed to deliver future value for shareholders".[/i]