SMG continues to search for CE
The Scottish Media Group have drawn up a 'long list' of potential candidates to take over as Group Chief Executive.
A number of people have been approached, and the Chairman is currently in discussions with potential candidates for the position.
The news comes as part of the Market Trading Update today, where the Board of SMG report that Virgin Radio maintains its out-performance of the radio market. However, due to the high operational gearing of its television and cinema businesses, the Board now believes that SMG's profits for the full year 2006 will fall materially behind its previous expectations. As a result, the
Group is in discussions with its banks in relation to a potential breach of certain of its financial covenants and a satisfactory outcome is expected.
In addition, the company has received a significant number of expressions of interest in both Primesight and Pearl & Dean. The disposal process for each business is under way, with the sale of Primesight proceeding more quickly as a result of its stronger trading. Further market updates will be released as appropriate.