STV taps market for £16m as it sees 'modest' advertising upturn

Broadcaster STV Group is raising more than £16 million to bolster its balance sheet amid the ongoing impact of the Covid-19 emergency.

STV chief executive Simon Pitts. Picture: Laurence Winram

The Glasgow-based group said that while the economic outlook remained “uncertain”, its board was confident in the long-term prospects for the business.

Chief executive Simon Pitts told investors: “Over the last two years STV has been transformed into a leaner, more creative, digital-first media company that has been delivering a consistently strong viewing performance alongside double digit operating profit and earnings per share growth.

“This placing is designed as a prudent step to strengthen the balance sheet and support the continued delivery of our successful growth strategy when market conditions normalise.

“While the short-term outlook remains uncertain, our on-screen performance continues to be excellent, we are starting to see modest signs of improvement in the advertising market, and the board is confident in the long-term prospects of the group.”

The firm said that as a result of “proactive” measures it had taken to mitigate the commercial impact of coronavirus, cash savings of about £18m had been made for the year ending 31 December 2020. It has also increased bank facilities from £60m to £80m, as well as postponing pension contributions.

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