Digital growth and a thriving production business drove a 16 per cent increase in adjusted pre-tax profits at STV (STVG) last year. The Scottish broadcaster also cut its net debt by nearly a quarter, to less than two times cash profits, and reinstated its dividend.
Following other broadcasters, STV has been diversifying away from its core TV business. It earned 19 per cent of its revenues from non-broadcasting activities last year, and intends to push the share up to one-third by 2015. Those gains were driven by its production business, maker of Antiques Road Trip, which recorded a sales increase of a third to £14m and doubled operating profits to £400,000. STV's fledgling digital operations also contributed, delivering a 76 per cent rise in operating profit to £3m.
The company showcased its "overall resilience" last year, says chief executive Rob Woodward, who expects the strong growth in digital and production to continue. But there's plenty of room for improvement. Last year's digital sales were almost £4m below STV's £11m target, and production sales were £1m short, with a 3 per cent margin well behind the 10 per cent goal.
Broker Numis Securities raised its adjusted pre-tax profit and EPS forecasts for 2014 by 6 and 15 per cent, respectively, to £17.5m and 38p.
STV (STVG) | ||||
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ORD PRICE: | 359p | MARKET VALUE: | £140m | |
TOUCH: | 355-363p | 12-MONTH HIGH: | 359p | LOW: 127p |
DIVIDEND YIELD: | 0.6% | PE RATIO: | 11 | |
NET ASSET VALUE: | 19p* | NET DEBT: | 470% |
Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2009 | 90 | 6.1 | 12.3 | nil |
2010 | 105 | 3.9 | 14.6 | nil |
2011 | 102 | -0.9 | 1.6 | nil |
2012 (restated) | 103 | 6.4 | 13.0 | nil |
2013 | 112 | 14.3 | 32.2 | 2 |
% change | +9 | +123 | +148 | - |
Ex-div: 20 Apr Payment: 23 May *Includes intangible assets of £8.6m, or 22p a share |