23rd Oct 2013 13:55
LONDON (Alliance News) - Catalyst Media Group PLC said Wedneday that Satellite Information Systems Holdings Limited, in which it has a 20.54% stake, will close its Outside Broadcasting division following the loss of a contract with the British Broadcasting Corporation.
Catalyst, whose sole asset is its holding in SIS, said it didn't expect the closure of the division to have a material impact on the profitability of SIS's core business, being racing and related media rights. However, the costs of the closure will be treated as an exception cost in SIS's current financial year ending March 31, 2014, and to a lesser extent the following year.
"The remaining business of SIS is trading profitably and in line with budget with strong positive cash flow," Catalyst said. "The future dividend policy of SIS will be considered later this year."
Catalyst said it will review the carrying value of its investment in SIS, which was valued at GBP34.6 million on June 30, and this reduction is likely to be reflected in its results for the year ended June 30, which it said it expects to publish in December.
In afternoon trading Wednesday, Catalyst shares were down 2.7% at 107.00 pence.
By Tom Waite; [email protected]; @thomaslwaite
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