25th Aug 2005 07:00
Milestone Group PLC25 August 2005 For Immediate Release 25 August 2005 MILESTONE GROUP PLC Disposal of Minority Holding in Reading 107 Milestone Group PLC ("Milestone" or "the Group"), the AIM listed media group,announces it has entered into an agreement to sell its 36.8% shareholding inReading Broadcasting Company Limited ("Reading 107") to GMG Radio HoldingsLimited and Goodhead Group Plc, existing shareholders in Reading 107, for anaggregate cash consideration, including repayment of Milestone loans, of£571,000. In the year ending September 2004, Reading 107 made a loss of £274,000 onturnover of £717,000. The latest (Q2, 2005) RAJAR audience research gave thestation a 14% weekly adult reach in the Reading area (36,000 listeners) and atotal market share of 3.6%. Milestone Chief Executive, Andy Craig, said: "This disposal completes the first stage of the review of strategy whichMilestone announced in June 2005. Milestone is proud to have played its part inthe establishment of a new radio station for Reading. Nevertheless, as aminority shareholder, the Group found itself limited in its ability to influencethe ongoing operations of the station. By disposing of this non-core investmentMilestone is able to fully focus it's resources and develop cross media at thefour radio stations in which the Group possesses ownership control." The sale of Milestone's investment in Reading 107 represents a loss of £335,000to the Group in respect of a write down of unamortised good will. The cashproceeds will be used for general working capital purposes of the Group. For further information: Milestone Group Tel: 01235 547 800Andy Craig Buchanan Communications Tel: 020 7466 5000Bobby Morse / Suzanne Brocks Arden Partners Tel: 020 7398 1632Richard Day This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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