REG - STV Group PLC - Interim Results for 6 months ended 30 June 2025
Thu 07:00
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RNS Number : 7200A STV Group PLC 25 September 2025
7am, 25 September 2025
Interim Results for the 6 months ended 30 June 2025
and update on cost savings plan
Interim Results for the 6-months ended 30 June 2025
· Total revenue of £90.0m (Jun-24: £90.4m) as Studios growth offsets
advertising declines:
o Total advertising revenue (TAR) of £45.6m (2024: £50.7m) down 10%,
driven by national linear advertising down 16% impacted by Euros 2024 in the
comparator
o Studios revenue grows to £42.2m (2024: £37.5m), up 13%, despite
difficult commissioning market
· Adjusted operating profit of £6.7m, down 37% on H1 2024, reflecting
decline in TAR and inflationary pressures partly offset by cost savings
o Studios breakeven, in line with prior year and seasonal norm
o Audience profit of £9.1m, down 25% given operating leverage associated
with TAR performance
· Statutory operating profit of £3.3m (2024: £6.5m) reflects
restructuring costs of £2m associated with review of unscripted label
portfolio
o Loss before tax of £0.2m (2024: profit of £4.8m)
· Net debt of £35.7m, including production financing of £5.2m; lower
than start of year (total net debt £38.7m including production financing of
£9.9m)
o Leverage (net debt/EBITDA) at half year at 1.6 times (covenant max 3
times)
· STV remains most popular peak-time channel in Scotland; STV Player
delivered highest ever H1 viewing, up 8% year on year to 37m hours
· 30 commissions won by STV Studios in 2025 YTD; high-end drama, Army
of Shadows, commissioned by C4 for Two Cities in recent weeks
· Plans for STV Radio launch on track
· No change to FY25 outlook as guided in July
Financial Summary - 6 months to 30 June 2025 2024 vs 2024
Revenue £90.0m £90.4m -
Total advertising revenue £45.6m £50.7m -10%
Operating profit £3.3m £6.5m -49%
Adjusted operating profit* £6.7m £10.6m -37%
(Loss)/profit after tax (£0.3m) £7.1m n/a
Statutory basic EPS (0.1p) 12.4p n/a
Adjusted basic EPS* 7.1p 15.5p -54%
Net debt(+) £35.7m £28.0m +£7.7m
Dividend per share Nil 3.9p
* For reconciliation of adjusted to statutory results, see note 8
+ Group banking and production finance facilities, excluding lease liabilities
(see note 20)
Cost savings plan and cash management flexibility
· Management is implementing a comprehensive cost savings programme to
protect profitability and provide balance sheet flexibility in response to the
deterioration in the advertising and content commissioning markets, and ensure
the business is well set for growth as market conditions improve.
o Cost savings programme to deliver additional cost savings of £3m per
annum with c.£2.5m to be delivered in FY26 and expected cost of change of
c.£1m. These savings are incremental to the previously announced target of
£5m run rate by end 2026.
o Review of the unscripted label portfolio in STV Studios with actions taken
to stop development activity in STV Studios Entertainment and make no further
investment in Mighty Productions.
· The Group's 2030 pension deficit recovery plan includes flexibility
around the timing of contribution payments during 2026 and 2027.
· The Group recently increased its bank facility from £70m to £75m by
accessing £5m of its £20m accordion, and amended covenants to provide
increased headroom; currently £30m undrawn.
· Re-phasing of non-essential capital expenditure over next 18-24
months.
Outlook
· No change to full year 2025 outlook as guided in July: Q3 TAR
expected to be down c.8%; visibility remains limited with current indications
for October looking similar.
· STV Studios total orderbook of £40m at end of August, of which £19m
expected to be recognised as revenue in 2025 with the balance in 2026.
Commissioning decisions expected in the coming weeks on a number of unscripted
and scripted developments at advance stage.
· STV Radio progressing to plan with licence granted by Ofcom,
presenter line up announced, and first advertising partner secured.
FY25 guidance Revenue Adjusted operating margin
Audience £90m-£95m 13%-15%
STV Studios £75m-£85m c.4%
Group £165m-£180m c.7%
Dividend
· Given the uncertain trading environment, the Board is not proposing
an interim dividend and will continue to review the position and provide a
further update at the full year results.
Rufus Radcliffe, Chief Executive, commented:
"I have every confidence that STV will navigate the currently difficult
trading environment in both our key markets, successfully implement our
FastFwd strategy, and deliver sustainable value to our shareholders.
"We recognise that our cost savings programme impacts colleagues across the
business, and we are committed to supporting people through this change. These
steps are necessary to strengthen our financial resilience and position STV
for long-term growth.
"The launch of STV Radio is on track, viewing on the STV Player is at an
all-time high, and we are delighted that Army of Shadows has been commissioned
by Channel 4 from Two Cities."
There will be a presentation for analysts today, 25 September 2025, at
12.30pm, via Zoom. Should you wish to attend the presentation, please
contact Angela Wilson, angela.wilson@stv.tv or telephone 0141 300 3000.
Enquiries:
STV Group plc:
Kirstin Stevenson, Head of Communications, Tel: 07803 970106
Camarco:
Geoffrey Pelham-Lane, Tel: 07733 124 226
Ben Woodford, Tel: 07790 653 341
Dividend
· Given the uncertain trading environment, the Board is not proposing
an interim dividend and will continue to review the position and provide a
further update at the full year results.
Rufus Radcliffe, Chief Executive, commented:
"I have every confidence that STV will navigate the currently difficult
trading environment in both our key markets, successfully implement our
FastFwd strategy, and deliver sustainable value to our shareholders.
"We recognise that our cost savings programme impacts colleagues across the
business, and we are committed to supporting people through this change. These
steps are necessary to strengthen our financial resilience and position STV
for long-term growth.
"The launch of STV Radio is on track, viewing on the STV Player is at an
all-time high, and we are delighted that Army of Shadows has been commissioned
by Channel 4 from Two Cities."
There will be a presentation for analysts today, 25 September 2025, at
12.30pm, via Zoom. Should you wish to attend the presentation, please
contact Angela Wilson, angela.wilson@stv.tv or telephone 0141 300 3000.
Enquiries:
STV Group plc:
Kirstin Stevenson, Head of Communications, Tel: 07803 970106
Camarco:
Geoffrey Pelham-Lane, Tel: 07733 124 226
Ben Woodford, Tel: 07790 653 341
FINANCIAL AND OPERATING REVIEW
Group overview
Total revenue was in line with the first half of 2024 at £90.0m (2024:
£90.4m), with growth in the Studios division offsetting declines in total
advertising revenue. Total advertising revenue (TAR) of £45.6m was 10% down
year on year, reflecting the Euros in the comparator, and impacted by national
linear advertising down 16%. Compared to 2023, TAR was up 3% in the first
half.
Adjusted operating profit of £6.7m was down 37% on the prior half year due to
the flow-through to profit of lower advertising revenues. Adjusted operating
margin was 7.4% (2024: 11.7%).
The adjusted operating profit performance is before adjusting items of £3.4m
relating to:
· Restructuring of the STV Studios unscripted label portfolio, which
resulted in a series of actions including stopping development activity in STV
Studios Entertainment and cessation of funding to Mighty Productions. Non-cash
costs of £2m have been recognised reflecting the write-off of development
stock and investment value respectively; and
· Amortisation of intangible assets of £0.9m (2024: £0.8m); and
includes
· HETV tax credits of £0.5m (2024: £2.3m), which are reflected as a
contribution towards costs in the adjusted results but reflected as tax income
in the statutory position (see note 8 to the interim financial statements).
On a statutory basis, the Group generated operating profit of £3.3m (2024:
£6.5m).
Total finance costs were £4.5m (2024: £3.9m), including interest on the
Group's borrowings of £1.8m (2024: £1.7m), £0.5m (2024: £nil) in relation
to forward currency contracts in Two Cities, and non-cash interest on lease
liabilities of £0.2m (2024: £0.2m). The balance of total finance costs is
shown as adjusting items and comprises non-cash costs in relation to the
Group's defined benefit pension schemes of £1.1m (2024: £1.1m) and the
unwind of the discount on put option liabilities of £0.9m (2024: £0.9m).
The Group recognised £1.1m of other income as an adjusting item in the first
half of the year (2024: £2.3m). These amounts relate to step acquisitions of
production labels and revaluation of put option liabilities to fair value at
the balance sheet date (note 8).
Net debt (excluding lease liabilities) at 30 June 2025 of £35.7m (Dec-24:
£38.7m) comprises drawdowns under the Group's revolving credit facility of
£42.0m (Dec-24: £40.0m) net of unamortised financing fees of £0.6m (Dec-24:
£0.4m), other loans in a subsidiary company of £nil (Dec-24: £0.3m),
amounts drawn under non-recourse production financing facilities of £5.2m
(Dec-24: £9.9m) and net cash balances of £10.9m (Dec-24: £11.1m).
The Group's key financial covenants are leverage (net debt/EBITDA), which must
be less than 3 times, and interest cover, which must be at least 4 times.
Reflecting total net debt of the Group, leverage was 1.6x at the end of June
(Dec-24: 1.5x) with interest cover 7.1x (Dec-24: 8.5x). See note 18 for
further details on borrowings and banking arrangements.
The accounting deficit on the Group's defined benefit pension schemes has
decreased to £44.4m at the half year (Dec-24: £48.3m) as a result of
contributions paid and actuarial gains. The next triennial valuation is due at
31 December 2026. With the priority of maintaining the current recovery plan
end date of October 2030, the Group has agreed flexibility with the pension
scheme trustees in relation to the timing of contribution payments during FY26
and FY27 (see note 21).
AUDIENCE DIVISION
In the first half of the year, STV remained the most popular peak time channel
in Scotland with a viewing share of 21% and delivering 96% of the top 500
commercial audiences.
Together, STV and STV Player reached 3.5m viewers per month, which is 76% of
Scots. STV's peak time commercial TV share was greater than any other
commercial media group across linear and digital platforms, and STV has a
higher viewing share than the ad-tier of Netflix, Disney+ and Prime Video
combined.
STV Player achieved its best ever H1 in viewing terms, delivering 37m viewing
hours, an increase of 8% year on year.
STV's drama has out-performed all our commercial competitors across H1, with
our top drama, crime thriller Protection, +40% greater than closest rival
Patience on Channel 4. Soaps also continue to attract strong audiences: whilst
overall viewing to soaps (Emmerdale and Coronation Street) is down 3% year on
year, on-demand viewing on STV Player has increased by 48%, with Emmerdale and
Coronation Street the top two performers on STV Player. In third position is
Brookside, which we acquired in 2023 and has delivered 10.6m hours of viewing
to date.
Our most watched moment of the year was in the Scotland v England Six Nations
match, which attracted a peak audience of 750k. STV is also the nation's top
destination for entertainment, with Scots spending more time watching
entertainment programming, such as I'm A Celebrity… and Britain's Got
Talent, with STV than any other broadcaster or platform.
STV News at Six remains the most watched news programme in Scotland for the
6th year, with a 30% viewing share, and the latest Ofcom news consumption
report confirms that STV News is the number one choice for news about
Scotland. STV's digital news amassed a total of 226m views across H1, with
shifting trends in consumption resulting in a 207% increase in video views.
YouTube views were up 33% (+1.2m) year on year and TikTok views +154% (+25m)
year on year.
Partnerships remain paramount for our audience business, and we secured some
key STV Player-only acquisitions in H1, boosting our inventory and driving
viewer engagement.
In January, STV Player teamed up with Premier Sports in a unique deal that
combined our ad-free programming with live sports and on-demand content from
Premier Sports, including football, rugby, and motorsports.
Audio
In March, STV announced its intention to launch a new national commercial
radio station, aimed at 35-54 year-olds and available on DAB, online and Smart
Speaker. Plans are on track. We have secured our Ofcom licence and our first
commercial partner in Tunnock's and are assembling a talented team with a
wealth of experience, including Graham Bryce (former COO, Bauer) as MD, David
Treasurer (ex-BBC Radio Scotland and Global) as Programme Director, and
high-profile, award-winning DJs Ewen Cameron and Cat Harvey as our breakfast
show hosts. Studio space is being created at the Company's offices in Glasgow.
Financials
The Audience division reported revenue of £47.8m in H1 2025 (2024: £52.9m).
Total advertising revenue of £45.6m was down 10% year on year and the driver
of the overall performance. Adjusted operating profit of £9.1m was realised
(2024: £12.2m) at a margin of 19% (2024: 23%).
STV STUDIOS
As the number of unscripted commissions slowed in late Q2, a review of the
labels across the portfolio was undertaken resulting in a series of actions
including stopping development activity in STV Studios Entertainment and
ceasing continued investment in Mighty Productions. Across the scripted
labels, in addition to the recently announced commission of a new six-part
series for Channel 4 secured by Two Cities Television, commissioning decisions
are expected in the coming weeks on several ideas in advance development.
So far this year, STV Studios (including its minorities) has secured 30 new
commissions, including several original formats and returning series.
· STV Studios Factual will produce new army docuseries The Troops for
BBC Scotland and iPlayer; a 5th series of The Travelling Auctioneers for BBC
One and the 32nd series of Antiques Road Trip (BBC One).
· STV Studios Entertainment secured an 11(th) series of Celebrity
Catchphrase for ITV.
· Crackit Productions secured two series commissions for Channel 4 with
Crime Scene Cleaners and Supercruising: Life at Sea.
· Rumpus Media, which became a wholly owned label in H2 2024, secured a
4-part series from More4.
2025 saw the release of the second series of The Fortune Hotel on ITV from
Tuesday's Child, alongside multiple returners that continued to deliver loyal
audiences for broadcasters including The Hit List, Antiques Road Trip, The
Travelling Auctioneers and The Yorkshire Auction House. The multi-award
winning Blue Lights returns to the BBC on 29 September for a much-anticipated
third series.
In May we announced our plans to invest in a new branded content start-up, Fan
Club, led by ex-C4 Digital Commissioner Joe Churchill, which brings a distinct
new offering to our family of labels.
Financials
STV Studios delivered revenue of £42.2m in the first half of 2025 (2024:
£37.5m), growth of 13% in a very difficult market. The seasonality of the
division is such that most of the adjusted operating profit is generated in
the second half of the year and the first half breakeven performance continued
to reflect that traditional H1/H2 split.
REGULATORY
Public Service Media (PSM) is hugely valued by viewers but very much under
threat. STV welcomed Ofcom's report on the future of PSM this summer, in
particular their recommendation that such content should be prominent on third
party platforms, and that adequate funding is necessary to sustain a broad
range of content to ensure it is commercially viable, such as regional news.
We were also pleased to see a strong recommendation on the need for an urgent
plan around the future of TV distribution, which is currently commercially
unsustainable. Universality is key, particularly in certain rural areas of
Scotland with limited digital coverage. Partnership working will be key to
ensure PSMs can continue to deliver for audiences, and we are very open to
industry collaboration.
PRINCIPAL RISKS AND UNCERTAINTIES
The Board considers the principal risks and uncertainties affecting the
business activities of the Group are consistent with those disclosed in the
Company's Annual Report and Accounts 2024:
· Regulatory environment
· Market volatility and impact on revenue generation
· Reliance on ITV for quality network programming and effective
national sales
· Changing viewing habits
· Cyber-attack or data breach incident
· Defined benefit pension scheme shortfalls resulting in increasing
employer contributions
· Recruitment and retention of people
Further details of the Group's policies on principal risks and uncertainties
can be found in the annual report, a copy of which is available at
www.stvplc.tv (http://www.stvplc.tv/) .
Unaudited condensed interim income statement
Six months ended 30 June 2025
2025 2024*
Note Adjusted results Adjusting Statutory Adjusted Adjusting Statutory
items results results items results
£m (note 8) (note 8)
£m £m £m £m £m
Revenue 7 90.0 - 90.0 90.4 - 90.4
Operating expenses (83.3) (3.4) (86.7) (79.8) (4.1) (83.9)
Operating profit 6.7 (3.4) 3.3 10.6 (4.1) 6.5
Finance costs
- borrowings (1.8) - (1.8) (1.7) - (1.7)
- defined benefit pension schemes - (1.1) (1.1) - (1.1) (1.1)
- lease interest (0.2) - (0.2) (0.2) - (0.2)
- other finance costs (0.5) (0.9) (1.4) - (0.9) (0.9)
Total finance costs (2.5) (2.0) (4.5) (1.9) (2.0) (3.9)
Other gains and losses - 1.1 1.1 - 2.3 2.3
Share of loss of associates (0.1) - (0.1) (0.1) - (0.1)
(Loss)/profit before tax 4.1 (4.3) (0.2) 8.6 (3.8) 4.8
Tax (charge) / credit 9 (1.0) 0.9 (0.1) (0.1) 2.4 2.3
(Loss)/profit for the period 3.1 (3.4) (0.3) 8.5 (1.4) 7.1
Attributable to:
Owners of the parent 3.4 (3.4) - 7.1 (1.4) 5.7
Non-controlling interests (0.3) - (0.3) 1.4 - 1.4
3.1 (3.4) (0.3) 8.5 (1.4) 7.1
Earnings per share
Basic 10 7.1p (0.1)p 15.5p 12.4p
Diluted 10 7.1p (0.1)p 15.1p 12.1p
*Presentation in the prior year has been updated to reflect the treatment of
HETV tax credits in the column for adjusting items for transparency
The above unaudited condensed interim income statement should be read in
conjunction with the accompanying unaudited notes.
Unaudited condensed interim statement of comprehensive income
Six months ended 30 June 2025
2025 2024
£m £m
(Loss)/profit for the period (0.3) 7.1
Items that will not be reclassified to profit or loss:
Gain on re-measurement of defined benefit pension schemes 0.6 5.9
Deferred tax charge (0.2) (1.5)
Other comprehensive income - net of tax 0.4 4.4
Total comprehensive income for the period 0.1 11.5
Attributable to:
Owners of the parent 0.4 10.1
Non-controlling interests (0.3) 1.4
0.1 11.5
The above unaudited condensed interim statement of comprehensive income should
be read in conjunction with the accompanying unaudited notes.
Unaudited condensed interim balance sheet
As at 30 June 2025
30 June 31 December
2025 2024
Note £m £m
Non-current assets
Intangible assets 12 36.8 36.5
Property, plant and equipment 13 7.3 6.8
Right-of-use assets 13 17.1 16.2
Investments 1.7 2.3
Deferred tax asset 14 19.3 19.5
Trade and other receivables 17 0.2 0.5
82.4 81.8
Current assets
Inventories 16 36.7 28.8
Trade and other receivables 17 44.2 48.0
Cash and cash equivalents 10.9 11.1
91.8 87.9
Total assets 174.2 169.7
Equity
Ordinary shares 19 23.3 23.3
Share premium 115.1 115.1
Capital redemption reserve 0.2 0.2
Merger reserve 173.4 173.4
Other reserve 1.9 2.1
Accumulated losses (318.7) (316.0)
Shareholders' equity (4.8) (1.9)
Non-controlling interests (11.3) (11.0)
Total equity (16.1) (12.9)
Non-current liabilities
Borrowings 18 41.4 39.6
Lease liabilities 17.7 16.6
Retirement benefit obligations 21 44.4 48.3
Deferred tax liabilities 14 3.5 3.8
Trade and other payables 9.1 15.2
116.1 123.5
Current liabilities
Borrowings 18 5.2 10.2
Trade and other payables 68.1 48.1
Lease liabilities 0.9 0.8
74.2 59.1
Total liabilities 190.3 182.6
Total equity and liabilities 174.2 169.7
The above unaudited condensed interim balance sheet should be read in
conjunction with the accompanying unaudited notes.
Unaudited condensed interim statement of changes in equity
Six months ended 30 June 2025
Capital redemption reserve Attributable to owners of the parent
Share capital Share premium Merger reserve Accumulated losses Non-controlling interest
Other reserve Total equity
£m £m £m £m £m £m £m £m £m
At 1 January 2025 23.3 115.1 0.2 173.4 2.1 (316.0) (1.9) (11.0) (12.9)
Loss for the period - - - - - - - (0.3) (0.3)
Other comprehensive income - - - - - 0.4 0.4 - 0.4
Total comprehensive income/(loss) for the period
- - - - - 0.4 0.4 (0.3) 0.1
Share based compensation - - - - (0.2) 0.2 - - -
Dividends paid (note 11) - - - - - (3.3) (3.3) - (3.3)
At 30 June 2025 23.3 115.1 0.2 173.4 1.9 (318.7) (4.8) (11.3) (16.1)
At 1 January 2024 23.3 115.1 0.2 173.4 2.4 (321.9) (7.5) (5.1) (12.6)
Profit for the period - - - - - 5.7 5.7 1.4 7.1
Other comprehensive income - - - - - 4.4 4.4 - 4.4
Total comprehensive income for the period
- - - - - 10.1 10.1 1.4 11.5
Share based compensation - - - - 0.1 - 0.1 - 0.1
Dividends paid (note 11) - - - - - (3.4) (3.4) (0.5) (3.9)
Changes in non-controlling interest (note 15)
- - - - - 0.2 0.2 (4.6) (4.4)
At 30 June 2024 23.3 115.1 0.2 173.4 2.5 (315.0) (0.5) (8.8) (9.3)
The above unaudited condensed interim statement of changes in equity should be
read in conjunction with the accompanying unaudited notes.
Unaudited condensed interim statement of cash flows
Six months ended 30 June 2025
2025 2024
Note £m £m
Operating activities
Cash generated by operations 20 16.2 23.0
Interest and fees paid in relation to bank facilities (2.1) (1.6)
Corporation tax received/(paid) 0.7 (0.9)
Pension deficit funding - recovery plan payment (5.1) (5.0)
Net cash generated by operating activities 9.7 15.5
Investing activities
Acquisition of subsidiary undertakings, net of cash acquired 15 (0.3) (0.9)
Loan repayment from/(provided to) associate 0.1 (0.2)
Purchase of intangible assets (0.4) (0.3)
Purchase of property, plant and equipment (1.5) (0.2)
Exercise of put options 15 - (4.4)
Purchase of shares in associate and other investments (0.7) -
Net cash used in investing activities (2.8) (6.0)
Financing activities
Payment of obligations under leases (0.8) (1.0)
Borrowings drawn 9.8 13.4
Borrowings repaid (12.8) (8.2)
Dividends paid to equity holders 11 (3.3) (3.4)
Dividends paid to non-controlling interests - (0.5)
Foreign exchange loss - (0.1)
Net cash (used in) / generated by financing activities (7.1) 0.2
Net movement in cash and cash equivalents (0.2) 9.7
Cash and cash equivalents, including overdraft balances, at beginning of 11.1 9.3
period
Cash and cash equivalents, including overdraft balances, at end of period 10.9 19.0
30 June 2025 31 December 2024
Cash and cash equivalents 10.9 11.1
Bank overdrafts - -
Cash and cash equivalents, including overdraft balances, at end of period
10.9 11.1
Unaudited notes to the condensed interim financial statements
Six months ended 30 June 2025
1. General information
STV Group plc (the "Company") is a public limited company incorporated and
domiciled in Scotland and listed on the London Stock Exchange. The address
of the registered office is Pacific Quay, Glasgow, G51 1PQ.
The principal activities of the Company and its subsidiaries (together "the
Group") are the production and broadcasting of television programmes,
provision of internet services and the sale of advertising airtime and space
in these media.
These condensed interim financial statements were approved for issue on 25
September 2025 and have been reviewed, not audited. They do not comprise
statutory accounts within the meaning of section 434 of the Companies Act
2006. Statutory accounts for the year ended 31 December 2024 were approved
by the Board of Directors on 11 March 2025 and delivered to the Registrar of
Companies. The report of the auditors on those accounts was unqualified, did
not contain an emphasis of matter and did not contain any statement under
section 498 of the Companies Act 2006.
2. Basis of preparation
These unaudited condensed interim financial statements for the six months
ended 30 June 2025 have been prepared based on the accounting policies set out
in the 2024 annual financial statements and in accordance with UK adopted IAS
34 and the Disclosure Guidance and Transparency Rules sourcebook of the UK's
Financial Conduct Authority. These should be read in conjunction with the
annual consolidated financial statements for the year ended 31 December 2024
which were prepared in accordance with United Kingdom adopted international
accounting standards. The condensed interim financial statements and the
annual report are available on the Group's website at www.stvplc.tv.
The annual financial statements for the year to 31 December 2025 will be
prepared in accordance with United Kingdom adopted international accounting
standards.
Going concern
At 30 June 2025, the Group was in a net debt position (excluding lease
liabilities) of £35.7m comprising drawdowns under its revolving credit
facility of £42.0m and production financing of £5.2m, partially offset by
unamortised finance fees of £0.6m and net cash balances of £10.9m. The
Group is in a net current asset position and generates cash from operations
that enables it to meet its liabilities as they fall due, and other
obligations. Headroom under the Group's banking facilities at 30 June 2025
was £28m under the RCF plus the £20m accordion facility (31 December 2024:
£30m plus £10m accordion). Subsequent to the balance sheet date, the Group
has amended its banking facilities (see note 18).
During the 6 months ended 30 June 2025 and to the date of these condensed
financial statements, the Group has operated well within its key financial
covenants of leverage (ratio of net debt to EBITDA) and interest cover, which
must be less than 3 times and more than 4 times, respectively. At 30 June
2025, the Group's leverage was 1.6 times and its interest cover was 7.1 times,
both well within covenant limits.
As part of the going concern review, the Group considers forecasts of the
advertising and commissioning markets to determine the impact on liquidity.
The Group's forecasts and projections, taking account of reasonably possible
changes in trading performance, show that the Group will be able to operate
within the level of its current available funding and financial covenants.
The Directors performed a full review of principal risks and uncertainties
during 2024 as part of its process to review and approve the three-year plan
covering the period to 31 December 2027.
A severe but plausible downside scenario was identified that reflected
crystallisation of several risks, principally in relation to advertising
revenues and the number and scale of programme commissions anticipated to be
won and delivered in the period. This scenario did not make any assumptions
around a broad UK economic recovery but reflected the benefit of certain
mitigating actions within the control of management, including the flexibility
agreed with pension trustees on the timing of contributions payable (note 21).
Under this scenario, the Group is projected to generate sufficient cash to
enable it to continue in operation and remain within the covenant levels under
the Group banking arrangements.
Following completion of these activities, the Directors have a reasonable
expectation that the Group has adequate resources to continue in operation for
at least 12 months from the date of this report. Accordingly, the Group
continues to adopt the going concern basis in preparing its consolidated
financial statements.
3. Accounting policies
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 31 December 2024. There were no
changes to accounting standards in the period that had any material impact on
the financial statements.
Taxes on income in the interim periods are accrued using the tax rate that
would be applicable to expected total annual profit or loss.
4. Judgements and estimates
Judgements
In the course of preparing the condensed interim financial statements, no
judgements have been made in applying the Group's accounting policies that had
a significant effect on the amounts recognised in the condensed interim
financial statements, other than those involving estimation below.
Estimates
The preparation of the Group's condensed interim financial statements requires
management to make estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the accompanying
disclosures and the disclosure of contingent liabilities. Uncertainty about
these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected
in future periods.
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are described below. The Group based its assumptions
and estimates on parameters available when the condensed interim financial
statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances
arising that are beyond the control of the Group. Such changes are reflected
in the assumptions when they occur.
Inventory
Deferred programme production stock forms part of inventory and is stated in
the financial statements at the lower of cost and net realisable value. The
key assumption is estimating the likely future revenues for which associated
programme costs are expensed in line with. A detailed forecast of future
secondary sales is prepared by management based on historic experience and
expected future trends. £0.7m was expensed through the income statement in
the period (30 June 2024: £0.7m).
Pension obligations
The present value of pension obligations depends on several factors that are
determined on an actuarial basis using a number of key assumptions. The
assumptions used in determining the projected benefit obligation for pensions
include the discount rate and mortality rate. Any changes in these
assumptions will impact the carrying amount of pension obligations.
The Group determines the appropriate discount rate at the end of each
period. This is the rate that should be used to determine the present value
of estimated future cash outflows expected to be required to settle the
pension obligations. In determining the appropriate discount rate, the Group
considers the interest rates of high-quality corporate bonds that are
denominated in the currency in which the benefits will be paid, and that have
terms to maturity approximating the terms of the related pension liability.
Regarding mortality, the base tables used are updated every three years (to
coincide with triennial valuations) or more frequently when there is evidence
of a change in experience. The CMI tables relating to future improvements in
mortality are updated when new information is available, usually annually.
Other key assumptions for pension obligations are based in part on current
market conditions. Refer to note 21 for further disclosure.
5. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial risks, to varying
degrees: currency risk, credit risk, liquidity risk and cash flow interest
rate risk.
The condensed interim financial statements do not include all financial risk
management information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's annual
financial statements for the year ended 31 December 2024.
There have been no changes in any risk management policies since the year end.
6. Seasonality of operations
In line with the UK advertising market, the autumn season provides the Group
with its highest level of advertising revenues, as trading picks up from the
quieter summer months. The Studios division delivers the majority of
programmes to commissioners in the second half of the year.
7. Business segments
Information reported to the Group's Chief Executive for the purposes of
resource allocation and assessment of segment performance is by product.
Following the announcement in May 2025 that the Group would be combining its
Broadcast and Digital divisions into a single Audience division, the
organisation and leadership structure has been updated, as has the reporting
provided to the Chief Executive.
On this basis, the Group's reportable segments are now Audience and Studios.
The 2024 comparators have been restated accordingly, with the previous
disclosures for Broadcast and Digital combined into Audience.
Audience Studios Total
Six months 2025 2024 2025 2024 2025 2024
£m £m £m £m £m
Revenue
Sales 52.2 56.8 43.1 38.4 95.3 95.2
Intra-segment sales (4.4) (3.9) (0.9) (0.9) (5.3) (4.8)
Segment revenue 47.8 52.9 42.2 37.5 90.0 90.4
Segment result
Adjusted operating profit 9.1 12.2 - 0.1 9.1 12.3
Unallocated corporate expenses (2.4) (1.7)
Adjusted operating profit 6.7 10.6
Adjusting items in operating profit (note 8) (3.4) (4.1)
Other adjusting items - finance costs (note 8) (2.0) (2.0)
Finance costs (2.5) (1.9)
Other gains and losses (note 8) 1.1 2.3
Share of loss of associates (0.1) (0.1)
(Loss)/profit before tax (0.2) 4.8
Tax (charge)/credit (0.1) 2.3
(Loss)/profit for the period (0.3) 7.1
Adjusted operating profit (as shown above) is the statutory operating profit
before adjusting items and includes High-End Television (HETV) tax credits
receivable. The HETV tax credits relate solely to the Studios operating
segment.
The only significant changes in total assets from the amount disclosed in the
last annual financial statements are due to the seasonality of operations,
both in terms of the advertising market and delivery of programmes. Please see
note 6 for further details.
8. Adjusting items and reconciliation of statutory results to adjusted
results
In reporting financial information, the Group presents alternative performance
measures (APMs) which are not defined or specified under the requirements of
IFRS. The Group believes that these APMs, which are not considered to be a
substitute for or superior to IFRS measures, provide stakeholders with
additional helpful information on the performance of the business.
Below is a reconciliation of the statutory results to the adjusted results:
2025 2024
Profit Profit
Operating profit before Basic Operating before Basic
tax EPS Profit tax EPS
£m £m pence £m £m pence
Statutory result 3.3 (0.2) (0.1)p 6.5 4.8 12.4p
Acquisition and integration
costs (i)* - - 0.5 0.5
Restructuring costs (ii)* 2.0 2.0 0.5 0.5
Amortisation of intangible
assets (iii)* 0.9 0.9 0.8 0.8
HETV tax credit (iv)* 0.5 0.5 2.3 2.3
IAS 19 net finance costs (v) - 1.1 - 1.1
Other finance costs (vi) - 0.9 - 0.9
Other gains and losses (vii) - (1.1) - (2.3)
Adjusted results 6.7 4.1 7.1p 10.6 8.6 15.5p
*These items make up the adjusting items of £3.4m (2024: £4.1m) within
operating profit in the income statement.
(i) Acquisition and integration costs
On 6 July 2023, the Group acquired Greenbird Media Limited. In the prior half
year, a cost of £0.5m was recognised being the earn outs payable to founding
members, professional fees and restructuring costs.
(ii) Restructuring costs
In H1 2025, restructuring costs relate to amounts written off following a
review of the unscripted label portfolio. No further investment will be made
in Mighty Productions with the carrying value written off in full (£1.1m) and
following the cessation of development activity in STV Entertainment,
development stock of £0.8m has been written off. Related one-off cash costs
of £0.1m were incurred.
In the prior half year, restructuring costs of £0.5m were incurred in
relation to execution of the previously announced Group cost saving plan to
deliver £5m savings per annum by the end of FY26.
(iii) Amortisation of intangible assets
Following the acquisitions detailed in note 15, the Group has undertaken fair
value assessments of the assets acquired and liabilities assumed. The fair
value attributable to intellectual property has been amortised in the period,
resulting in a total charge of £0.9m (2024: £0.8m). Amortisation of assets
acquired through business combinations are included within adjusted results as
they are acquisition-related and, in line with our treatment of other
acquisition-related costs, we consider that they do not reflect the underlying
trading performance of the Group.
(iv) High-End Television tax credit
The Group meets the eligibility criteria to claim tax relief on the production
of certain programmes. This incentive was introduced in the UK to support the
creative industries and is a critical factor when assessing the viability of
investment decisions in the production of qualifying programmes. These
production tax credits are reported within the total tax charge in the income
statement in accordance with IAS 12. However, STV considers the production tax
credits to be a contribution to production costs and therefore more aligned to
working capital in nature. Therefore, the adjusted results for the Group
reflect these credits as a contribution to operating costs and not a tax item.
The tax credit regime is transitioning to an 'above the line' Audio-Visual
Expenditure credits ('AVEC') arrangement which is accounted for in a similar
way to the alternative performance measure presented above.
Due to the timing of expenditure for the relevant productions and the
transition period between the regimes, the tax credit of £0.5m recognised in
the current period (2024: £2.3m) will be claimed under the HETV regime and
therefore has been adjusted in the results.
(v) IAS 19 net finance costs
IAS 19 net finance costs are excluded from non-statutory measures as they are
non-cash costs that relate to legacy defined benefit pension schemes.
(vi) Other finance costs
The Group has liabilities relating to amounts payable to minority shareholders
under put options at the date of acquisition of Greenbird Media Limited, Two
Cities Television Limited and Hello Halo Productions Limited. A finance cost
of £0.9m (2024: £0.9m) has been recognised in the period in relation to the
unwinding of the discount on these liabilities.
(vii) Other gains and losses
Other gains and losses of £1.1m (2024: £2.3m) have arisen in relation to (i)
acquisitions achieved in stages; and (ii) acquired put option liabilities
being revalued to fair value at the balance sheet date (note 15).
9. Tax (charge)/credit
Six months Six months
2025 2024
£m £m
The (charge)/credit for taxation is as follows:
Underlying charge for the current period (0.9) (0.1)
Adjustment in respect of prior periods (0.1) -
Charge for the period before adjusting items (1.0) (0.1)
Tax credit on adjusting items 0.4 0.1
High-end television tax credit 0.5 2.3
Credit for the period - adjusting items 0.9 2.4
(Charge)/credit for the period (0.1) 2.3
The tax on the results for the six month period is charged at the rate that
represents the best estimate of the effective tax rate (ETR) expected for the
full year, applied to the pre-tax result for the six month period.
The deferred tax assets at 30 June 2025 have been measured using the rates
that are expected to apply in the periods when the underlying timing
differences, on which deferred tax is recognised, are expected to unwind.
10. Earnings per share
The calculation of earnings per share is based on earnings after tax and the
weighted average number of ordinary shares in issue during the period,
excluding ordinary shares purchased by the Group and held for use by the STV
Employee Benefit Trust.
For diluted earnings per share, the weighted average number of ordinary shares
in issue is adjusted to assume conversion of the weighted average of dilutive
potential ordinary shares. The Group has one type of dilutive potential
ordinary share namely share options granted to employees.
The adjusted earnings per share figures that have also been calculated are
based on earnings before adjusting items that are significant in nature and/or
quantum and not expected to recur every year and are therefore considered to
be distortive. The adjusting items recognised in the current and prior years
are detailed in note 8 and presented below net of the related tax effect.
Adjusted earnings per share have been presented to provide shareholders with
an additional measure of the Group's year on year performance.
Earnings per share Six months Six months
2025 2024
Pence Pence
Basic earnings per share (0.1)p 12.4p
Diluted earnings per share (0.1)p 12.1p
Adjusted basic earnings per share 7.1p 15.5p
Adjusted diluted earnings per share 7.1p 15.1p
The following summarises the earnings and share data used in the calculation
of earnings per share:
Six months 2025 Six months 2024
Earnings £m £m
Result for the period attributable to equity shareholders - 5.7
Adjusting items in operating profit (net of tax) 2.5 1.7
IAS 19 net financing cost 1.1 1.1
Other finance costs 0.9 0.9
Other gains and losses (1.1) (2.3)
Adjusted profit 3.4 7.1
Number of shares Million Million
Weighted average number of ordinary shares in issue 46.0 46.0
Dilution due to share options 0.2 1.2
Total weighted average number of ordinary shares in issue 46.2 47.2
11. Dividends
A final dividend of £3.3m relating to the year ended 31 December 2024 was
paid from the parent company's accumulated realised profits in May 2025 (30
June 2024: final dividend relating to the year ended 31 December 2023 of
£3.4m, paid in May 2024).
The Board is not proposing an interim dividend in respect of the current
financial year in light of the current uncertain trading environment. The
Board will keep the position under review.
12. Intangible assets
During the six months ended 30 June 2025, the Group incurred expenditure of
£0.4m on web development (£0.7m in the year to 31 December 2024; £0.3m in
the six months ended 30 June 2024). In addition, the Group acquired £0.1m of
intellectual property and recognised £1.2m of goodwill in relation to the
acquisition of Flicker Productions Limited (see note 15). There were
disposals of £nil net book value in the current period and in the year ended
31 December 2024.
13. Property, plant and equipment and right-of-use assets
During the six months ended 30 June 2025, the Group incurred expenditure of
£1.5m on property, plant and equipment (£0.7m in the year ended 31 December
2024; £0.2m in the six months ended 30 June 2024). There were disposals of
£nil net book value in the current period and £0.2m net book value in the
year ended 31 December 2024.
During the six months ended 30 June 2025, there were additions of £1.7m to
right-of-use assets (£0.4m in the year ended 31 December 2024; £nil in the
six months ended 30 June 2024) with £0.1m added following the Flicker
acquisition (see note 15). There were disposals in the current period of
£0.1m net book value, £0.6m net book value for the year ended 31 December
2024 and £0.6m net book value for period ended 30 June 2024.
14. Deferred tax
At 30 June 2025, total deferred tax assets of £19.3m were recognised on the
balance sheet (31 December 2024: £19.5m). Of this, £11.1m relates to the
deficit on the Group's defined benefit pension schemes (31 December 2024:
£12.1m) and the balance of £8.2m relates to tax losses, accelerated capital
allowances and short-term timing differences (31 December 2024: £7.4m).
At 30 June 2025, total deferred tax liabilities of £3.5m were recognised on
the balance sheet (31 December 2024: £3.8m). These relate to liabilities
recognised in regard to the acquisition of Greenbird Media Limited and Two
Cities Television Limited.
15. Business combinations
Flicker Productions Limited
In July 2023, the Group acquired a minority stake of 40% in Flicker
Productions Limited ("Flicker"), as part of the acquisition of Greenbird Media
Limited group. On 8 April 2025, the Group increased its equity stake in
Flicker to a majority holding of 100% following a restructuring of the
shareholding agreed with the previous majority owners of the company, which
resulted in the additional 60% transferring to the Group for nominal
consideration.
In line with accounting requirements for a business combination achieved in
stages, the initial stake of 40% has been remeasured at fair value at the
acquisition date, resulting in a gain of £0.1m, which is presented within
other gains and losses on the face of the income statement.
The Group has completed the majority of its work in relation to assessing the
fair values of identifiable assets acquired and liabilities assumed with only
a small number of minor points to be finalised. Therefore, the fair values
have been presented as provisional in the table below but it is not
anticipated that there will be any material changes between the provisional
and final position, which will be finalised within 12 months from the date of
acquisition, as required by the relevant accounting standard.
Provisional fair value of identifiable assets and liabilities of Flicker 2025
Productions Limited
£m
Intangible assets 0.1
Right of use asset 0.1
Inventory 0.2
Trade and other receivables 0.1
Cash and cash equivalents 0.1
Trade and other payables (1.4)
Contract liabilities (0.2)
Lease liabilities (0.1)
Fair value of net identifiable liabilities (1.1)
Goodwill 1.2
Consideration 0.1
Total net cash inflow relating to acquisition of Flicker Productions Limited £m
Consideration paid -
Cash and cash equivalents acquired 0.1
Total cash inflow 0.1
Goodwill of £1.2m represents the value placed on the opportunity to enhance
the future growth prospects of the STV Studios unscripted division through
increasing the volume of new productions, formats and intellectual property.
This has been calculated as the fair value of the consideration transferred
less the net of the fair value of the identifiable assets acquired and
liabilities assumed.
From the date of acquisition, Flicker contributed £0.4m of revenue and £nil
of adjusted operating profit to the Group's results.
Hello Halo Productions Limited
During the period, the Group finalised its fair value assessment of the
identifiable assets acquired and liabilities assumed of Hello Halo Productions
Limited and subsidiary company, acquired on 30 August 2024. The table below
sets out the adjustments that have been made to the provisional fair values
previously disclosed within the annual financial statements for year ended 31
December 2024, to reach the final position.
Fair value of identifiable assets and liabilities of Hello Halo Productions
Limited and subsidiary company
Provisional Adjustments £m Final £m
£m
Intangible assets 0.2 (0.2) -
Inventory 2.1 0.2 2.3
Trade and other receivables 1.3 - 1.3
Contract assets 0.1 - 0.1
Cash and cash equivalents - 0.3 0.3
Deferred tax liabilities (0.1) 0.1 -
Trade and other payables (3.3) (0.5) (3.8)
Contract liabilities (3.2) - (3.2)
Fair value of net identifiable liabilities (2.9) (0.1) (3.0)
Non-controlling interest measured at proportionate share of identifiable net
liabilities
- - -
Adjustments to non-controlling interest regarding derivative put options
2.8 - 2.8
Goodwill 1.9 0.1 2.0
Consideration 1.8 - 1.8
£m £m £m
Present value of expected liability on put options 2.8 - 2.8
Rumpus Media Limited
During the period, the Group finalised its fair value assessment of the
identifiable assets acquired and liabilities assumed of Rumpus Media Limited,
acquired on 17 July 2024. The table below sets out the adjustments that have
been made to the provisional fair values previously disclosed within the
annual financial statements for year ended 31 December 2024, to reach the
final position.
Fair value of identifiable assets and liabilities of Rumpus Media Limited
Provisional Adjustments £m Final £m
£m
Intangible assets 0.4 (0.4) -
Inventory 0.4 - 0.4
Trade and other receivables 0.8 - 0.8
Contract assets 0.3 - 0.3
Cash and cash equivalents 0.7 - 0.7
Deferred tax liabilities (0.1) 0.1 -
Trade and other payables (1.1) - (1.1)
Contract liabilities (0.9) - (0.9)
Borrowings (0.3) - (0.3)
Fair value of net identifiable assets/(liabilities) 0.2 (0.3) (0.1)
Goodwill 0.2 0.3 0.5
Consideration 0.4 - 0.4
Summary of acquisition related transactions for period ended 30 June 2025
Two Hello Halo Flicker Greenbird Media Total
Cities
£m £m £m £m £m
Cash (outflow)/inflow
Consideration paid, net of cash acquired - - 0.1 - 0.1
Deferred consideration paid - - - (0.4) (0.4)
Acquisition of subsidiary undertakings, net of cash acquired
- - 0.1 (0.4) (0.3)
Other gains and (losses)
Revaluation of initial investment held to fair value at acquisition date
- - 0.1 - 0.1
Revaluation of expected liability of put options to fair value as at 30 Jun
2025
(0.2) 1.0 - 0.2 1.0
(0.2) 1.0 0.1 0.2 1.1
Summary of acquisition related transactions for period ended 30 June 2024
Two Cities Greenbird Media Total
£m £m £m
Cash outflow
Consideration paid, net of cash acquired (0.4) - (0.4)
Deferred consideration paid - (0.5) (0.5)
Acquisition of subsidiary undertakings, net of cash acquired
(0.4) (0.5) (0.9)
Purchase of additional shares in subsidiary undertakings / exercise of put
options
- (4.4) (4.4)
Changes in non-controlling interest
Proportionate share of net (assets)/liabilities at acquisition date
(2.0) - (2.0)
Present value of expected liability on put options recognised on acquisition
6.7 - 6.7
Adjustments recognised following finalisation of fair value of assets and
liabilities acquired
- (0.3) (0.3)
4.7 (0.3) 4.4
Other gains and (losses)
Revaluation of initial investment held to fair value at acquisition date
2.3 - 2.3
2.3 - 2.3
16. Inventory
30 June 31 December
2025 2024
£m £m
Deferred programme production stock 13.8 14.2
Programme production work in progress 22.9 14.6
36.7 28.8
17. Trade and other receivables
30 June 31 December
2025 2024
£m £m
Trade receivables 13.4 16.3
Prepayments 4.7 4.1
Contract assets 8.1 9.0
Other receivables 8.8 15.3
Income tax recoverable 9.4 3.8
44.4 48.5
Amounts included in current assets 44.2 48.0
Amounts included in non-current assets 0.2 0.5
44.4 48.5
18. Borrowings
Non-current borrowings
At the balance sheet date, the Group had a £70m revolving credit facility
("RCF") with a £20m accordion (uncommitted) for a minimum 3-year term with
two 1-year extension options that was entered into in February 2025. Total
borrowings at the balance sheet date under the RCF were £41.4m, made up of
£42.0m facility drawings offset by £0.6m unamortised finance fees (31
December 2024: £39.6m, being £40.0m drawings offset by £0.4m unamortised
finance fees). The principle financial covenants are leverage (the ratio of
net debt to EBITDA), which must be below 3 times, and interest cover (which
must be higher than 4 times). Leverage at the end of June 2025 was 1.6 times
(2024: 1.4 times) and interest cover was 7.1 times (2024: 9.8 times).
Since the balance sheet date, the Group has agreed a facility amendment with
lenders to provide incremental cash management and balance sheet flexibility.
The RCF has been increased to £75m through accessing the accordion facility,
with covenants amended during FY26.
Current borrowings
The Group had loans of £5.2m (31 December 2024: £9.9m) for production
financing in the period. At 31 December 2024, one of the Group's subsidiaries
had another loan for £0.3m.
19. Share capital
Issued share capital at 30 June 2025 and 31 December 2024 amounted to £23.3m
relating to 46,722,499 ordinary shares with a par value of £0.50 per share.
All issued shares are fully paid
20. Notes to the condensed interim statement of cash flows
Six months Six months
2025 2024
£m £m
Operating profit 3.3 6.5
Adjustments for:
Depreciation on property, plant and equipment 1.0 1.3
Amortisation of intangible assets 1.2 1.0
Amortisation of right-of-use assets 0.8 0.8
Write-off of assets 1.9 -
Share based payments - 0.1
(Increase)/decrease in inventories (8.5) 12.2
Decrease/(increase) in trade and other receivables 2.8 (8.8)
Increase in trade and other payables 13.7 9.9
Cash generated by operations 16.2 23.0
Net debt reconciliation
Revolving credit facility Net cash & cash equiv Net debt inc. lease liabilities
Production financing inc overdrafts Net Lease liabilities
debt
£m £m £m £m £m £m
At 1 January 2025 (39.9) (9.9) 11.1 (38.7) (17.4) (56.1)
Cash flows (1.0) 4.7 (0.2) 3.5 0.8 4.3
Non-cash movements (i) (0.5) - - (0.5) (2.0) (2.5)
At 30 June 2025 (41.4) (5.2) 10.9 (35.7) (18.6) (54.3)
Net debt excluding production financing was £30.5m (31 December 2024:
£28.8m).
(i) Non-cash movements relate to the amortisation of borrowing costs (for
long-term borrowings), and interest charged on lease liabilities net of
derecognition for liabilities relating to terminated leases.
21. Retirement benefit schemes
The fair value of the assets and the present value of the liabilities in the
Group's defined benefit pension schemes at each balance sheet date was:
At 30 June At 31 December
2025 2024
£m £m
Defined benefit scheme obligations (312.8) (319.1)
Defined benefit scheme assets 268.4 270.8
Net pension deficit (44.4) (48.3)
The reduction in the net pension deficit is driven by Company contributions to
the Schemes and actuarial gains. This has been offset by interest cost and
admin expense recognised.
Assumptions used to estimate the scheme obligations
The significant actuarial assumptions used for accounting purposes reflect
prevailing market conditions in the UK and are as follows:
At 30 June At 31 December
2025 2024
% %
Rate of increase in salaries nil nil
Rate of increase of pensions in payment 3.00 3.25
Discount rate 5.45 5.45
Rate of price inflation (RPI) 3.00 3.25
Assumptions regarding future mortality experience are set based on advice,
published statistics and experience in each scheme and are reflected in the
table below.
Average life expectation in years of a pensioner retiring at age 65:
At 30 June At 31 December
2025 2024
Retiring at balance sheet date:
Male 20.8 20.7
Female 23.0 22.9
Retiring in 25 years
Male 21.9 21.9
Female 24.0 24.0
The sensitivities regarding the principal assumptions used to measure the
defined benefit obligation are set out below:
Assumption Change in assumption Impact on scheme liabilities
Discount rate Increase/decrease by 0.25% Decrease/increase by 2%
Rate of price inflation (RPI) Increase/decrease by 0.25% Increase/decrease by 1%
Rate of mortality Decrease by 1 year Decrease by 4%
These sensitivities have been calculated to show the movement in the defined
benefit obligations in isolation, and assuming no other changes in market
conditions at the balance sheet date.
Funding arrangements
Deficit recovery plans end in October 2030, within which the Company has
flexibility for the timing of deficit recovery payments to the end of FY27.
Under this arrangement, the 2025 deficit recovery payments remain £10.2m.
Payments in respect of FY26 will be c.£5m with flexibility to pay these
contributions in a single amount in respect of December 2026, in January 2027.
The recovery plans are designed to enable the schemes to reach a fully funded
position, using prudent assumptions about the future, by 2030.
22. Transactions with related parties
The Group provided advertising with an estimated fair value of £0.1m (2024:
£0.2m) for nil consideration to the charity organisation STV Appeal. The
charity purchased advertising from the Group for a total of £0.1m (2024:
£0.1m).
23. Post balance sheet events
Subsequent to the balance sheet date, the Group has had discussions with
lenders and pension scheme trustees as detailed in notes 18 and 21.
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge, these condensed consolidated
interim financial statements have been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority and that the interim management report includes a
fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· An indication of important events that have occurred during the
first six months and their impact on the condensed set of financial
statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year; and
· Material related party transactions in the first six months and
any material changes in the related-party transactions described in the last
annual report.
The directors of STV Group plc are listed in the Annual Report and Accounts
for 31 December 2024.
A list of current directors is maintained on the STV plc website:
www.stvplc.tv (http://www.stvplc.tv)
For and on behalf of the Board:
Lindsay Dixon
Chief Financial & Operating Officer
Date: 25 September 2025
Independent review report to STV Group plc
Conclusion
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2025 which comprises the income statement, the statement of comprehensive
income, the balance sheet, the statement of changes in equity, the cash flow
statement and related notes 1 to 23.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2025 is not prepared, in all
material respects, in accordance with United Kingdom adopted International
Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" issued by the Financial Reporting
Council for use in the United Kingdom (ISRE (UK) 2410). A review of interim
financial information consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly,
we do not express an audit opinion.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with United Kingdom adopted international accounting
standards. The condensed set of financial statements included in this
half-yearly financial report has been prepared in accordance with United
Kingdom adopted International Accounting Standard 34, "Interim Financial
Reporting".
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This Conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410; however future events or conditions may cause the entity to
cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the group's ability to continue as a going concern, disclosing
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report. Our Conclusion, including our
Conclusion Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for Conclusion
paragraph of this report.
Use of our report
This report is made solely to the company in accordance with ISRE (UK) 2410.
Our work has been undertaken so that we might state to the company those
matters we are required to state to it in an independent review report and for
no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company, for our review work,
for this report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
Glasgow, United Kingdom
Date: 25 September 2025
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