REG - STV Group PLC - STV Group Full Year Results to 31 December 2025
Today 07:00
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RNS Number : 8715W STV Group PLC 17 March 2026
Press Release 0700 hours, 17 March 2026
STV Group plc Full Year Results to 31 December 2025
RESULTS IN LINE WITH EXPECTATIONS,
UNDERPINNED BY OPERATIONAL DISCIPLINE AND STRATEGIC DELIVERY
Key financials and operating highlights
· Group revenue of £176.9m, down 6%
o Total Advertising Revenue (TAR) of £89.3m, down 10%, driven by national
linear
o Studios revenue £83.0m, down 1%, a resilient performance
· Group adjusted operating profit of £11.6m, down 44%; statutory
operating profit £3.8m
o Both divisions reported a 35% decline in adjusted operating profit
o Group adjusted operating margin of 6.6% (2024: 11.0%)
o Management actions taken as planned to deliver annualised cost savings
totalling £8m by end FY26
· Group net debt at lower end of guidance range, at £45.3m (2024:
£38.7m)
· Successful launch of Audio business, including STV Radio, attracting
new advertisers to STV
· STV Player achieved highest ever consumption, up 9% to 75m hours
· Strengthened advertising proposition through pause ads and STV ADapt,
with new advertiser product innovation coming in 2026
· No final dividend proposed in respect of 2025 (2024: full year 11.3p)
Financial Summary 2025 2024 Change
Revenue £176.9m £188.0m -6%
Adjusted operating profit* £11.6m £20.6m -44%
Adjusted operating margin* 6.6% 11.0% -440bps
Operating profit £3.8m £13.2m -71%
(Loss)/profit for the year (£4.0m) £13.1m -
Adjusted basic earnings per share* 13.1p 29.0p -55%
Statutory basic earnings per share (10.8p) 23.5p -
Cash generated by operations £15.5m £17.7m -12%
Net debt(+) £45.3m £38.7m +£6.6m
Dividend per share (full year) - 11.3p -
* For reconciliation of adjusted to statutory measures see note 6
(+) Excluding lease liabilities but including amounts drawn under non-recourse
production financing facilities of £2.3m (2024: £9.9m)
Rufus Radcliffe, Chief Executive, said:
"Throughout a challenging 2025 for both of our key markets, we acted
decisively to adapt the business to rapidly changing conditions, and have
delivered results in line with latest guidance as well as making clear
progress across our strategic pillars. We remain focused on improving
financial performance in 2026 supported by tight cost discipline despite
continued limited market visibility. Our new Audience division, bringing
together broadcast, streaming and audio, is maximising reach and engagement,
strengthening our advertising proposition and opening new commercial
opportunities following the launch of STV Radio.
"STV Studios continues to deliver high‑quality, returnable IP with strong
international appeal, supported by an expanded customer mix and disciplined
portfolio management.
"Having taken decisive steps to re-engineer the Group's cost base in the
period, this focus on tight cost discipline will remain a priority in 2026. We
also believe 2026 offers reasons for optimism, including the Men's Football
World Cup, new advertiser product innovation, and major new scripted and
unscripted deliveries for global streamers. We believe that the transforming
media landscape will continue to offer opportunities for STV."
Strategic progress:
Content
· STV Studios continues to win commissions and deliver projects in a
difficult market, with 37 new commissions and recommissions in 2025 (2024:
51):
o Two Cities delivered series 3 of Blue Lights to BBC One; period drama
'spectacular' Amadeus launched on Sky and NOW in December
o STV Drama delivered The Witness to Netflix, the label's first commission
for a global streamer
o New returnable unscripted series: Game of Wool (Channel 4); and Jimmy
Carr's Am I The A****** (Comedy Central), both recommissioned this month
· Studios adjusted operating margin was 4.7% (2024: 7.2%), reflecting
lower format sales and margin pressure from commissioners
o Building blocks of margin improvement remain: 33 returning series in
production (2024: 37); secondary sales revenue of £7.3m (2024: £7.7m)
· Forward production orderbook of £33m at Dec-25 (Aug-25: £40m); no
cancellations notified
· Positive start to 2026 with production underway on three drama series
all delivering in 2026: Blue Lights 4 (BBC One), Army of Shadows (Channel 4),
and Criminal Record 2 (Apple TV) .
Audience
· Average monthly reach of STV/STV Player was 75% of Scots (3.5m),
greater than the ad tier of Netflix, Amazon Prime and Disney+ combined
· STV & STV Player combined still number 1 commercial destination
for audiences in Scotland with 97% of top 500 commercial programme audiences
across all TV channels and SVOD platforms on STV
· STV Player achieved highest ever consumption with total viewing hours
up 9% to 75m and registered Daily Active Users up 10%
· STV Radio successfully launched as planned in Jan-26, attracting new
audiences and advertisers to STV
· Pilot brands for STV ADapt seeing strong returns with progress
towards full roll-out in H2 2026 on plan
Net debt and cash management
· Net debt of £45.3m included amounts under non-recourse production
financing of £2.3m (2024: £38.7m including production financing of £9.9m)
o Increase in net debt partly relates to loss for the year of £4m (2024:
profit for the year £13.1m)
o Leverage 2.5x (covenant max 3x); interest cover 6.1 (covenant min 4x)
· On track to deliver annualised run rate savings of £8m by end FY26
o £4.1m delivered across FY24/FY25
o Actions taken to deliver balance of £3.9m in FY26; £3m from
restructuring programme implemented in H2 2025
· Accounting deficit on defined benefit pension schemes reduced to
£39.2m (2024: £48.3m)
o Flexibility obtained for contributions payable in FY26
Market Outlook
· Advertising outlook for Q1 2026:
o Total advertising revenue (TAR) expected to be down c.5%
o National linear expected to be down c.7%
o Regional linear expected to be down c.11%; regional significantly
outperformed national in 2025 with 2026 decline a result of shifting spend
patterns for a small number of larger advertisers
o VOD revenue expected to be +3%
· FIFA Men's World Cup expected to drive advertising revenue in Q2
· First RAJAR listening figures for STV Radio expected in August
· Studios: forward orderbook at end December 2025 of £33m
Dividend
· Although the business continues to be cash generative, given
continued pressure on operating margins and the current debt profile, the
Board believes that it is prudent not to declare a dividend in respect of
2025, to preserve financial flexibility and liquidity as the business
stabilises
· The Directors understand the importance of optimising value for
shareholders, and it is the Directors' intention to return to paying a
dividend when it is prudent for the Group to do so
There will be a presentation for analysts on STV's Full Year Results for 2025
today, Tuesday 17 March, at 12.30pm via Zoom. Should you wish to attend this
presentation, please email Angela Wilson at angela.wilson@stv.tv
(mailto:angela.wilson@stv.tv) .
Enquiries:
STV Group plc: Kirstin Stevenson, Head of
Communications Tel: 07803 970 106
Camarco: Geoffrey Pelham-Lane, Director
Tel: 07733 124 226
Ben
Woodford, Director
Tel: 07790 653 341
OPERATIONAL HIGHLIGHTS
STV STUDIOS
STV Studios continued its commitment to creating innovative formats with
global appeal, putting UK talent in front of audiences around the world.
In 2025, the macroeconomic challenges led to a continued weakness in the UK
advertising market which resulted in a further slowdown in content
commissioning with fewer commissions secured year on year. In response, we
ceased new development in STV Studios Entertainment and confirmed no further
investment in Mighty Productions. In May we diversified our portfolio further
with the addition of a minority investment in non-traditional branded content
start-up, Fan Club, which has strong future growth potential. Rumpus Media and
Flicker Productions both became wholly owned labels in 2025, and Pi
Productions was exited.
Our three scripted labels had productive years, producing and delivering high
value commissions. Majority-owned, Belfast-based Two Cities Television, won a
new six-part series for Channel 4, Army of Shadows, a co-production with
StudioCanal. The third series of their police drama, Blue Lights, launched on
BBC One and iPlayer to critical acclaim and impressive ratings, and series
four is in production for delivery in 2026. The drama won the prestigious
Drama award at the BAFTA ceremony in London in May 2025 and an IFTA in
February 2026. Their period drama 'spectacular' Amadeus launched on Sky and
NOW in December.
STV Studios Drama completed production of their three-part series, The
Witness, for Netflix which will launch in 2026. This is STV Studios' first
commission for the global streamer. Tod Productions has been in production on
the second series of acclaimed police thriller, Criminal Record, for Apple TV,
for delivery in 2026.
Our strong stable of returning unscripted series continues to be a valuable
source of income for STV Studios and has provided important repeat business
throughout the year. 2025 highlights include a fifth series of The Travelling
Auctioneers and the 32nd series of Antiques Road Trip for BBC One from STV
Studios Factual. Warner Bros. Discovery UK & Ireland commissioned this
team to produce three new series of our Auction House franchise, and the team
also delivered new three-part army docuseries The Troops for BBC Scotland and
iPlayer. They reimagined the antiques genre with new format, Antiques Riviera,
for More4 which aired in early 2026, and their three-part series, the Beauty
Queen and the Catfish for BBC Scotland attracted significant profile across
the UK.
An eight series of Tuesday's Child's music quiz, The Hit List, was produced
for BBC One (a format with strong international appeal); and a second series
of The Fortune Hotel was shown on ITV. Glasgow based Hello Halo's Game of Wool
fronted by Tom Daley launched on Channel 4 and was their most successful
factual entertainment launch of 2025.
Brighton and Manchester based Crackit TV had another strong year with new
commissions secured alongside production of their regular returning series.
Highlights included a hard-hitting documentary series exploring crime scene
cleaning in the UK and the US, Crime Scene Cleaners (Channel 4); a
consumer-focused spending show Secrets of Super Cheap Shopping (Channel 4);
and crime series, Social Media Monsters (Channel 4).
We currently have 4,750 hours of content in our archive across our portfolio,
and we see our distributor-neutral status as a key commercial advantage in our
international sales strategy. Key secondary sales highlights in 2025 included:
all seven series of quiz show, Bridge of Lies, are now airing in Australia on
the Seven Network; and Tuesday's Child's The Hit List has landed two regional
adaptations in Spain to date, with The Fortune Hotel adapted in Sweden and
Norway.
AUDIENCE
STV's Audience division is comprised of our broadcast channel, STV, our
Broadcaster Video on Demand (BVoD) streaming service, STV Player, and our
newly launched radio station, STV Radio.
STV and STV Player
Total viewing declined in 2025, but our Audience division continues to provide
stability and reach in a rapidly changing market. Whilst we continue to hold
share, like the rest of the industry we are facing significant structural
shifts in viewing habits with audiences moving from linear to digital at pace.
In addition, the business continued to operate against the backdrop of a weak
advertising market which showed no signs of improvement through 2025.
Against that backdrop, taken together, STV and STV Player reach 75% of Scots
on average each month, which is more than the ad tiers of Netflix, Prime Video
and Disney combined. STV had the greatest commercial share of any broadcaster
or streaming service on a TV set in 2025 (14.9%), and its 2025 peak time share
was greater than the next six commercial broadcast channels combined. Our
all-time share has been ahead of the ITV Network for the past eight years.
STV Player achieved its highest ever consumption in 2025, with total viewing
hours of 75m, up 9% versus 2024. This jumps to +15% year on year across
STV-owned platforms, with total viewing hours on those apps at a record 65m.
This is impressive, particularly compared with 2024 which delivered
significant audiences for the Men's EUROs. Registered Daily Active Users to
STV Player were up 10% year on year, which mirrors the overall growth in
consumption, and this group are watching more content than before (+25%).
I'm A Celebrity… Get Me Out Of Here was our top performing show of the year
and Scotland's most-watched entertainment title across all commercial
channels, beating Bake Off and Gogglebox. Across 2025, over 60m drama hours
were consumed across STV and STV Player and STV's drama has outperformed all
our commercial broadcaster/BVOD competitors across the year.
STV Player saw a significant +42% year on year increase in VOD soap
consumption, with the 7am episode drop of Coronation Street and Emmerdale
having a dramatic impact on how our audience view their favourite soaps. The
Calcutta Cup, with England playing Scotland in the Rugby Six Nations, was the
most watched moment on STV in 2025 with the audience peaking at 750k,
demonstrating STV's ability to bring audiences together across the country.
STV News at Six was the most watched news programme in Scotland for the 7th
year in a row, winning a 30% viewing share. As viewing habits continue to
shift, linear volumes are reducing and audiences to our digital news channels
are increasing, with users trending towards getting their news on demand. STV
news can be found on 13 online platforms including TikTok, Instagram,
Facebook, YouTube and Google. Average monthly views (page and video) were 66m
across 2025, more than double year on year. This performance reflects our
continued focus on meeting audience demand for trusted news video on the
platforms they choose to use - where and when they want it.
We signed 29 new STV Player content deals with 19 different distributors and
producers, comprising 88 titles and more than 1000 hours of new content,
complement our strong Channel 3 network offering.
We are now into the second year of our deal with Premier Sports, which
combines our ad-free programming with their live sports and on-demand content,
including football, rugby, and motorsports.
A key aim of this partnership is to drive new subscribers to the platform,
encouraging them to engage with STV Player content. In H2 2025, subscribers
spent 47% of their time watching Premier Sports content and 53% watching other
STV Player programming.
Audio
Planning began in May 2025 for STV Radio. We recruited an experienced team
including radio industry stalwart Graham Bryce, previously COO of Bauer Radio,
as MD of the station, alongside a new operational team and high calibre
line-up of presenters from across Scotland.
STV Radio launched across Scotland on 6 January on DAB, smart speakers and STV
Player, and the schedule includes an eclectic mix of music from the 80s, 90s
and 00s, competitions, listener chats, guests and live music performances
alongside news and weather updates.
Our first RAJAR performance figures for the station are due in August, but for
now the reaction from the media, listeners and advertisers has been positive
with good brand awareness and c.1m views across our dedicated social channels
in our first month.
Additionally, in October 2025, we launched our first podcast - The STV
Football Radio Show. The show is available on YouTube, STV Player and key
podcast platforms and is off to a strong start both in terms of consumption
and social engagement.
FINANCIAL HIGHLIGHTS
Set against the backdrop of challenging advertising and commissioning markets,
Group revenue fell by 6% to £176.9m (2024: £188.0m). Total advertising
revenue (TAR) for the year was £89.3m (2024: £99.7m), a decrease of 10% on
2024, with the biggest impact coming through national linear advertising,
which was down 16%.
Adjusted operating profit of £11.6m was down 44% on 2024, giving an adjusted
operating margin of 6.6% (2024: 11.0%). The reduction in margin was driven
by the decline in TAR, lower new format sales in Studios, and inflationary
pressures across the business, partly offset by cost savings. On a statutory
basis, operating profit was £3.8m (2024: £13.2m). Operating adjusting
items of £7.8m were charged in the year (2024: £7.4m) with full details in
note 6 to the condensed financial statements.
The Group announced a £5m cost saving programme in March 2024 and has taken
the action necessary to deliver that run rate by the end of 2026 as planned.
This plan was expanded in September 2025 with identification of a further £3m
in cost savings, predominantly from a reduction in headcount across the
organisation. Restructuring costs, being redundancy payments, of £1.7m have
been recognised as adjusting items in 2025. Restructuring costs of £1.0m in
the prior year were attributable to professional fees, redundancy costs and
loss on disposal of assets.
Loss before tax was £5.9m (2024: profit of £10.4m) after charging finance
costs of £8.8m (2024: £7.6m). The components of finance costs were (i)
interest on the Group's borrowings £3.6m (2024: £3.4m); (ii) non-cash
interest on lease liabilities of £0.5m in both years; (iii) net loss on
foreign exchange contracts of £0.7m (2024: gain of £0.4m); (iv) net interest
on the net deficit in the Group's defined benefit pension schemes of £2.4m in
both years; and (v) unwinding of the discount on put option liabilities
recognised in relation to business combinations £1.6m (2024: £1.7m). Items
(iv) and (v) are recognised by the Group as adjusting items.
Other losses of £0.8m (2024: gains of £4.8m) were recognised during the year
(within adjusting items) in relation to accounting for acquisitions achieved
in stages and revaluation to fair value of put option liabilities. Share of
loss of associates of £0.1m (2024: £nil) was recognised in the year.
The Group recognised a tax credit of £1.9m in the year (2024: £2.7m), driven
by high-end television tax credits receivable of £0.9m (2024: £3.9m) and
deferred tax credits in relation to losses carried forward.
The resultant loss for the year was £4.0m (2024: profit of £13.1m) with a
basic loss per share of 10.8p (2024: earnings per share of 23.5p). On an
adjusted basis, basic EPS was 13.1p (2024: 29.0p).
At year end, the Group had net debt under its revolving credit facility
('RCF') of £43.0m (2024: £28.8m). In addition, certain subsidiaries were
party to separate production financing facilities, which are non-recourse to
STV, in relation to specific programmes in production. Of the total production
financing facilities available of £2.4m, amounts drawn at the end of the year
were £2.3m. Amounts drawn under similar facilities at the end of 2024 of
£9.9m were fully repaid during the year, on delivery of the finished
programme.
At the balance sheet date, the Group had a £75m RCF in place and £15m
accordion, maturing in February 2028 and with a 2-year extension option
available that would extend maturity to February 2030. The principal financial
covenants are leverage and interest cover, which - except for the period from
March 2026 to March 2027 inclusive - must be less than 3 times and more than 4
times respectively. An amendment was agreed with lenders to temporarily amend
the covenant levels from March 2026 to March 2027 as the business recovers
from the significant downturn in 2025.
Leverage at the end of the year was 2.5 times (2024: 1.5 times) against a
covenant maximum of 3 times. Interest cover was 6.1 times (2024: 8.5 times)
against a covenant minimum of 4 times.
The IAS 19 accounting deficit of the Group's defined benefit pension schemes
reduced to £39.2m at the end of the year (2024: £48.3m). In September 2025,
the Group agreed a revised Schedule of Contributions with the Trustees that
ensures the same level of total contributions paid into the schemes over the
recovery plan period but with a rephasing of amounts payable from 2026 into
2027. The contingent cash mechanism previously in place has been paused
until completion of the next triennial valuation at the earliest, with no
further contingent payments required until then unless the Group and Trustees
agree otherwise.
REGULATORY
Reflecting broader trends, the average audience for our linear news output is
down 15% as people consume more news on digital platforms. We are seeking
approval from Ofcom to make changes to the news commitments in our licences,
enabling both north and central regions to share part of STV News at 6 whilst
retaining separate dedicated sections for each licence area. If approved, this
will enable us to protect our regional news output, expand our digital news
offering and ensure the service is sustainable for the future.
Full implementation of the 2024 Media Act will continue through 2026 and 2027,
with the key provision of ensuring that PSB services have prominence on
digital platforms hugely important for STV in making our services easy for
viewers to find.
The Advertising (Less Healthy Food and Drinks) Regulations came into force in
2026, meaning that advertising of this kind of produce is limited to
post-watershed with a total online ban for advertising of identifiable
products. We participated in the Less Healthy Food consultation around the
introduction of brand exemptions in 2025 and are pleased that this forms part
of the final regulation.
Consolidated income statement
Year ended 31 December 2025
2025 2024*
Adjusted results Adjusting Statutory results Adjusted Adjusting Statutory
Continuing operations items results items results
(note 6) (note 6)
Note £m £m £m £m £m £m
Revenue 5 176.9 - 176.9 188.0 - 188.0
Operating expenses (165.3) (7.8) (173.1) (167.4) (7.4) (174.8)
Operating profit 11.6 (7.8) 3.8 20.6 (7.4) 13.2
Finance costs
- borrowings (3.6) - (3.6) (3.4) - (3.4)
- defined benefit pension schemes - (2.4) (2.4) - (2.4) (2.4)
- lease interest (0.5) - (0.5) (0.5) - (0.5)
- other finance (costs)/income (0.7) (1.6) (2.3) 0.4 (1.7) (1.3)
Total finance costs (4.8) (4.0) (8.8) (3.5) (4.1) (7.6)
Other gains and losses 13 - (0.8) (0.8) - 4.8 4.8
Share of loss in associates (0.1) - (0.1) - - -
(Loss)/profit before tax 6.7 (12.6) (5.9) 17.1 (6.7) 10.4
Tax credit 7 0.4 1.5 1.9 (1.5) 4.2 2.7
(Loss)/profit for the year 7.1 (11.1) (4.0) 15.6 (2.5) 13.1
Attributable to:
Owners of the parent company 6.1 (11.1) (5.0) 13.3 (2.5) 10.8
Non-controlling interests 1.0 - 1.0 2.3 - 2.3
7.1 (11.1) (4.0) 15.6 (2.5) 13.1
Earnings per share
Basic 8 13.1p (10.8)p 29.0p 23.5p
Diluted 8 13.1p (10.8)p 29.0p 23.4p
*Presentation in the prior year has been updated to reflect the treatment of
HETV tax credits in the column for adjusting items for transparency
A reconciliation of the statutory results to the adjusted results is included
at note 6. The above consolidated income statement should be read in
conjunction with the accompanying notes.
Consolidated statement of comprehensive income
Year ended 31 December 2025
2025 2024
£m £m
(Loss)/profit for the year from continuing operations (4.0) 13.1
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit pension schemes 2.6 (0.3)
Deferred tax (charge)/credit (0.6) 0.1
Other comprehensive income/(expense) - net of tax 2.0 (0.2)
Total comprehensive (expense)/income for the year (2.0) 12.9
Attributable to:
Owners of the parent company (3.0) 10.6
Non-controlling interests 1.0 2.3
(2.0) 12.9
The above consolidated statement of comprehensive income should be read in
conjunction with the accompanying notes.
Consolidated balance sheet
At 31 December 2025
2025 2024
Note £m £m
Non-current assets
Intangible assets 10 35.0 36.5
Property, plant and equipment 11 7.1 6.8
Right-of-use assets 12 16.3 16.2
Investments 14 1.3 2.3
Deferred tax assets 15 19.8 19.5
Trade and other receivables 0.3 0.5
79.8 81.8
Current assets
Inventories 24.5 28.8
Trade and other receivables 43.7 46.3
Corporation tax recoverable 1.6 1.7
Cash and cash equivalents 12.3 11.1
82.1 87.9
Total assets 161.9 169.7
Equity
Ordinary shares 17 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 (322.4) (316.0)
Shareholders' equity (8.5) (1.9)
Non-controlling interests (9.6) (11.0)
Total equity (18.1) (12.9)
Non-current liabilities
Borrowings 16 55.3 39.6
Lease liabilities 16.9 16.6
Retirement benefit obligations 19 39.2 48.3
Deferred tax liabilities 15 3.2 3.8
Trade and other payables 10.7 15.2
125.3 123.5
Current liabilities
Borrowings 16 2.3 10.2
Trade and other payables 51.2 48.1
Lease liabilities 1.2 0.8
54.7 59.1
Total liabilities 180.0 182.6
Total equity and liabilities 161.9 169.7
The above consolidated balance sheet should be read in conjunction with the
accompanying notes.
Consolidated statement of changes in equity
Year ended 31 December 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 year - - - - - (5.0) (5.0) 1.0 (4.0)
Other comprehensive income - - - - - 2.0 2.0 - 2.0
Total comprehensive expense for the year
- - - - - (3.0) (3.0) 1.0 (2.0)
Net share based compensation - - - - (0.2) 0.3 0.1 - 0.1
Dividends paid (note 9) - - - - - (3.3) (3.3) - (3.3)
Changes in non-controlling interest - - - - - (0.4) (0.4) 0.4 -
At 31 December 2025 23.3 115.1 0.2 173.4 1.9 (322.4) (8.5) (9.6) (18.1)
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 year - - - - - 10.8 10.8 2.3 13.1
Other comprehensive expense - - - - - (0.2) (0.2) - (0.2)
Total comprehensive income for the year
- - - - - 10.6 10.6 2.3 12.9
Net share based compensation - - - - (0.3) 0.4 0.1 - 0.1
Dividends paid (note 9) - - - - - (5.1) (5.1) (0.6) (5.7)
Changes in non-controlling interest (note 13) - - - - - - - (7.6) (7.6)
At 31 December 2024 23.3 115.1 0.2 173.4 2.1 (316.0) (1.9) (11.0) (12.9)
The above consolidated statement of changes in equity should be read in
conjunction with the accompanying notes.
Consolidated statement of cash flows
Year ended 31 December 2025
*Restated
2025 2024
Note £m £m
Operating activities
Cash generated by operations 18 15.5 17.7
Interest and fees paid in relation to banking facilities (3.6) (3.3)
Corporation tax credits received 0.6 4.2
Pension deficit funding - recovery plan payment (10.2) (9.9)
Net cash generated by operating activities 2.3 8.7
Investing activities
Acquisition of subsidiary undertakings, net of cash acquired 13 (0.3) (1.1)
Purchase of shares in associates and other investments (0.6) -
Production finance provided to associates (0.1) -
Purchase of intangible assets (0.8) (0.7)
Purchase of property, plant and equipment (2.5) (0.7)
Net cash used in investing activities (4.3) (2.5)
Financing activities
Purchase of additional shares in subsidiary undertakings 13 - (4.4)
Payment of obligations under leases (1.6) (1.8)
Borrowings drawn 26.1 31.4
Borrowings repaid (18.0) (23.9)
Dividends paid to non-controlling interests - (0.6)
Dividends paid to equity holders (3.3) (5.1)
Net cash generated by/(used in) financing activities 3.2 (4.4)
Net increase in cash and cash equivalents 1.2 1.8
Net cash and cash equivalents, including overdraft balances, at beginning of 11.1 9.3
year
Net cash and cash equivalents, including overdraft balances, at end of year 12.3 11.1
* Details of the restatement are disclosed in note 2.
Notes to the preliminary announcement
Year ended 31 December 2025
1. General information
STV Group plc ("the Company") and its subsidiaries (together "the Group") is
listed on the London Stock Exchange, limited by shares, and incorporated and
domiciled in the UK. The address of the registered office is Pacific Quay,
Glasgow, G51 1PQ. The principal activities of the Group are the production of
content for UK and international commissioners, acquisition of content for
viewers of its linear broadcast and Video on Demand player, and the sale of
advertising airtime and space in these media.
2. Basis of preparation
The financial information set out in the audited preliminary announcement does
not constitute the Group's statutory financial statements for the year ended
31 December 2025 within the meaning of Section 434 of the Companies Act 2006
and has been extracted from the full audited financial statements for the year
ended 31 December 2025.
Statutory financial statements for the year ended 31 December 2024, which
received an unqualified audit report, have been delivered to the Registrar of
Companies. The reports of the auditors on the financial statements for the
year ended 31 December 2024 and for the year ended 31 December 2025 were
unqualified and did not contain a statement under either section 498(2) or
section 498(3) of the Companies Act 2006. The financial statements for the
year ended 31 December 2025 will be delivered to the Registrar of Companies
and made available to all shareholders in due course.
In the prior year, a £4.4m cash outflow in regard to put options exercised,
which did not result in a loss of control, was disclosed within investing
activities and has been updated in the current year to present within
financing activities.
The above change was prompted by an enquiry from the Corporate Reporting
Review team of the Financial Reporting Council (FRC) as part of its regular
review and assessment of the quality of corporate reporting in the UK. The
Group agreed to make the change above within the 2025 financial statements.
Going concern
At 31 December 2025, the Group was in a net debt position of £45.3m
comprising drawdowns under its revolving credit facility ("RCF") of £56.0m
and production financing facility of £2.3m, partially offset by unamortised
finance fees of £0.7m and net cash balances of £12.3m. 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 31 December 2025 was £19m under the
RCF plus the £15m accordion facility (31 December 2024: £30m plus £10m
accordion).
During the year, the Group has operated within its key financial covenants of
leverage (ratio of net debt to EBITDA) and interest cover, with limits of 3
times maximum and 4 times minimum, respectively. At 31 December 2025, the
Group's leverage was 2.5 times and its interest cover was 6.1 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 2025 as part of its process to review and approve the three-year plan
covering the period to 31 December 2028.
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 19).
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 2025. There were no
changes to accounting standards in the year that had any material impact on
the financial statements.
4. Financial risk management and financial instruments
The Group's activities expose it to a variety of financial risks: currency
risk, credit risk, liquidity risk and cash flow interest rate risk.
The carrying value of non-derivative financial assets and liabilities,
comprising cash and cash equivalents, trade and other receivables, trade and
other payables and borrowings is considered to materially equate to their
fair value.
5. Business segments
Information reported to the Group's Chief Executive for the purposes of
resource allocation and assessment of segment performance is by product. The
Group's operating segments are Audience (combining Broadcast and Digital
following merger of the businesses in H1 2025) and Studios.
Audience Studios Total
2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Sales 104.5 112.2 83.2 84.4 187.7 196.6
Inter-segment sales (10.6) (8.3) (0.2) (0.3) (10.8) (8.6)
Segment revenue 93.9 103.9 83.0 84.1 176.9 188.0
Segment result
Adjusted operating profit 12.5 19.3 3.9 6.1 16.4 25.4
Unallocated corporate expenses (4.8) (4.8)
Adjusted operating profit 11.6 20.6
Adjusting items in operating profit (note 6) (7.8) (7.4)
Statutory operating profit 3.8 13.2
Other adjusting items- finance costs (note 6) (4.0) (4.1)
Finance costs (4.8) (3.5)
Other gains and losses (note 6) (0.8) 4.8
Share of loss of associates (0.1) -
(Loss)/profit before tax (5.9) 10.4
Tax credit 1.9 2.7
(Loss)/profit for the year (4.0) 13.1
Adjusted operating profit (as shown above) is the statutory operating profit
before adjusting items and includes production tax credits receivable. Further
information is provided in note 6. Unallocated corporate expenses relate to
central expenses not attributable to divisions.
6. Adjusting items
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.
The table below sets out a reconciliation of the statutory results to the
adjusted results:
2025 2025 Basic 2024 2024 Basic
Operating profit (Loss)/ EPS Operating profit Profit before tax EPS
£m profit before tax pence £m £m pence
£m
Statutory results 3.8 (5.9) (10.8)p 13.2 10.4 23.5p
Acquisition and integration costs (i) - - 0.8 0.8
Restructuring costs (ii) 4.0 4.0 1.0 1.0
Amortisation and impairment of intangible assets (iii) 2.9 2.9 1.7 1.7
Production tax credits (iv) 0.9 0.9 3.9 3.9
IAS 19 finance costs (v) - 2.4 - 2.4
Other finance costs (vi) - 1.6 - 1.7
Other gains and losses (vii) - 0.8 - (4.8)
Adjusted results 11.6 6.7 13.1p 20.6 17.1 29.0p
Adjusting items within operating profit £7.8m (2024: £7.4m)
i) On 6 July 2023, the Group acquired Greenbird Media Limited.
Integration costs of £0.8m were charged in 2024 relating to the final
earn-out payable to founding members, professional fees and restructuring
costs.
ii) The Group announced a £5m cost saving programme in March 2024, which
was extended in September 2025 in response to continued challenging
advertising and content commissioning markets. Restructuring costs of £1.7m
were incurred in relation to these plans, primarily attributable to redundancy
costs. Restructuring costs of £1.0m in the prior year were attributable to
professional fees, redundancy costs and loss on disposal of assets.
In addition, restructuring costs were incurred following a review of the
unscripted label portfolio. No further investment will be made in Mighty
Productions with the investment carrying value written off in full (£1.1m)
and following the cessation of development activity in STV Studios
Entertainment, development stock of £0.8m has been written off. Loss on
disposal of a minority investment in Pi Productions Limited has been
recognised of £0.4m (2024: £nil).
iii) Following the acquisitions detailed in note 13, 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 year, resulting in a total charge of £1.8m (2024: £1.7m).
The basis of measurement of production intellectual property on initial
recognition was determined by reference to established retuning formats that
were expected to be recommissioned post-acquisition. As at 31 December 2025,
recommissioning of certain titles used in this assessment were considered
remote and therefore the associated carrying value attributable to these
titles has been impaired, resulting in a charge of £1.1m (2024: £nil).
Amortisation and impairment 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) The Group meets the eligibility criteria to claim tax relief on the
production of certain programmes created in its Studios division. 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 £0.9m recognised in the current period (2024: £3.9m) will be
claimed under the previous regime, and therefore has been adjusted in the
results.
Other adjusting items
v) 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) The Group recognised 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
£1.6m (2024: £1.7m) has been recognised in the year in relation to the
unwinding of the discount on these liabilities.
vii) Other gains and losses of £0.8m loss (2024: £4.8m gain) have arisen
in relation to (i) £0.1m gain (2024: £2.9m gain) from acquisitions achieved
in stages and (ii) £0.9m loss (2024: £1.9m gain) from acquired put option
liabilities being revalued to fair value at the balance sheet date. See note
13 for details.
7. Tax
2025 2024
£m £m
The credit for taxation is as follows:
Credit/(charge) for the year before adjusting items 0.4 (1.5)
Tax credit relating to adjusting items 1.5 4.2
Credit for the year 1.9 2.7
The deferred tax balances at 31 December 2025 have been stated at a rate of
25% (2024: 25%), which is the rate at which the temporary differences are
expected to unwind.
8. 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 year, excluding
ordinary shares purchased by the Company 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 all dilutive potential ordinary
shares. The Group has one type of dilutive potential ordinary shares namely
share options granted to employees. In the current year, potential ordinary
shares have been excluded from diluted EPS because they would decrease the
loss per share and be anti-dilutive.
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 year are detailed in
note 6 and presented below net of the related tax effect. Adjusted earnings
per share has been presented to provide shareholders with an additional
measure of the Group's year on year performance.
Earnings per share 2025 2024
Pence Pence
Basic earnings per share (10.8)p 23.5p
Diluted earnings per share (10.8)p 23.4p
Adjusted basic earnings per share 13.1p 29.0p
Adjusted diluted earnings per share 13.1p 29.0p
The following reflects the earnings and share data used in the calculation of
earnings per share:
Earnings 2025 2024
£m £m
(Loss)/profit for the year attributable to equity shareholders (5.0) 10.8
Adjusting items in operating profit (net of tax) 6.3 3.2
IAS 19 finance cost 2.4 2.4
Other finance costs 1.6 1.7
Other gains and losses 0.8 (4.8)
Adjusted profit for the year 6.1 13.3
Million Million
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings 46.0 45.9
per share
Dilution due to share options 0.2 0.1
Weighted average number of ordinary shares for the purposes of diluted
earnings per share
46.2 46.0
9. Dividends
2025 2024 2025 2024
per share per share £m £m
Dividends on equity ordinary shares
Paid final dividend 7.4p 7.4p 3.3 3.3
Paid interim dividend - 3.9p - 1.8
Dividends paid 7.4p 11.3p 3.3 5.1
The Board is not proposing any dividend in respect of the current financial
year in light of the uncertain trading environment. The Board will keep the
position under review.
10. Intangible assets
Goodwill Production Distribution Web Total
£m intellectual intellectual development £m
Property property £m
Cost
At 1 January 2025 20.3 12.1 5.0 3.7 41.1
Additions - - - 0.8 0.8
Acquisitions (note 13) 1.6 (0.5) - - 1.1
At 31 December 2025 21.9 11.6 5.0 4.5 43.0
Accumulated amortisation
and impairment
At 1 January 2025 - 1.7 0.5 2.4 4.6
Amortisation - 1.5 0.3 0.5 2.3
Impairment - 1.1 - - 1.1
At 31 December 2025 - 4.3 0.8 2.9 8.0
Net book value at
31 December 2025 21.9 7.3 4.2 1.6 35.0
Net book value at
31 December 2024 20.3 10.4 4.5 1.3 36.5
11. Property, plant and equipment
Plant, technical
equipment
and other Assets under construction
£m £m Total
£m
Cost
At 1 January 2025 23.6 0.3 23.9
Additions 1.4 1.1 2.5
Transfers 1.3 (1.3) -
Disposals (0.9) - (0.9)
At 31 December 2025 25.4 0.1 25.5
Accumulated depreciation and impairment
At 1 January 2025 17.1 - 17.1
Charge for year 2.2 - 2.2
Disposals (0.9) - (0.9)
At 31 December 2025 18.4 - 18.4
Net book value at 31 December 2025 7.0 0.1 7.1
Net book value at 31 December 2024 6.5 0.3 6.8
12. Right of use assets
Property Vehicles Total
£m £m £m
Cost
At 1 January 2025 24.0 0.3 24.3
Additions 1.6 - 1.6
Acquisitions (note 13) 0.1 - 0.1
Disposals (1.2) - (1.2)
At 31 December 2025 24.5 0.3 24.8
Accumulated depreciation
At 1 January 2025 8.1 - 8.1
Disposals (1.2) - (1.2)
Charge for the year 1.5 0.1 1.6
At 31 December 2025 8.4 0.1 8.5
Net book value at 31 December 2025 16.1 0.2 16.3
Net book value at 31 December 2024 15.9 0.3 16.2
13. 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 100% with 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 its work in relation to assessing the fair values of
identifiable assets acquired and liabilities assumed, therefore the amounts
presented below are considered final. There were no adjustments required to
the provisional values previously disclosed within the interim statement as at
30 June 2025.
Fair value of identifiable assets and liabilities of Flicker Productions Final
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 revenue of £0.5m and an
operating loss of £0.1m to the Group's results. If the acquisition had
occurred on 1 January 2025, Flicker would have contributed revenue of £0.6m
and an operating loss of £0.5m to the Group's results.
Hello Halo Productions Limited
During the year, 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 Provisional Adjustments Final
Limited and subsidiary company
£m £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)
Adjustments to non-controlling interest regarding put options 2.8 - 2.8
Goodwill 1.9 0.1 2.0
Consideration 1.8 - 1.8
£m £m £m
Present value of the expected liability on put options
2.8 - 2.8
Rumpus Media Limited
During the year, 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 Final
£m £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 year ended 31 December 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 to fair value at acquisition date - - 0.1 - 0.1
Revaluation of expected liability of put options to fair value as at (1.3) 0.5 - (0.1) (0.9)
31 December 2025
(1.3) 0.5 0.1 (0.1) (0.8)
Summary of acquisition related transactions for year ended 31 December 2024
Two Hello Halo Rumpus Greenbird Media Total
Cities
£m £m £m £m £m
Cash (outflow)/inflow
Consideration paid, net of cash acquired (0.4) (0.8) 0.7 - (0.5)
Deferred consideration paid - - - (0.6) (0.6)
Acquisition of subsidiary undertakings, net of cash acquired
(0.4) (0.8) 0.7 (0.6) (1.1)
Purchase of additional shares in subsidiary undertakings
- - - (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
7.1 2.8 - - 9.9
Adjustments recognised following finalisation of fair value of assets and
liabilities acquired
- - - (0.3) (0.3)
5.1 2.8 - (0.3) 7.6
Other gains and (losses)
Revaluation of initial investment held to fair value at acquisition date
2.3 0.8 (0.2) - 2.9
Revaluation of expected liability of put options to fair value as at 31 Dec
2024
1.0 - - 0.9 1.9
3.3 0.8 (0.2) 0.9 4.8
14. Investments
2025 2024
£m £m
Associates 0.5 2.1
Other 0.8 0.2
1.3 2.3
2025 2024
£m £m
Associates
At 1 January 2.1 3.9
Share of loss (0.1) -
Disposals (0.4) -
Impairment (1.1) -
Reallocations - (1.8)
At 31 December 0.5 2.1
During the year, the Group disposed of its minority stake in Pi Productions
Ltd resulting in a £0.4m write-off. In addition, and as detailed in note 6,
no further investment will be made in Mighty Productions with the carrying
value written off in full (£1.1m).
In 2024, minority investments were held in Two Cities Television Limited,
Hello Halo Productions Limited and Rumpus Media Limited, totalling £1.8m. The
Group's shareholding was increased to a majority stake in each of these
entities during the prior year, and the £1.8m investment value held in these
associates was reallocated to investments in subsidiaries and eliminated on
consolidation.
The Group also holds shares in Mirriad Advertising plc which has a nominal
fair value at the balance sheet date. This investment is measured at fair
value through the Consolidated Statement of Comprehensive Income.
15. Deferred tax asset
At 31 December 2025, total deferred tax assets of £19.8m were recognised on
the balance sheet (2024: £19.5m). Deferred tax liabilities of £3.2m (2024:
£3.8m) were also recognised, primarily relating to acquisitions from business
combinations. This results in a net deferred tax asset of £16.6m (2024:
£15.7m). Of this, £9.9m relates to the deficit on the Group's defined
benefit pension schemes (2024: £12.1m) and the balance of £6.7m relates to
tax losses, accelerated capital allowances and short-term timing differences
(2024: £3.6m).
16. Borrowings
Non-current borrowings
At the balance sheet date, the Group had a £75m revolving credit facility
(RCF) in place, with a £15m accordion, maturing in February 2028. Amounts
drawn under the RCF were £56.0m (2024: £40.0m) net of unamortised costs of
£0.7m (2024: £0.4m). The principal financial covenants are the ratio of net
debt to EBITDA (which must be below 3 times) and interest cover (which must be
higher than 4 times), with the exception of the period from March 2026 to
March 2027 inclusive when covenant levels were relaxed slightly. The ratio of
net debt to EBITDA varies between below 3 times and below 3.75 times, and
interest cover varies between higher than 4 times and higher than 3.5 times.
Current borrowings
The Group has one loan facility (2024: two) relating to production financing
of which £2.3m (2024: £9.9m) was drawn down at the balance sheet date. The
commissioned programme to which the facility at 31 December 2025 relates,
delivered at the end of 2025 with all amounts drawn down to be settled during
2026. The two facilities in place at end of 31 December 2024 have been fully
settled during 2025.
At 31 December 2024, there also existed borrowings under CBILS of £0.3m in
one of the Group's subsidiary companies, which was repaid in H1 2025.
17. Share capital
Number of shares (thousands) Ordinary shares Share
£m premium Total
£m £m
At 1 January 2025 and 31 December 2025 46,723 23.3 115.1 138.4
The total authorised number of ordinary shares is 63 million shares (2024: 63
million shares) with a par value of £0.50 per share (2024: £0.50 per share).
All issued shares are fully paid.
18. Notes to the consolidated statement of cash flows
2025 2024
£m £m
Operating profit 3.8 13.2
Adjustments for:
Depreciation and amortisation 6.1 6.1
Share based payments 0.1 0.1
Loss on disposal of assets 0.4 0.2
Impairment of assets 3.0 -
Decrease in inventories 3.7 8.0
Decrease/(increase) in trade and other receivables 1.8 (5.0)
Decrease in trade and other payables (3.4) (4.9)
Cash generated by operations 15.5 17.7
Net debt reconciliation
Net cash and cash equivalents, including overdrafts
Net debt including lease liabilities
RCF Production financing Net debt Lease liabilities
£m £m £m £m £m £m
At 1 January 2025 (39.9) (9.9) 11.1 (38.7) (17.4) (56.1)
Cash flows (14.8) 7.6 1.2 (6.0) 1.6 (4.4)
Non-cash movements (i) (0.6) - - (0.6) (2.2) (2.8)
At 31 December 2025 (55.3) (2.3) 12.3 (45.3) (18.0) (63.3)
(i) Non-cash movements relate to the amortisation of borrowing costs (for
long-term borrowings), borrowings recognised on acquisition, the acquisition
and additions of right-of-use assets and lease interest.
Net debt excluding production financing was £43.0m (2024: £28.8m).
19. Retirement benefit schemes
The Group operates two defined benefit pension schemes, the benefits of which
are related to service and final salary. The schemes are trustee administered
and the schemes' assets are held independently from those of the Group.
Pension costs are assessed in accordance with the advice of an independent
professionally qualified actuary.
The schemes are the Scottish and Grampian Television Retirement Benefit Scheme
and the Caledonian Publishing Pension Scheme. Both are closed schemes and
accounted for under the projected unit credit method.
Contribution rates to the scheme are determined by a qualified independent
actuary on the basis of a triennial valuation using the projected unit credit
method. The most recent triennial valuation was carried out as at 31 December
2023. This valuation resulted in a deficit of £61m on a pre-tax basis
compared to £116m on a pre-tax basis at the previous settlement date.
Deficit recovery plans end in October 2030, with the aggregate monthly
payments slightly lower than the previous recovery plans. The 2025 deficit
recovery payments totalled £10.2m, with annual payments then increasing at
the rate of 2% per annum over the term of the recovery plans. In September
2025, the Group agreed a re-phased Schedule of Contributions with the Trustees
as one of the cash protection measures implemented following the Group
reducing its short term revenue and operating profit forecasts. This ensures
the same level of contribution paid into the schemes over the recovery plan
period but with a rephasing of amounts payable in 2026 into 2027. The
contingent cash mechanism previously in place has been paused until at least
2028 with no further contingent payments required until then unless the Group
and the Trustees agree otherwise.
The recovery plans are designed to enable the schemes to reach a fully funded
position, using prudent assumptions about the future, by 2030.
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:
2025 2024
% %
Rate of increase in salaries nil nil
Rate of increase of pensions in payment 2.90 3.25
Discount rate 5.40 5.45
Rate of price inflation (RPI) 2.90 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 expectations of a pensioner retiring at age 65).
2025 2024
Retiring at balance sheet date:
Male 21.0 20.7
Female 23.0 22.9
Retiring in 25 years
Male 22.1 21.9
Female 24.0 24.0
The fair value of the assets and the present value of the liabilities in the
schemes at each balance sheet date was:
At 31 December 2025 At 31 December 2024
Quoted Unquoted Total Quoted Unquoted Total
£m £m £m £m £m £m
Equity and equity options 12.0 44.3 56.3 9.2 47.5 56.7
Alternative return seeking 11.0 18.6 29.6 8.0 24.2 32.2
Cashflow matching credit 0.2 85.4 85.6 1.7 61.9 63.6
Liability-Driven Investments and cash 119.8 (29.7) 90.1
147.5 (39.1) 108.4
Currency hedge - 0.3 0.3 - (0.1) (0.1)
Annuity policies - 9.5 9.5 - 10.0 10.0
Fair value of schemes' assets
143.0 128.4 271.4 166.4 104.4 270.8
Present value of defined benefit obligations
(310.6) (319.1)
Deficit in the schemes (39.2) (48.3)
A related, offsetting deferred tax asset for the Group of £9.8m (2024:
£12.1m) is included within non-current assets. Therefore, the pension scheme
deficit net of deferred tax for the Group was £29.4m at 31 December 2025
(2024: £36.2m).
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