Future remains uncertain for Virgin Radio as SMG profits drop

The future of Virgin Radio remains uncertain as owner SMG claims to have received “significant interest” in the station but also refuses to rule out a flotation.

The group announced that it planned to float the station this autumn in April but the plans has been delayed by the departure of chief executive Paul Jackson and problems in the credit market. The value of the group has also been decreased from £105m to £85m.

SMG made the comments as it announced a drop in pre-tax profits of £1m for the first half of the year compared to £8m for the same period last year. Revenue was flat at £89m.

It has also announced that Richard Huntingford has been appointed as executive chairman from October 1. He joined the station last month as non-executive chairman. SMG has also appointed David Connolly, the former vice chairman of Starcom and Ofcom contracts rights renewal adjudicator, as commercial director.

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