SMG to hive off Pearl & Dean

SMG, the media group that owns Virgin Radio and Scottish & Grampian TV, is disposing of its cinema advertising business Pearl & Dean.

The Glasgow-based group also intends to sell its outdoor business Primesight.

The group, which has been eyed as a take-over target in recent months, reported a 19% increase in first-half pre-tax profits, although turnover was down 7%.

Pearl & Dean generates 25% of cinema advertising revenues in the UK and the Republic of Ireland, through 989 screens at 315 cinemas. Primesight owns 13,500 six-sheet outdoor advertising panels across the UK and a further 141 large-format backlight panels, mainly in the London area.

The sale process has been initiated and the firm has appointed Hawkpoint Partners to act for it throughout the transactions.

SMG chairman Chris Masters says: “SMG’s future strategy is firmly based on strong television, radio and online brands, exciting content and close connection with our audiences.

“Having reviewed the Group’s businesses, the Board believes that, while Pearl & Dean and Primesight are excellent advertising businesses, they are no longer core to the Group.”