STV Group Full Year Results to 31 December 2025

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 [e-mail].

Enquiries:

STV Group plc:                  Kirstin Stevenson, Head of Communications       Tel: [phone]

Camarco:                           Geoffrey Pelham-Lane, Director                             Tel: [phone]

                                            Ben Woodford, Director                                           Tel: [phone]

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*
Continuing operations		Adjusted results	Adjusting  items (note 6)	Statutory results	Adjusted results	Adjusting  items (note 6)	Statutory results
	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

	Share capital	Share premium	Capital redemption reserve	Merger reserve	Other reserve	Accumulated losses	Attributable to owners of the parent	Non-controlling interest	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

		2025	*Restated 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 year		11.1	9.3
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 Operating profit £m	2025 (Loss)/ profit before tax £m	Basic EPS pence	2024 Operating profit £m	2024 Profit before tax £m	Basic EPS pence
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 £m	2024 £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
Number of shares	Million	Million
Weighted average number of ordinary shares for the purposes of basic earnings per share	46.0	45.9
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 £m	Production intellectual Property	Distribution intellectual property	Web development £m	Total £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 £m	Assets under construction £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 Limited	Final £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 Limited and subsidiary company	Provisional £m	Adjustments £m	Final £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 £m	Adjustments £m	Final £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 Cities	Hello Halo	Flicker	Greenbird Media	Total
	£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 31 December 2025	(1.3)	0.5	-	(0.1)	(0.9)
	(1.3)	0.5	0.1	(0.1)	(0.8)

Summary of acquisition related transactions for year ended 31 December 2024

	Two Cities	Hello Halo	Rumpus	Greenbird Media	Total
	£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 £m	Share premium £m	Total £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

	RCF	Production financing	Net cash and cash equivalents, including overdrafts	Net debt	Lease liabilities	Net debt including 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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