SMG said today it plans to float Virgin Radio and focus on its TV and content production businesses after reporting a 50 per cent fall in full-year pre-tax profit.
SMG's full-year adjusted pretax profit fell to £10 million from £20 million in 2005, while revenue was down 8 per cent at £147.3 million
New Chief Executive Rob Woodward, previously commercial director of broadcaster Channel 4, strongly criticised the group's previous strategy and its execution but said the company could be turned around.
SMG, which operates most of Scotland's commercial TV network, said the advertising climate in the United Kingdom had remained difficult in 2006, hurting its performance in TV and cinema, but it was cautiously optimistic for the year ahead.
The group also said it had halted the sale of its outdoor advertising business Primesight as it judged the prices it had been offered to be too low.
The announcement was the first under the group's new management, appointed in February following a request from activist investor Hanover Investors Management.