21 June 2010

UBC Media Group plc

UBC sells stake in regional multiplex and releases provision.

UBC Media Group (AIM: UBC, 'the Company'), the multimedia content and services company, has sold its 7.5% stake in MXR, the digital radio multiplex company, as part of its strategy to focus on the production of content and the development of interactive software. The stake was sold to Guardian Media Group for £136,000 in cash.  UBC will also receive a one-off cash dividend payment from MXR of £52,000.

As part of the agreement, UBC has also been released from its spectrum contracts that run to 2015 with MXR.  This has enabled UBC to release circa £400,000 of provision which had been made to cover this contract. 

The net impact in the current financial year will be a circa £400,000 one-off gain to net profit, a £136,000 gain to operating profit on the sale of the investment and a cash inflow of £188,000.

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About UBC Media  (www.ubcmedia.com)

UBC Media is a business to business provider of multimedia content and interactive software.  The Group provides content expertise across a wide range of platforms including commissioned radio programmes for networks such as the BBC, advertiser funded audio and video, media sponsorship and mobile advertising, along with interactive software for radio broadcasters and apps for mobile devices.  It is the UK's leading independent producer of radio programming.  

UBC consists of five operating divisions: Unique (radio production), Above the Title (radio and other Audio production), Smooth Operations (radio production), Lynx Content (marketing through content) and Unique Interactive (interactive software).

UBC is in a strong position to serve the rapidly growing and converging multi-platform media and wireless markets in ways that have potential to generate substantial earnings over the coming years. The Group's business model already generates highly visible revenues, such as long term radio commissions and monthly software fees.

UBC Media is listed on AIM (AIM: UBC), and is based in London, UK.