Catalyst Media Group PLC Dividend approved by SIS (6601F)

TIDMCMX

RNS Number : 6601F

Catalyst Media Group PLC

29 July 2016

29 July 2016

Catalyst Media Group plc

("CMG" or the "Company")

Dividend approved by SIS

The Board of CMG is pleased to announce that Satellite Information Services (Holdings) Limited ("SIS"), in which CMG is a 20.54% shareholder, has today made the following statement to its shareholders regarding the approval of a dividend to shareholders of GBP20.0 million:

"Following the progress made on securing the long term low margin business model and diversification strategy over the past 18 months the Board of Satellite Information Services (Holdings) Limited ("SIS") has approved a dividend to shareholders of GBP20.0 million to be paid today. The success of SIS in signing new media rights deals under the new model without significant upfront payments has freed up cash within the business to facilitate the dividend.

The dividend is the first dividend to be paid since a small dividend was declared in December 2014 and represents a catch up in the distribution of profits to shareholders from the existing contracts for media rights prior to the low margin contracts commencing.

The Board of SIS is satisfied with the progress made in moving to the low margin low risk model and diversified business, however it notes that the process is not as yet complete. Once SIS is fully operating on the new business model the Board of SIS expects significantly lower dividend payments to its shareholders."

Accordingly, the dividend payable to CMG will amount to GBP4,108,000. The Board of CMG will review the best use of these funds when received and will report to shareholders of the Company in due course.

Enquiries:

Catalyst Media Group plc

 
 Michael Rosenberg, Non-Executive 
  Chairman                           07785 727 595 
  Melvin Lawson, Non-Executive 
   Director                           020 7734 8111 
 
 Strand Hanson Limited 
  James Harris 
  Richard Tulloch                    020 7409 3494 
 

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No 596/2014.

This information is provided by RNS

The company news service from the London Stock Exchange

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DIVLIFETDRIAFIR

(END) Dow Jones Newswires

July 29, 2016 05:00 ET (09:00 GMT)