Unaudited condensed interim statement of cash flows

Six months ended 30 June 2026

 

		2026	2025
	Note	£m	£m
Operating activities
Cash generated by operations	19	5.3	16.2
Interest and fees paid in relation to bank facilities		(1.7)	(2.1)
Corporation tax credits received		2.6	0.7
Pension deficit funding - recovery plan payment		(0.9)	(5.1)
Net cash generated by operating activities		5.3	9.7
Investing activities
Acquisition of subsidiary undertakings, net of cash acquired		-	(0.3)
Production finance (provided to)/repayment from associates		(0.1)	0.1
Purchase of intangible assets		(0.3)	(0.4)
Purchase of property, plant and equipment		(0.1)	(1.5)
Purchase of shares in associate and other investments		-	(0.7)
Net cash used in investing activities		(0.5)	(2.8)
Financing activities
Payment of obligations under leases		(1.0)	(0.8)
Borrowings drawn		6.0	9.8
Borrowings repaid		(13.3)	(12.8)
Dividends paid to equity holders	11	-	(3.3)
Purchase of additional shares in subsidiary undertaking		(1.2)	-
Net cash used in financing activities		(9.5)	(7.1)
Net movement in cash and cash equivalents		(4.7)	(0.2)
Cash and cash equivalents, including overdraft balances, at beginning of period		12.3	11.1
Cash and cash equivalents, including overdraft balances, at end of period		7.6	10.9

 

 

		30 June 2026	31 December 2025
Cash and cash equivalents		12.9	12.3
Bank overdrafts		(5.3)	-
Cash and cash equivalents, including overdraft balances, at end of period		7.6	12.3

 

 

Unaudited notes to the condensed interim financial statements

Six months ended 30 June 2026

 

1.    General information

 

STV Group plc (the "Company") is a public limited company incorporated and domiciled in Scotland and listed on the London Stock Exchange.  The address of the registered office is Pacific Quay, Glasgow, G51 1PQ.

 

The principal activities of the Company and its subsidiaries (together "the Group") are the production of content for UK and international commissioners, operation of a radio and podcast business, 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. 

 

These condensed interim financial statements were approved for issue on 8 September 2026. They do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.  Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors on 17 March 2026 and delivered to the Registrar of Companies.  The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter and did not contain any statement under section 498 of the Companies Act 2006.

 

2.    Basis of preparation

 

These unaudited condensed interim financial statements for the six months ended 30 June 2026 have been prepared based on the accounting policies set out in the 2025 annual financial statements and in accordance with UK adopted IAS 34 and the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority.  These should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2025 which were prepared in accordance with United Kingdom adopted international accounting standards. The condensed interim financial statements and the annual report are available on the Group's website at www.stvplc.tv.

 

The annual financial statements for the year to 31 December 2026 will be prepared in accordance with United Kingdom adopted international accounting standards.

 

Going concern

At 30 June 2026, the Group was in a net debt position (excluding lease liabilities) of £42.9m comprising drawdowns under its revolving credit facility of £49.0m and production financing of £2.0m, partially offset by unamortised finance fees of £0.5m and net cash balances of £7.6m.  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 30 June 2026 was £26m under the RCF plus the £15m accordion facility (31 December 2025: £19m plus £15m accordion).

 

During the 6 months ended 30 June 2026 and to the date of these condensed financial statements, the Group has operated well within its key financial covenants of leverage (ratio of net debt to EBITDA) and interest cover. At 30 June 2026, the Group's leverage was 2.4 times (covenant max 3.75x) and its interest cover was 5.5 times (covenant minimum 4x).

 

As part of the going concern review, the Group considers forecasts of the advertising and commissioning markets to determine the impact on liquidity. The base case forecasts used by the Directors in performing this review reflect the updated forecasts used in the goodwill impairment testing (note 12), for the period relevant to the going concern review. As part of this exercise, the Directors reconsidered their assessment of principal risks and uncertainties as set down in the 2025 Annual Report & Accounts and concluded that those facing the business remain consistent, except for the 'market volatility and impact on revenue generation' risk. A full description of the changes the Directors have identified is shown in note 5.

 

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.

 

A severe but plausible downside scenario was identified that reflected crystallisation of several risks, principally in relation to the number and scale of programme commissions anticipated to be won and delivered in the period, and advertising revenues. 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 revised Schedule of Contributions agreed with pension trustees (note 20). 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 period that had any material impact on the financial statements.

 

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

 

4.    Judgements and estimates

 

Judgements

In the course of preparing the condensed interim financial statements, no judgements have been made in applying the Group's accounting policies that had a significant effect on the amounts recognised in the condensed interim financial statements, other than those involving estimation below.

 

Estimates

The preparation of the Group's condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, their accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

 

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the condensed interim financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

 

Inventory

Deferred programme production stock forms part of inventory and is stated in the financial statements at the lower of cost and net realisable value. The key assumptions are estimating the likely future revenues that associated programme costs are expensed in line with, and the discount rate applied. A detailed forecast of future secondary sales is prepared by management based on historic experience and expected future trends. The estimation process is complex due to the inherent risks and uncertainties associated with long-term forecasting. A different estimate of the projected future revenues, or a different discount rate, could result in a material adjustment to the projected value of the cash flows of the asset, and consequently result in a material adjustment to the carrying value of the asset in the next financial year. Due to market movements in H1 2026, the net realisable value of certain titles is expected to be lower than the carrying value and consequently has resulted in a £2.1m impairment charge (note 8).  In addition, £1.0m was expensed through the income statement in the period in the ordinary course of business (30 June 2025: £0.7m).

 

Pension obligations

The present value of pension obligations depends on several factors that are determined on an actuarial basis using a number of assumptions.  The assumptions used in determining the net cost/(income) for pensions include the discount rate, inflation and mortality rate. These assumptions are reviewed and updated at least bi-annually. A small change in these assumptions could materially impact the carrying amount of pension obligations in the next financial period.

 

The Group determines the appropriate discount rate at the end of each period.  This is the rate that is used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations.  In determining the appropriate discount rate, the Group considers the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension liability.

 

Regarding mortality, the base tables used are updated every three years (to coincide with triennial valuations) or more frequently when there is evidence of a change in experience.  The CMI tables relating to future improvements in mortality are updated when new information is available, usually annually. Other key assumptions for pension obligations are based in part on current market conditions. Refer to note 20 for further disclosure.

 

Goodwill

The Group has goodwill recognised in relation to acquisitions of production businesses between 2023 and 2025, attributed in full to the STV Studios cash-generating unit (CGU). The recoverable amount of the CGU has been determined by calculating its value in use and fair value less cost of disposal, with the higher amount being value in use. This is based on cash flow projections to FY30, prepared by the divisional Leadership Team and approved by the Board. The key assumptions on which the forecasts are based include revenue generation (including revenue from new commissions and returning series), production and operating margin achievable, and the applicable discount rate. These assumptions have been determined by using a combination of extrapolation of historic trends in the business, internal and industry estimates, and long-term growth rates in the primary markets in which the CGU operates. A long-term growth rate of 2.0% has been applied and a pre-tax discount rate of 12.1% has been used in discounting the projected cashflows.  This has resulted in impairment of goodwill of £16.9m charged in H1 2026. Refer to note 12 for further detail.

 

5.    Risks

a)    Principal risks and uncertainties

 

The Board considers that the principal risks and uncertainties affecting the business activities of the Group are consistent with those disclosed in the Company's Annual Report and Accounts 2025, except for the 'market volatility and impact on revenue generation' risk. This risk was disclosed as 'risk trend increasing' in December 2025 and has been updated in H1 2026 to reflect the potential impact of evolving dynamics in the commissioning market on the Studios division.

 

The risk description and potential impact have been updated to reflect recent announcements from major participants in the commissioning market of their intentions to reduce development and commissioning spend, and focus on in-house production, as part of their response to the increasing demand for content on social platforms. These factors combined mean that there could be fewer UK buyers of content from production businesses like STV Studios, fewer commissions being awarded, and price is likely to be under continued pressure.

 

We are managing this risk by ensuring our portfolio is best-placed to respond to market opportunities where they exist now and are likely to exist in the future. There remain strong genres, including scripted, where STV Studios has four labels and is well-placed to continue to compete successfully, and we have a number of returning series of unscripted programmes that continue to be popular with viewers and commissioners alike. The digital-first ambition and prospect is also clear, and we are in a process of 'test and learn' to understand options to maximise existing relationships and IP in that space. Thirdly, we are continuing to build relationships with international buyers and streamers, with our first drama for Netflix, The Witness, being the best-watched drama globally on their platform in H1 2026, The Mob soon to be released on Disney's Hulu (our first unscripted commission for the streamer), and Criminal Record s2 recently released on AppleTV+. Our announcement in April of a co-production arrangement with Kevin McKidd's Ferryman Films is another example of how we are looking to extend our international reach and appeal to reduce reliance on UK PSB for commissioning success.

 

In terms of governance and oversight, expanded reporting is being developed to better assess the range of potential financial outcomes for each label in the Studios portfolio, and new divisional KPIs have been rolled out across H1 2026 that enable us to more readily see progress against objectives in relation to production pipeline and success in international markets. Studios divisional leadership has strong relationships across the sector, with specific experience in this area also available through our Non-Executive Directors.

 

The other principal risks and uncertainties as listed below remain consistent:

 

·    Regulatory environment

·    Reliance on ITV for quality network programming and effective national sales

·    Changing viewing habits

·    Cyber-attack or data breach incident

·    Defined benefit pension scheme shortfalls resulting in increasing employer contributions

·    Recruitment and retention of people

Further details of the Group's policies on principal risks and uncertainties can be found in the annual report, a copy of which is available at www.stvplc.tv.

 

b)    Financial risk management and financial instruments

 

The Group's activities expose it to a variety of financial risks, to varying degrees: currency risk, credit risk, liquidity risk and cash flow interest rate risk. The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2025.  There have been no changes in any risk management policies since the year end.

 

6.    Seasonality of operations

 

In line with the UK advertising market, the autumn season provides the Group with its highest level of advertising revenues, as trading picks up from the quieter summer months. The Studios division delivers the majority of programmes to commissioners in the second half of the year.

 

7.    Business segments

 

Information reported to the Group's Chief Executive for the purposes of resource allocation and assessment of segment performance is by product. There have been no changes to the business segments of the Group since the year ended 31 December 2025, with financial reporting and management carried out for each of the two divisions: Audience and Studios.

 

	Audience		Studios		Total
Six months	2026	2025	2026	2025	2026	2025
	£m	£m	£m	£m	£m
Revenue
Sales	55.9	52.2	16.2	43.1	72.1	95.3
Intra-segment sales	(5.3)	(4.4)	(0.7)	(0.9)	(6.0)	(5.3)
Segment revenue	50.6	47.8	15.5	42.2	66.1	90.0
Segment result
Adjusted operating profit	11.1	9.1	(3.2)	-	7.9	9.1
Unallocated corporate expenses					(2.0)	(2.4)
Adjusted operating profit					5.9	6.7
Adjusting items in operating profit (note 8)					(26.4)	(3.4)
Adjusting items in finance costs (note 8)					(1.7)	(2.0)
Finance costs					(2.0)	(2.5)
Other gains and losses (note 8)					1.5	1.1
Share of loss of associates					-	(0.1)
Loss before tax					(22.7)	(0.2)
Tax credit / (charge)					0.4	(0.1)
Loss for the period					(22.3)	(0.3)

 

Adjusted operating profit (as shown above) is the statutory operating profit before adjusting items. For the period ended 30 June 2025, adjusted operating profit also includes High-End Television (HETV) tax credits receivable (note 8). The HETV tax credits relate solely to the Studios operating segment.

 

Other than the impact on total assets of the normal seasonality of operations, the significant change in total assets from the amount disclosed in the last annual financial statements is the impairment of goodwill and other assets in the Studios CGU. Refer to notes 8 and 12 for further details.

 

8.    Adjusting items and reconciliation of statutory results to adjusted results

 

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.

 

 

Below is a reconciliation of the statutory results to the adjusted results:

 

	2026			2025
	Operating (loss)/ profit	(Loss)/ profit before tax	Basic EPS	Operating Profit	(Loss)/ profit before tax	Basic EPS
	£m	£m	pence	£m	£m	pence
Statutory result	(20.5)	(22.7)	(45.8)p	3.3	(0.2)	(0.1)p
Impairment of assets (i)	25.4	25.4		-	-
Restructuring costs (ii)	0.2	0.2		2.0	2.0
Amortisation of intangible assets (iii)	0.8	0.8		0.9	0.9
HETV tax credit (iv)	-	-		0.5	0.5
IAS 19 net finance costs (v)	-	1.0		-	1.1
Other finance costs (vi)	-	0.7		-	0.9
Other gains and losses (vii)	-	(1.5)		-	(1.1)
Adjusted results	5.9	3.9	7.1p	6.7	4.1	7.1p

 

 

            Adjusting items within operating profit of £26.4m (2025: £3.4m)

 

(i)    Due to the combination of market factors and actual experience over recent months, the Board has reconsidered the short-to medium-term base case financial forecasts for the Studios division. While the base case from the previous plan remains within the range of possible outcomes, the Board now considers that it more likely sits towards the top end of the range and so has reconsidered a new, lower base case. This has resulted in the following impairment charges:

 

Asset	Carrying value before impairment	Impairment charge	Closing balance after impairment
	£m	£m	£m
IP Intangible assets	10.7	(2.5)	8.2
Deferred production stock	13.6	(2.1)	11.5
Development WIP	4.6	(3.9)	0.7
Total before goodwill	28.9	(8.5)	20.4
Goodwill	21.9	(16.9)	5.0
TOTAL	50.8	(25.4)	25.4

 

IP intangible assets were recognised on acquisition of Greenbird Media, with the associated fair value underpinned by expected future performance of several established returning series. Some of these titles are no longer expected to return and therefore the associated carrying value has been written down. This resulted in a £2.5m charge.

 

We have reviewed all titles included within deferred production stock and written down specific titles where, due to market movements in H1 2026, the net realisable value is now expected to be lower than the carrying value. This resulted in a £2.1m charge.

We have reviewed the level of development WIP across all labels and identified that the current heightened uncertainty in the commissioning market (commissioning processes protracted, fewer new commissions being tendered) means that the carrying value of assets is no longer supported by projected net realisable value. As such, we have written down this asset to the projected net realisable value, resulting in a charge of £3.9m.

 

Following a comprehensive impairment review, goodwill has been written down by £16.9m (note 12).

 

(ii)   Restructuring costs of £0.2m were incurred in the current period being the final redundancy cost associated with the Group's restructuring programme announced in September 2025. In H1 2025, restructuring costs related to the write down of investment in Mighty Productions (£1.1m), write down of development stock in STV Entertainment (£0.8m), and related one-off cash costs of £0.1m.

 

(iii)  The Group has previously undertaken fair value assessments of the assets acquired and liabilities assumed for subsidiaries acquired in prior periods. The fair value attributable to intellectual property has been amortised in the period, resulting in a total charge of £0.8m (2025: £0.9m). Amortisation of assets acquired through business combinations is excluded from the 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 HETV 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 Credit (AVEC) arrangement which is accounted for in a similar way to the alternative performance measure described above.

 

Due to the timing of expenditure for the relevant productions and the transition period between the regimes, a tax credit under HETV of £0.5m was recognised in the prior period.

 

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 £0.7m (2025: £0.9m) has been recognised in the period in relation to the unwinding of the discount on these liabilities.

 

(vii) An 'other gain' of £1.5m (2025: £1.1m) has arisen predominantly in relation to acquired put option liabilities being revalued to fair value at the balance sheet date. 

 

9.    Tax charge

				Six months 2026	Six months 2025
				£m	£m
The credit / (charge) for taxation is as follows:
Underlying charge for the current period				(0.7)	(0.9)
Adjustment in respect of prior periods				(0.1)	(0.1)
Charge for the period before adjusting items				(0.8)	(1.0)
Tax credit on adjusting items				1.2	0.4
High-end television tax credit				-	0.5
Credit for the period - adjusting items				1.2	0.9
Credit / (charge) for the period				0.4	(0.1)

 

The tax credit on the results for the six-month period is charged at the rate that represents the best estimate of the effective tax rate (ETR) expected for the full year, applied to the pre-tax result for the six-month period.

 

The deferred tax assets at 30 June 2026 have been measured using the rates that are expected to apply in the periods when the underlying timing differences, on which deferred tax is recognised, are expected to unwind.

 

10.  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 period, excluding ordinary shares purchased by the Group 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 the weighted average of dilutive potential ordinary shares.  The Group has one type of dilutive potential ordinary share namely share options granted to employees. In the current period, potential ordinary shares have been excluded from diluted EPS because they would increase the loss per share and be anti-dilutive.

                                                                                                                                      

The adjusted earnings per share figures that have 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 periods are detailed in note 8 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	Six months 2026	Six months 2025
	Pence	Pence
Basic loss per share	(45.8)p	(0.1)p
Diluted loss per share	(45.8)p	(0.1)p
Adjusted basic earnings per share	7.1p	7.1p
Adjusted diluted earnings per share	7.0p	7.1p

 

The following summarises the earnings and share data used in the calculation of earnings per share:

	Six months 2026	Six months 2025
Earnings	£m	£m
Loss for the period attributable to equity shareholders	(21.1)	-
Adjusting items in operating profit (net of tax)	24.2	2.5
IAS 19 net financing cost	1.0	1.1
Other finance costs	0.7	0.9
Other gains and losses	(1.5)	(1.1)
Adjusted profit	3.3	3.4
Number of shares	Million	Million
Weighted average number of ordinary shares in issue	46.0	46.0
Dilution due to share options	0.2	0.2
Total weighted average number of ordinary shares in issue	46.2	46.2

 

11.  Dividends

The Board is not proposing an interim dividend in respect of the current financial year in light of the ongoing challenging trading environment. The Board will keep the position under review.

 

A final dividend of £3.3m relating to the year ended 31 December 2024 was paid from the parent company's accumulated realised profits in May 2025.

 

12.  Intangible assets

				30 June 2026	31 December 2025
				£m	£m
Goodwill				5.0	21.9
Production intellectual property				5.6	7.3
Distribution intellectual property				2.6	4.2
Web development				1.5	1.6
				14.7	35.0

Goodwill

The Group has goodwill recognised in relation to acquisitions of production businesses between 2023 and 2025, which has been attributed in full to the STV Studios cash generating unit (CGU).

 

The commissioning market for long-form content is undergoing significant change in response to a continued challenging backdrop for advertiser-funded UK PSB commissioners and audience migration from traditional platforms to social video. Since the date of our 2025 annual report and accounts, the response of broadcasters and streamers has become more overt with announcements from key market participants being made. Advertising spend is shifting away from UK PSB broadcasters to international streamers, putting greater pressure on PSB finances and resulting in reduced commissioning spend, lower development budgets and prioritisation of in-house production. There is also a clear shift towards more "digital-centric" content strategies with streamers increasing their commissioning of social-first content.

 

The impact of these factors on STV Studios is very limited visibility over the short- to medium-term outlook as a result of slower decision-making on commissions across the board (new and returning series alike), less security over advanced developments or soft-greenlit projects, and much higher levels of competition for the limited number of available commissioning slots.

 

Therefore, the Board has reconsidered the base case financial performance of the CGU through a revised 3 year plan process, which reflects the current best estimate assumptions of management. This new plan was approved by the Board in August 2026. While the base case from the previous plan remains within the range of plausible outcomes, the Board now considers that it is more likely to sit towards the top end of the range (based on visibility and secured pipeline at the current time).

 

Management has performed an assessment of recoverable amount, considering both fair value less costs to dispose (FVLCD) and value in use (VIU). The VIU assessment extends the revised 3 year plan to 2030, with key assumptions based on revenue generation (including revenue from new commissions, returning series and secondary sales), production and operating margins achievable, and a long-term growth rate of 2% (Dec-25: 2%). A pre-tax discount rate of 12.1% has been used to discount the future cash flows (Dec-25: 12.0%). VIU was determined to be higher than FVLCD and so has been deemed to be the recoverable amount.

 

Under these assumptions, the VIU was determined to be £37.6m, resulting in a goodwill impairment of £16.9m. The resultant goodwill balance at 30 June 2026 is £5.0m (Dec-25: £21.9m). This impairment charge has been recognised in the interim consolidated income statement, as an adjusting item within operating profit. Should visibility improve in the second half and the near-term prospects for the CGU become clearer, under IFRIC10 it would not be possible to reverse any of the goodwill impairment recognised in these interim financial statements.

 

Sensitivity analysis

The key driver of the identified impairment is the lack of visibility over the short- to medium-term outlook, driven by external market factors, with the resultant impact being a lowering of management's best estimates for the CGU below the previous plan, based on current conditions.

 

The base case makes certain assumptions on the CGU securing commissions and therefore recognising cash flows in a specific financial year. Management has developed a number of alternative scenarios that allow for differences in the timing of securing commissions, and the number of potential commissions secured. Under a severe downside scenario, which assumed a 40% reduction in cash flows in FY30 relative to the base case, the goodwill impairment would have been £29m.

 

Following recognition of the impairment charge, VIU is now equivalent to the carrying value of the CGUs assets. Therefore, reasonably possible changes in key assumptions could result in further impairment in future reporting periods.

 

Intellectual property

An impairment charge of £2.5m has been recognised in the period, being £1.1m in relation to production intellectual property and £1.4m on distribution intellectual property (note 8). This is in addition to amortisation of £0.8m (2025: £0.9m) for the period, £0.6m for production IP and £0.2m for distribution IP.

 

Web development

During the six months ended 30 June 2026, the Group incurred expenditure of £0.3m on web development (£0.8m in the year to 31 December 2025; £0.4m in the six months ended 30 June 2025). There were disposals of £nil net book value in the current period and in the year ended 31 December 2025.

 

13.  Property, plant and equipment and right-of-use assets

 

During the six months ended 30 June 2026, the Group incurred expenditure of £0.1m on property, plant and equipment (£2.5m in the year ended 31 December 2025; £1.5m in the six months ended 30 June 2025).  There were disposals of £nil net book value in the current period and in the year ended 31 December 2025.

 

During the six months ended 30 June 2026, there were additions of £0.2m to right-of-use assets (£1.6m in the year ended 31 December 2025 and in the six months ended 30 June 2025). There were disposals of £nil net book value in the current period and in the year ended 31 December 2025.

 

14.  Deferred tax

 

At 30 June 2026, total deferred tax assets of £18.9m were recognised on the balance sheet (31 December 2025: £19.8m). Of this, £9.4m relates to the deficit on the Group's defined benefit pension schemes (31 December 2025: £9.9m) and the balance of £9.5m relates to tax losses, accelerated capital allowances and short-term timing differences (31 December 2025: £9.9m). Of the deferred tax asset relating to losses in the Studios division, £1.2m has been written off in the period following work underpinning the impairment testing of goodwill and the related conclusion that the balance was no longer considered recoverable.

 

At 30 June 2026, total deferred tax liabilities of £2.5m were recognised on the balance sheet (31 December 2025: £3.2m), primarily relating to liabilities recognised in regard to the acquisitions of Greenbird Media Limited and Two Cities Television Limited.

 

 

15.  Inventory

				30 June 2026	31 December 2025
				£m	£m
Deferred programme production stock				11.5	13.8
Programme production work in progress				19.3	10.7
				30.8	24.5

 

As part of the impairment review undertaken, £2.1m of deferred programme production stock and £3.9m of programme production work in progress was written off (note 8).

 

16.  Trade and other receivables

				30 June 2026	31 December 2025
				£m	£m
Trade receivables				19.1	14.3
Prepayments				8.0	6.4
Contract assets				8.6	7.1
Other receivables				12.3	16.2
				48.0	44.0

 

Amounts included in current assets				47.7	43.7
Amounts included in non-current assets				0.3	0.3
				48.0	44.0

 

17.  Borrowings

 

Non-current borrowings

At the balance sheet date, the Group had a £75m revolving credit facility ("RCF") with a £15m accordion. The RCF matures in February 2028 with a 2-year extension option in February 2027. Total borrowings at the balance sheet date under the RCF were £48.5m, made up of £49.0m facility drawings offset by £0.5m unamortised finance fees (31 December 2025: £55.3m, being £56.0m drawings offset by £0.7m unamortised finance fees). 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 during this period. The ratio of net debt to EBITDA at the end of June 2026 was 2.4 times (Dec 2025: 2.5 times) and interest cover was 5.5 times (Dec 2025: 6.1 times).

 

Current borrowings

The Group had a bank overdraft recognised at the balance sheet date of £5.3m (31 December 2025: £nil). The Group had non-recourse loans of £2.0m (31 December 2025: £2.3m) for production financing at the end of the period.

 

18.  Share capital

 

Issued share capital at 30 June 2026 and 31 December 2025 amounted to £23.3m relating to 46,722,499 ordinary shares with a par value of £0.50 per share. All issued shares are fully paid.

19.  Notes to the condensed interim statement of cash flows

 

	Six months 2026	Six months 2025
	£m	£m
Operating (loss) / profit	(20.5)	3.3
Adjustments for:
Depreciation on property, plant and equipment	1.1	1.0
Amortisation of intangible assets	1.1	1.2
Amortisation of right-of-use assets	0.8	0.8
Impairment of assets*	25.4	1.9
Share based payments	0.1	-
Increase in inventories	(12.3)	(8.5)
(Increase)/decrease in trade and other receivables	(6.1)	2.8
Increase in trade and other payables	15.7	13.7
Cash generated by operations	5.3	16.2

 

*Impairment of assets are included in adjusting items as explained in note 8

 

Net debt reconciliation

	Revolving credit  facility	Production financing	Net cash & cash equiv inc overdrafts	Net debt	Lease liabilities	Net debt inc. lease liabilities
	£m	£m	£m	£m	£m	£m
At 1 January 2026	(55.3)	(2.3)	12.3	(45.3)	(18.1)	(63.4)
Cash flows	7.0	0.3	(4.7)	2.6	1.0	3.6
Non-cash movements (i)	(0.2)	-	-	(0.2)	(0.4)	(0.6)
At 30 June 2026	(48.5)	(2.0)	7.6	(42.9)	(17.5)	(60.4)

 

Net debt excluding production financing was £40.9m (31 December 2025: £43.0m).

 

(i)    Non-cash movements relate to the amortisation of borrowing costs (for long-term borrowings), the additions of right-of-use assets and lease interest.

 

20.  Retirement benefit schemes

 

The fair value of the assets and the present value of the liabilities in the Group's defined benefit pension schemes at each balance sheet date was:

	At 30 June 2026	At 31 December 2025
	£m	£m
Defined benefit scheme obligations	(301.2)	(310.6)
Defined benefit scheme assets	263.6	271.4
Net pension deficit	(37.6)	(39.2)

 

The reduction in the net pension deficit is driven by Company contributions to the Schemes and actuarial gains. This has been offset by interest cost and admin expense recognised.

 

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:

	At 30 June 2026	At 31 December 2025
	%	%
Rate of increase in salaries	Nil	Nil
Rate of increase of pensions in payment	3.10	2.90
Discount rate	5.80	5.40
Rate of price inflation (RPI)	3.05	2.90

 

 

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 expectation in years of a pensioner retiring at age 65:
	At 30 June 2026	At 31 December 2025
Retiring at balance sheet date:
Male	21.2	21.0
Female	23.3	23.0
Retiring in 25 years
Male	22.3	22.1
Female	24.3	24.0

 

The sensitivities regarding the principal assumptions used to measure the defined benefit obligation are set out below:

 

Assumption	Change in assumption	Impact on scheme liabilities
Discount rate	Increase/decrease by 0.25%	Decrease/increase by 2%
Rate of price inflation (RPI)	Increase/decrease by 0.25%	Increase/decrease by 1%
Rate of mortality	Decrease by 1 year	Decrease by 4%

 

These sensitivities have been calculated to show the movement in the defined benefit obligations in isolation, and assuming no other changes in market conditions at the balance sheet date.

 

Funding arrangements

In September 2026, the Group agreed re-phased Schedules of Contributions for the Group's defined benefit pension schemes to more evenly spread the timing of payments across the remainder of the recovery plan period in December 2031. The next payment will be due in December 2027 (£8m), with £10m payable per annum thereafter. The contingent cash mechanism previously in place, which remains paused until 2028, will be reviewed as part of the 2026 triennial valuation process.

21.  Transactions with related parties

 

The Group provided advertising with an estimated fair value of £0.2m (2025: £0.1m) for nil consideration to the charity organisation STV Appeal. The charity purchased advertising from the Group for a total of £0.1m (2025: £0.1m).

 

 

 

Statement of Directors' Responsibilities and Cautionary Statements

 

Responsibility Statement

We confirm that to the best of our knowledge, these condensed consolidated interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

 

·    An indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·    Material related party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

 

Cautionary Statement

This report is addressed to the shareholders of STV Group plc and has been prepared solely to provide information to them.

 

This report is intended to inform the shareholders of the Group's performance during the six months to 30 June 2026. This report contains forward-looking statements based on knowledge and information available to the directors as at the date the report was prepared. These statements should be treated with caution due to the inherent uncertainties underlying any such forward-looking information and any statements about the future outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

 

The directors of STV Group plc are listed in the Annual Report and Accounts for 31 December 2025.

 

A list of current directors is maintained on the STV plc website: www.stvplc.tv

 

For and on behalf of the Board:

 

 

 

 

Lindsay Dixon

Chief Financial & Operating Officer

Date: 8 September 2026