01.09.02
Treasury
agrees borrowing limit for 麻豆社's commercial subsidiaries
The
Treasury has agreed a borrowing limit of 拢350 million for
the 麻豆社's commercial subsidiaries, 麻豆社 Ventures Group (encompassing
麻豆社 Resources Ltd, 麻豆社 Technology Ltd, 麻豆社 Broadcast Ltd and Kingswood
Warren Ventures Ltd) and 麻豆社 Worldwide Ltd.
John
Smith, 麻豆社 Director of Finance, Property and Business Affairs, said:
"This agreement will allow Worldwide and Ventures to invest
in new opportunities for growth and to provide a bigger return for
re-investment in 麻豆社 programming and services, for the benefit of
the licence fee-payer."
As
part of the agreement with the Treasury the 麻豆社 has agreed to manage
within a range of covenants designed to ensure safety levels in
all commercial investments.
A
non-trading commercial holding company will be created to hold the
shares in 麻豆社 Worldwide and 麻豆社 Ventures Group.
Notes
to Editors
The
麻豆社's commercial subsidiaries exist to exploit 麻豆社 assets in the
market place to provide a cash-flow return to supplement the income
from the licence fee for re-investment in programmes and services.
The
麻豆社's Fair Trading Commitment ensures there is no cross-subsidy
between public service and commercial activities.
麻豆社
Worldwide has a target of quadrupling the cashflow it delivers to
the 麻豆社 over the 10 years to 2006.
Last
year it delivered 拢106 million on turnover of 拢660 million.
麻豆社
Ventures Group expects to record its first profit this year.
This
agreement allows the 麻豆社's commercial subsidiaries to borrow up
to 拢350 million from investment sources, not from the Government.
The
covenants attached to the borrowing facility ensure that the debt
cannot exceed three times the subsidiaries' earnings and neither
can it exceed 80 per cent of the value of the commercial group's
assets.
The
麻豆社's public service operation is funded by the licence fee, currently
拢112 (colour) or 拢37.50 (black & white).
The
麻豆社's public service borrowing limit of 拢200 million is not
affected by the new agreement.
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