The PLC issued a statement regarding “media speculation” about its possible interest in the sale process for TMG and associated titles, including The Spectator magazine.  

A ‘for sale’ sign was hoisted over TMG earlier this year after Lloyds Banking Group took control of parent company B.UK. Ltd and appointed receivers from Alix Partners, following a long-running dispute over loan repayments.

Today (10 August) National World stated: “As the company has previously announced, its growth strategy is rooted in actively exploring opportunities to build its business through acquisitions and implementing its new operating model for owned assets.

“The board continues to evaluate accretive opportunities to grow the business and will consider participating in a sale process for Telegraph Media Group as and when such a process formally commences. There can be no certainty that an acquisition will take place nor as to the terms of such an acquisition.”

TMG has just posted results for the 52 week period ending 1 January 2023. Sales increased from £245m to £254.2m, while operating profit before exceptionals improved from £33.3m to £40.1m.

The directors commented: “This substantial improvement is driven by the significant growth in digital subscription revenue, partly offset by the decline in advertising and circulation revenues and substantial newsprint paper cost increases.”

Total subscriber numbers nudged up 2% to 734,000. TMG has set a strategic goal of reaching 1m subscribers.

Print subs revenues rose by 4% to £71.6m, while digital subs jumped 31% to £57.9m.

Print advertising was down £7.8m, and newsstand sales slipped by £3.3m.

TMG said the day-to-day running of all the operating subsidiaries of B.UK. would continue as normal.

However, the situation regarding the currently unknown outcome of the sale process made it necessary for the accounts to include a material uncertainty note.

The directors stated: “The directors are not aware of any current concerns about the ability of the company to operate as a going concern after a potential sale.

“But the fact that the directors do not have information about the identity or future plans of potential new owners, including any financing arrangements, indicates a material uncertainty which may cast significant doubt on about the company’s ability to continue as a going concern.”

The situation at the ultimate parent company also resulted in an unusual note regarding control of the business.

It stated: “The company’s immediate parent is Press Acquisitions Ltd… the directors understand that Press Acquisitions Ltd’s ultimate shareholder is the Sir David and Sir Frederick Barclay Family Settlements.

“The directors do not consider the ultimate beneficial owners of the company to have changed but it is noted that Mr Alastair Beveridge and Mr Benjamin Browne of Alix Partners Services UK were appointed as receivers over the shares of B.UK. Ltd (incorporated in Bermuda) on 15 May 2023.

“The receivers control the voting rights in respect of the shares of B.UK. Ltd and therefore have indirect shareholder control of the company [TMG], should they choose to exercise it.”

Other possible buyers mooted have included Germany’s Axel Springer, continental media group Mediahuis, Daily Mail owner DMGT, and billionaires keen to acquire a so-called “trophy asset”.

Last month Lloyds Banking Group brought in tech veteran Mike McTighe to oversee the sale process.