STV extends its banking facility

STV, the ITV broadcaster north of the border, said yesterday that it had renewed its £70m bank facilities for two more years at a cost of an extra £1m a year in interest charges.

The broadcaster said that the extension of its banking headroom through to the end of 2014, with an option to extend to 2016, meant that it now had the certainty to concentrate on negotiating the renewal of its two ITV licences in Scotland.

The licences are due to be completed by the end of next year.

Patrick Yau, an analyst at Peel Hunt, said the extra charge would trim earnings by 3 per cent this year and 2 per cent next.