Granada overhauls structure following falling ad revenues

Granada has unveiled a radical restructure of its operations

following disappointing interim results, which showed falling turnover

and a 5.4 per cent year-on-year downturn in national advertising


The media company, which was structured into four divisions (Granada

Broadband, Granada Creative, Granada Enterprises and Granada

Broadcasting) will now be split into only two operations.

Simon Shaps, the managing director of Granada Broadband, becomes the

managing director of Granada Content, which will house the creative and

broadband divisions. A managing director is now being sought for Granada

Platforms, which will incorporate the sales division, Granada

Enterprises and Granada Broadcasting.

Industry sources say Mick Desmond, the chief executive of Granada

Enterprises, is a strong internal candidate for the Granada Platforms

role, while Stuart Butterfield, the head of Granada Broadcasting, is

expected to leave later this year.

Steve Morrison, the chief executive of Granada, said: "Simplifying our

businesses into two clear divisions makes us stronger and fitter for

future growth."

Granada's chairman, Charles Allen, said that the company planned to cut

costs by pounds 60 million, which could see up to 100 jobs cut. He also

revealed that ONdigital, Granada's joint venture with Carlton

Communications, is willing to take on a third partner. It is believed

that three companies are in the frame: BT, Centrica and ntl.