SMG, the Glasgow based media group, broadcast a strong message to the City yesterday, saying it has cut debt by £110m, trimmed costs and its full-year outlook remains unchanged.

The company, long burdened by debt, provided shareholders with a trading update at its annual meeting, telling them that it has a strong platform from which to outperform in difficult market conditions.

"As I mentioned in our preliminary results six weeks ago, 2007 was a transformational year in which we built a financially stable SMG that can now develop its unique broadcasting assets and deliver the growth strategy we have promised," said Richard Findlay, the group's chairman.

He added: "The board and I remain totally committed to executing our strategy and delivering value for shareholders."

SMG announced a strategic turnaround in 2007, pledging to focus on its core business of television and content production and sell off non-core assets.

Chief executive Rob Woodward told The Herald in an interview that the company had cut its debt load by £110m to £43m in a move that should please big City investors.

SMGs shares have shed value on the back of boardroom turmoil and takeover deals that raised the firm's debt levels. Yesterday, they closed London dealing unchanged at 11.5p. Earlier in the day, they had fallen by as much as 6% on news the company's radio and cinema and divisions did not perform as well as television.

Findlay said SMG's core television business is progressing well and the group said it has already made substantial reductions in its cost base.

The company's stv platform has continued to outperform the ITV network since April 3, both in national and in regional sales, with regional sales expected to continue with double-digit growth in May and June.

However, there has been some volatility in radio, with first-quarter growth of 5% but a weaker second quarter.

In cinema, first-quarter revenues were down 10% and this trend continued in April and May, but the group said it expects a stronger summer film slate to deliver growth of 18% in June.

SMG said it is still looking at options for its advertising business, Pearl & Dean, with the current review by the Office of Fair Trading creating a more positive environment for the disposal.

The sale process of Virgin Radio continues to progress, Findlay said, but gave no precise date for a completion of the deal.

Absolute Radio has been linked in media reports with a £60m bid for Virgin Radio, and analysts at Numis Securities said this could result, if successful, in net proceeds of £52m after costs of the transaction and pension contributions, with about £30m returning to shareholders.

The Numis analysts said in a note they did not expect to change their full-year estimates despite Findlay's negative comment on the radio and cinema markets.

"We believe the cost savings undertaken by the new management team provide a cushion should the UK advertising environment deteriorate in the second half," they said.

Woodward said SMG is bringing Alan Clements, husband of BBC presenter Kirsty Wark, on board in September to boost its television production. Clements has considerable experience in producing high-quality television shows.