Smith And Davis Leave GCap Media
GCap Media has revealed a number of changes concerning the structure of its management, with commercial director Linda Smith, and operations director Paul Davis both leaving the company while Duncan George, operations director now assumes responsibility for all operational aspects of the business, including content and commercial areas.
According to the group’s trading statement, published this morning, the merger between Capital Radio and GWR created £25 million of annualised gross merger synergies, a significant increase of their earlier estimates of £7.5 million and resulting in on expected £8 million of gross cost savings in the current financial year.
The Board plans to reinvest some of these savings back into the business, focussing primarily on improving the quality of its analogue assets.
GCap anticipates its revenues for the third quarter of 2005 to decrease by 8% year on year, continuing the downwards trend from the last quarter, which saw revenues drop by 11% compared to the same quarter in 2004. These figures are predicted to result in revenues for the six months ending 30th September 2005 being down by 9% year on year.
Commenting on the announcements, Ralph Bernard, chief executive of GCap said: “Since the launch of GCap Media in May there has been a thorough review of the cost base of the company at a level of detail not possible earlier.”
He continued: “As a result of this review, we are able to announce the potential for significant further cost savings. In addition to enhancing the benefits for shareholders, we are also investing in our analogue assets to attract more listeners and create value for advertisers whilst prudently investing in our digital future.”
GCap intends to give a detailed presentation regarding the outcome of the Group’s strategic review in November.
GCap Media formally began trading in May, creating a single broadcaster with combined airtime sales accounting for nearly 40% of the UK’s commercial radio market, based on total listening hours.
The High Court cleared the way for the two companies to merge earlier in the month, with GWR issuing a statement to the city explaining: “The High Court has made an order sanctioning the scheme of arrangement between GWR and the holders of Scheme Shares and confirming the related reduction of share capital of GWR.”
GCap Media: 0207 663 7000 www.gcapmedia.com