Chrysalis has reported turnover for all businesses of £155.2 million for the year ended 31 August 2005, with a loss of £9 million from 2004’s figure of £164.2 million due to operating losses and exceptional impairments relating to Chrysalis Books and a downturn in the radio advertising market.
Operating profit for the group was £28.4 million for the time period, with profit before interest and tax at £29.9 million and pre-tax profit at £29.9 million.
The group revealed a healthy start to the current financial year, with strong RAJAR results giving Chrysalis confidence for the rest of the year, while Chrysalis Music is focusing on profitable activities of its wholesale distribution arm, Music Publishing and Lasgo Chrysalis.
Commenting on the Group’s results, Richard Huntingford, chief executive of Chrysalis said: “2005 was a difficult year for the Chrysalis Group, reflecting advertising conditions in the UK and continuing problems with our Books division.”
He continued: “It was also a year, however, when we made significant progress in executing our stated corporate strategy, enabling us to enter the current financial year as a focused radio and music publishing and distribution business.”
Huntingford added: “Already the benefits of this renewed focus are clear. We have had a good start to the new financial year for both our radio and music divisions. Chrysalis Music has celebrated a No 1 album from David Gray and Chrysalis Radio has seen a return to positive revenue growth.”
Looking to the future, Chrysalis looks set to deliver shareholder value from its core music and radio divisions, with the market leading positions of its Heart and Galaxy brands underpinning revenue outperformance in 2006’s financial year.
Earlier this month, Chrysalis confirmed the sale of its loss-making books division to its management team for £12.5 million (see Chrysalis Sells Books Division For £12.3 Million).
The sale will see Chrysalis Books become part of the Anova Books Company, formed by the company’s chief executive and other senior managers of the division. The new company will also take on the outstanding debt owed by Chrysalis Books to the Chrysalis Group.
Related Links
