In a candid presentation to key agencies ahead of today’s formal results announcement, GCap Chief Executive, Ralph Bernard focused on the bold, strategic changes that his “root and branch” review of the company had led him to. “We have completed a restructure designed to cut costs and revitalise the company, “he said. “Our major shareholders have confidence in the management team, but we know our audience and profit levels are currently unacceptable, and in no way reflective of GCap’s real potential.”
“It’s a tough radio marketplace, but there is the opportunity now to be ground-breaking,” he said, in reference to the many initiatives announced today. “.
The numbers were revealed at the formal city announcement this morning. GCap said its operating profit in the six months to the end of September was down 27% to £14.7m, while revenues were also down, by 11%, at £111.6m.October revenues were down 6 percent, November down 5 percent. The company’s shares dropped 12 percent to 300 pence in early trade
Bernard re-iterated the company’s decision to seek a judicial review of Ofcom’s decision to award another national multiplex. “It is a breach of what they told us when we initially invested heavily” (in the multiplex licence).
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 (see GCap Media Begins Trading). The High Court cleared the way for the two companies to merge, 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.”
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