The Local Radio Company (TLRC), which owns and operates 27 local radio licences across the UK, has issued a statement warning investors that it is currently “trading below plan” and is cautious on its prospects for next year.
TLRC’s prediction came as the broadcaster announced a year on year increase in sales of 24% for the 11 months to 31 August, translating to a 2% rise on a like for like basis. The increase compares with a rise of 19% year on year in the first six months of the year, and a 4% increase in like for like.
A statement from the company clarified the position, stating: “TLRC’s overall sales performance continues to be ahead of the sector and although trading is below original expectations, the business will be profitable for the year at the EBITDA level before profit on the sale of 50% of First Radio Sales and exceptional costs, including reorganisation expenses.”
However, the company also stated that start up costs for three new local radio licences won since flotation, combined with persisting tough conditions in advertising markets, mean it must be “cautious about the outlook for next year.”
Earlier this year saw First Radio Sales, a subsidiary of TLRC, win the representation contract of the Kent Messenger Radio (KM) group of stations, giving the company an additional six stations and increasing its coverage to 92 UK radio stations (see First Radio Sales Wins Representation Of Kent Messenger Radio Groups).
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