Sharewatch: UBC Buoyed By Increasing Profits

UBC Media, the UK’s largest independent radio production company, was seen in the spotlight yesterday with shares rising by a healthy 3.92% to close at 487˝ as it announced increased profits and rising turnover in a strong set of interim results.

The company’s interim statement for the six months to 30 September reveal a turnover of £7.15 million, up 9.8% on the same period last year, while profit before Goodwill Amortisation and Development Expenditure rose by 262.5% to £551,000 in the same period (see UBC Profits Rise As Digital Revenues Revealed).

Meanwhile, rival radio group GWR proved less fortunate with shares dipping by 1.53% to close at 242p ahead of today’s announcement that pre-tax profits had risen by 12% to £6.9 million in the six months to 30 September 2004. However, the company warned that conditions in the radio advertising market remain tough.

Elsewhere, Cable & Wireless sank 1.28% lower after Credit Swisse First Boston said price competition in the UK was neutralising the impact of cost cutting measures at the cable company. The broker cut its rating to ‘underperform’ from ‘neutral’.

The wider financial market was subdued yesterday with the key FTSE 100 index closing down 0.6% at 4,733 and the mid-cap FTSE 250 index dipping by 0.95 to 6,540.9. Trading volume was low at 2.3 billion shares.

The closing prices of media company shares on Monday were: