Capital Radio and GWR Group have given separate trading statements for the first quarter of 2005 revealing that the merged group expects to maintain Capital Radio’s current dividend levels and that it will seek to grow its dividend cover over time.
In an update on the merger, proposed for May 9, Capital and GWR said; “integration planning is well under way with the senior management team confirmed for the merged group”.
Last week Capital and GWR announced that the merged group would be called GCap Media Plc (see Capital Radio And GWR Name Merged Group). The development of the new name involved input from both companies and the brand identity is currently being developed in-house at Capital Radio.
Capital forecast revenues to increase modestly in January to March 2005, resulting in a 1% decrease for the six months to March 31 2005, year on year.
Meanwhile, GWR predicts UK revenues to be flat for the 12 months ending March 31 2005, compared with the previous year. In the quarter ended March 31 2005, the Group expects like for like revenues to be down by 1% year on year.
Commenting on this important stage in the merger process, Ralph Bernard, executive chairman of GWR said: “We are close to completing the deal which will create the UK’s leading radio group. GCap Media will soon be seeking to compete head to head with the BBC for audiences.”
He continued: “This is a pivotal time for commercial radio as advances in digital technology open up new opportunities. GCap Media will have a greater scale and the financial resources to put it in a position to take full advantage.”
David Mansfield, chief executive of Capital Radio added: “During the past few months the senior management teams of Capital Radio and GWR have been working hard developing our integration plans. Having now met our new colleagues from GWR, it is clear that the breadth of talent, drive and initiative of GCap Media’s people will be the foundation of our future success.”
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