12th Sep 2005 07:02
Local Radio Company PLC (The)12 September 2005 12 September 2005 The Local Radio Company Plc Creation of a new force in radio sales, Trading update and business restructuring National sales agreements The Local Radio Company Plc ("TLRC") has entered into an agreement with UlsterTelevision plc ("UTV") regarding the national and regional advertising sales ofthe 17 local commercial radio licences that UTV acquired when it purchased TheWireless Group. TLRC has entered into a representation contract for these stations through itssubsidiary, First Radio Sales ("FRS"). These stations were previouslyrepresented by Impact Radio Sales. In addition to entering into this contract, TLRC and UTV have agreed that FRSwill become a jointly owned venture with TLRC transferring a 50% stake in FRS toUTV in return for the contract and a cash payment of £500,000. The enlargedbusiness will start trading on 3 October 2005. Under this agreement FRS will now represent 113 local radio stations across theUK accounting for 46.6 million hours per week, which is 13% of all localcommercial listening. FRS will also become the second or third largest radiosales point in each of the main TV regions outside London. Richard Wheatly will be Chairman of the jointly owned venture and Neil Webster,currently Managing Director of TLRC's FRS operation, will be Managing Directorof the new, enlarged operation. Commenting, Richard Wheatly, Chief Executive of TLRC, said: "This joint venturewill be a compelling force in the national radio sales market providing clientswith a fantastic buying opportunity for local radio. We are delighted to beworking closely with the team at Ulster." Scott Taunton, Managing Director of UTV Radio, said: "The existing team in FRShave demonstrated the value of ILR stations to national advertisers. With theaddition of UTV's 17 stations and the integration of sales teams, I am confidentthat this proposition will be further strengthened." Trading update TLRC reports that sales for the 11 months to 31 August are up 24% year on year,2% up on a like-for-like basis. This compares with sales increases for thefirst six months of the year of 19% year on year, 4% like-for-like. TLRC's overall sales performance continues to be ahead of the sector andalthough trading is below original expectations, the business will be profitablefor the year at the EBITDA level before profit on the sale of 50% of FRS andexceptional costs, including reorganisation expenses. TLRC last week won its third new licence since flotation in Swindon. The startup costs of these three new businesses combined with the challenging conditionsin advertising markets, lead the Company to continue to be cautious about theoutlook for next year. Management changes and restructuring John Sanderson, 60, Managing Director of the Local Radio Company's radiodivision is to retire from the Company and will consequently step down from theBoard. His resignation is to be effective from 9 September 2005. He had intended to retire in the early part of next year, however this has beenbrought forward for personal reasons. Richard Wheatly said: "John has been a great support in the initial phases ofthe development of The Local Radio Company. We wish him well in his retirementfrom the Group." Following his departure the Company will restructure its local sales and radiomanagement operations to improve performance. Management responsibilities forthe radio business will be taken on directly by Chief Executive, RichardWheatly. - ENDS - For further information, please contact: Richard Wheatly, Chief Executive Alistair Mackenzie, Finance Director The Local Radio Company Tel: 020 7467 9045 Matthew Moth/Caroline Sturdy Madano Partnership Tel: 020 7378 7033 Notes to Editors: The Local Radio Company Plc was floated on AIM in May 2004 when it acquired the22 stations owned by Radio Investments Limited. It now owns 27 commercial radiostations, a 32.5% stake in The Bee (the station for Blackburn which willcommence broadcasting on 1 October 2005 on 107 FM) and 100% of Durham FM whichwill commence broadcasting in November 2005. It has also just been awarded thenew licence for Swindon, Now FM. Ulster Television plc acquired The Wireless Group plc in June 2005. The localcommercial ration stations of UTV include Signal FM, Swansea Sound, Pulse FM,Tower FM, Imagine FM, Radio Wave 96.5 FM, Wave 102 FM, Peak FM, Q96, 107.7 TheWolf, Wish FM and Wire FM. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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