Group revenue from continuing operations was down 2% to £120m, while the group reduced its debts by 12% to £29m. Capital said that operational savings of £2m made during the 12 months to September 30 are to be invested in additional marketing spend for 2003.
Despite the tough trading conditions, Capital reported improved performance from its Century stations and it reduced losses for its alternative rock station Xfm.
Capital said, notwithstanding the difficult advertising market conditions, it achieved improved revenue performance relative to the industry, which it said was helped by marketing efforts targeting its national advertisers.
David Mansfield, chief executive, said: "Despite a tough advertising market, Capital has improved its performance relative to the sector. In June, we actively decided to reshape our business and continue to invest for the long term. Our renewed focus and balance sheet strength leaves us well placed to benefit from the consolidation opportunities promised by the new communications bill. We have made important progress across the group and finished the year in a strengthened position for long-term growth."
Capital said it had already experienced a "testing start to our new financial year", with revenue across October and November likely to be down by around 8% year on year. Trading, it said, was still very short term, underlying its cautious outlook for advertising.
On a brighter note it said it was confident that sustained growth would return to the market over time and noted clear factors favouring the long-term growth of radio as an advertising medium.
"As the leading commercial radio group in the UK, Capital is well placed to benefit. We have market-leading brands and an experienced management team with a strategy focused on radio. Our national position is significant and our core 15- to 44-year-old audience is very attractive to advertisers," the company said.
The news forced shares in Capital down in early trading, falling 8.8% to 515p.
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