GWR said that pre-tax profit before goodwill and exceptional items rose to £8.6m for the year, up from £7.7m, an increase of 11.7%. Turnover at the group fell by 1% to £127.1m.
Net debt at the company has been reduced by £65m, but still stood at £99m for the year ending March 31 2003. The group has been disposing of its assets overseas and in the UK, selling its 49% stake in London News Radio to Chrysalis and its interest in DMG Radio Australia to the Daily Mail & General Trust.
Today, GWR announced further asset disposals, saying it had reach an agreement to sell its 49% stake in Vibe Radio Services to Scottish Radio Holdings for £17.64m, which already holds 51% of the company. This, in turn, will allow Vibe to buy dance music station Galaxy 101 Bristol.
Vibe has previously agreed a deal over the sale, but the Competition Commission blocked the takeover and said that it would not be given the go ahead unless GWR agreed to halve its share in Vibe and contract out advertising sales.
GWR has said that as well as selling its stake in Vibe, it will also terminate its contract to sell airtime for Vibe 101 and Vibe FM. This will now be carried out by Scottish Radio Holdings airtime sales division SIRS.
Shares in the company rose by 3.3% this morning on the news to 170.5p, up from yesterday's close of 165p.
At the same time, the company announced that it was disposing of its Hungarian assets for £18m, selling its station there to Advent International and Mezzanine Management Central Europe. It said it would use the money to reduce group debt. It has now completed a disposal of its overseas and non-core UK radio operations.
Ralph Bernard, executive chairman of GWR, said: "GWR has delivered its plan despite market conditions. We have reduced debt, disposed of non-core assets, reorganised and restructured our UK business and developed digital radio.
"The current year has started well and to budget. We will see both the operational and financial benefits of the actions taken last year enhance the performance of the group this year. The group as a whole is stronger and better positioned to take advantage of any upturn in our markets."
GWR said that local radio business had begun the new financial year well, but that the advertising market has remained uncertain.
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