Losses fell from £11.2m to £9.7m as full-year revenues grew by 22% to £39.7m, as reports claim that TalkSPORT chief executive MacKenzie's backer 3i has not yet come forward with a bid.
The radio company has attracted a number of potential buyers since MacKenzie's initial approach in February in concert with private equity house Veronis Suhler Stevenson, which was aborted when the latter pulled out.
However, reports this morning suggest that MacKenzie could have a fight on his hands as other unnamed potential bidders circle the radio group. The interest helped pushed shares up yesterday by 3.5p to 85p.
MacKenzie, TWG's chief executive and chairman, has been talking to 3i, but The Times claims that 3i has not come forward with a bid.
However, other potential buyers are in discussions with the independent directors. The industry believes Chrysalis is the most likely trade buyer, with venture capital groups also likely to be involved.
The company revealed improving financial performance as full year revenues climbed. The increase includes the extra revenue derived from local radio operator Forever Broadcasting, which was acquired in February 2004.
MacKenzie said that the year had started well, but he expected May's general election to cause a dip.
"The first quarter for 2005 has started well with cash revenues for the group up 9.9% against the same quarter in 2004. I expect national revenues will be affected in April by the General Election with some advertisers not spending until after the General Election in May," he said.
TWG provided an adjusted profit figure of £4.3m, which compares with £2.8m for 2003. The figure excludes a number of costs including £11.8m in goodwill amortisation, £700,000 legal costs relating to the court action against Rajar, £600,000 relating to uneconomic sports rights and £600,000 spent on GfK audience measurement research.
Operating profits were up at national station TalkSPORT from £1.2m to £2.6m and up at TWG's local radio stations from £5.6m to £6.8m. These figures exclude central costs, which increased from £4.7m to £5.1m.
Under statutory reporting rules, TWG made a loss of £9.4m. Net debt increased from £3.3m in 2003 to £5.7m.
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