GCap revenues drop but it's in 'good shape'

GCap Media chief executive Ralph Bernard said the company is in good shape, despite showing a slump in profits.

For the year ending March 31, the media group's profits fell by over a third from £22.2 million to £14.4 million. Total revenue dropped 9% at £200.1 million compared with 2006, though without the £60 million sale of the Century stations, revenue it was down just 7%.

Bernard said the company's reduction of net debt by £49 million following the sale means GCap Media is in a better position to go forward.

The group plans to reduce outgoings by £5.5 million by cutting operational costs, and does not expect to make redundancies. It will also invest £5.6 million in interactive projects, new station launches and brand development.

Bernard said: "Moving forward the group will focus on brands with the greatest revenue potential across multiple platforms." These include the One Network and Capital 95.8, Classic FM, Xfm, Planet Rock, theJazz, and a proposed classic hits network. GCap will close Capital Disney and has said it will "cease to invest" in Core and Life.

The news comes as commercial director Duncan George has stepped down from the company without a job to go to. GCap has no plans to replace George, who was predicted to leave following ex-Virgin chief Fru Hazlitt's appointment as managing director of GCap London in January.

Elsewhere, GCap London station, Capital 95.8, is launching a new marketing campaign for its evening Bam Bam and Streetboy show, hoping to give Capital a younger and edgier image. London bus ads will show recognisable London icons, including a pigeon, a businessman and the Gherkin building, shouting the words "Bam Bam."