Local Radio Co on acquisitions hunt

The Local Radio Company has said that it is seeking to grow by acquiring other players in the radio sector.

The firm made the announcement as it reported an increase in revenue from continuing operations - £8.98m for the second half of 2007, up 7% from the same period last year.

Operating profit excluding depreciation, amortisation and some exceptional items came in at £153,000, compared to a loss of £1.8m in the year to September 30, 2006.

In a statement, the company's executive chairman Richard Wheatly said: "This year has marked a significant change in performance across the Group as a result of actions taken to underpin our strategy in a changing landscape for radio in the UK. Audiences, sales commission and revenues are all up and costs are down which has resulted in our first full year operating profit. This excellent result gives us renewed confidence in the potential for the local radio market.

'We are pleased that our revenue and bottom line performance for October and November are ahead of last year and December is tracking ahead. Whilst the outlook remains uncertain, we are confident and determined that the improvement in our performance will continue.

'There are a number of opportunities in the UK local radio market for consolidation and the Company's resilient performance in the recent challenging market conditions has underlined our ability to integrate stations under the Local Radio Company's umbrella, enabling them to benefit from operating synergies. The Board is aware of a number of ongoing market developments and is committed to its strategy to grow revenues through acquisitions which demonstrate clear value."