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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Carrefour | AQEU:CAP | Aquis Europe | Ordinary Share |
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RNS Number:0139S
Capital Radio PLC
13 November 2003
Preliminary results for the year ended 30 September 2003
13th November 2003
Underlying Financial Highlights
* Group revenue of #115.3m (2002: #120.0m)
* Group profit before taxation of #22.8m (2002: #27.8m)
* Strong cash generation: 110% (2002: 109%) of operating profit converted
into cash
* Strong balance sheet: net debt of #27.6m (2002: #29.0m) with interest
cover of 16x (2002: 19x)
* Earnings per share of 19.3p (2002: 23.5p)
* Total dividend at 18.5p (2002: 18.5p)
Statutory Results
* Profit before tax #13.3m (2002: #14.6m)
* Basic earnings per share of 7.7p (2002: 8.8p)
* Net cash inflow from operating activities #27.0m (2002: #30.1m)
Operating Highlights
* 7.7 million adult listeners across the UK - up 141,000 in the last
quarter
* London leadership maintained across portfolio of stations
* 95.8 Capital FM - management, format, and breakfast show changes
announced
* Significant successes outside London - record listeners and revenue for
Century
* Increased visibility with December forecasts indicating six months of
growth
David Mansfield, Chief Executive, commented:
Our stations broadcast in the most demanded advertising markets in the UK and in
spite of tough trading conditions we have enjoyed some notable successes. Our
Century network, acquired 3 years ago, is enjoying significant increases in both
listeners and revenues. In London, we are the clear commercial leader, with more
listeners than any of our commercial competitors. We are confident that the
management and programming changes at 95.8 Capital FM will reclaim listening
hours in the long term. With greater visibility and positive revenue forecasts
for the current quarter, we remain cautiously optimistic of early signs of an
improvement in the advertising market as a whole."
Enquiries:
Capital Radio plc
David Mansfield Chief Executive 020 7766 6240
Peter Harris Finance Director 020 7766 6257
Jane Wilson Director of Communications 020 7766 6863
Finsbury Group
Rupert Younger 020 7251 3801
James Leviton
'Underlying' results are presented to provide a better indication of overall
financial performance. The 'underlying' results exclude goodwill amortisation
and exceptional items. 'Underlying operating profit converted into cash'
represents underlying operating profit adjusted for movements in working
capital, non-cash items and capital expenditure net of depreciation expressed as
a percentage of underlying operating profit.
Preliminary results for the year ended 30 September 2003
13th November 2003
Brand strength and a solid national performance
Capital Radio plc, the UK's leading commercial radio group, today announces
preliminary results for the year to 30 September 2003.
Business Overview
Introduction
In the 12 months to 30 September 2003, advertising market conditions remained
difficult for the Group and the industry as a whole. During this challenging
period, we continued our strategy of building a portfolio of complementary
national brands with strong local appeal. Overall, the Group continues to lead
the UK local commercial radio market with more analogue listeners and a greater
share of listening hours than our commercial competitors.
We remain fully confident that this is the right strategy for long term growth,
however, we recognised this year that as part of the Capital FM Network, our
London flagship station 95.8 Capital FM, required greater creative and
programming focus at a senior level. We initiated structural, management and
programming changes to tackle increased competition and declining audiences,
that culminated in September with the announcement of Johnny Vaughan as the
station's new breakfast show presenter. We are confident that in time, these
moves will reverse the recent decline in audience figures at 95.8 Capital FM.
Across London, in an increasingly competitive marketplace, the Group maintained
its leadership position, supported by strong performances from the other brands
in our portfolio; Xfm, Capital Gold and Choice FM (19% ownership).
Outside London, we have seen particular success with the Century FM Network,
with 105.4 Century FM becoming the Northwest's leading commercial radio station.
With record reach and share across the network, our success with Century is a
prime example of the Group's ability to acquire and grow successful radio
brands. Our other radio brands, Capital Gold and Xfm, continue to perform well,
taking advantage of brand extension opportunities including CDs, events and
publications.
In the last 12 months, we have also restructured and strengthened our commercial
division with new, brand focused national and local teams now in place. We are
confident that these changes will have a positive effect on our commercial
operations.
Current Trading and Prospects
Whilst we are encouraged by recent signs of optimism in the media marketplace,
with industry forecasts for revenue growth of approximately 5% in the year to
September 2004, we remain cautious on the timing of a full advertising sector
recovery.
Revenue in October was up by around 8% against a weak performance during the
same period last year and November looks likely to be up 4%. Booking levels are
providing greater visibility for December and indicate that the month will be in
positive territory, which will represent six consecutive months of growth.
We see limited short term effect on revenue from the recent audience figures for
95.8 Capital FM. We are focusing our efforts on improving programming to
increase listeners, on greater inventory and yield management and on driving
greater value across our portfolio of brands. We also have rigorous control of
costs across the Group.
We continue to believe that sustained growth will return to the radio
advertising market over time and that radio will continue to outperform the
display advertising market.
Financial Results
Group revenue for the 12 months to 30 September 2003 was in line with
expectations at #115.3 million (2002: #120.0 million). Group operating profit
before goodwill and exceptional items was #22.0 million (2002: #27.9 million).
Underlying Group profit before tax was #22.8 million (2002: #27.8 million). The
effective rate of tax on our underlying profits for the year was 30.5% (2002:
30.4%) and our underlying earnings per share was 19.3p (2002: 23.5p).
The profit before tax was #13.3 million (2002: #14.6 million). Basic earnings
per share was 7.7p (2002: 8.8p)
Our associated companies in total, contributed #2.3 million (2002: #1.4 million)
to the Group's profitability, before a goodwill amortisation charge of #0.2
million. Wildstar contributed #0.7 million with Craig David's second album
selling approximately 2 million copies worldwide. His third album is not due out
until the summer of 2004 and is therefore unlikely to have a significant impact
on Wildstar's financial performance this year. IRN contributed #1.2 million and
CE Digital, the digital multiplex operator, contributed #0.6 million.
We invested #4.2 million (2002: #3.3 million) in our wholly owned digital
operations, and therefore our net investment in digital radio, including our
associated companies, was #3.6 million (2002: #2.9 million). As a major player
in the development of digital radio, it remains a key part of our strategy for
growth and we plan to invest an additional #0.8 million in our digital radio
development in the coming financial year, as more of our brands are transmitted
on digital platforms.
Our cash generation remained very strong with 110% of our underlying operating
profit being converted into trading cashflow. After dividend payments of #15.2
million and tax payments of #7.1 million, our net debt was reduced by #1.4
million to #27.6 million (30 September 2002: #29.0 million).
Interest cover on our continuing radio business is 16x (2002: 19x), with a net
interest charge of #1.5 million (2002: #1.5 million).
Dividend
The Directors recommend a final dividend of 12.5p per share to be paid on 06
February 2004 to shareholders on the register on 21 November 2003 (ex dividend
date 19 November 2003). Including the interim dividend of 6.0p, our total
dividend for 2003 is unchanged year on year at 18.5p per share.
Operating Review
Audiences
In 2003, we maintained our position as the UK's leading local commercial radio
group and in the last published RAJAR figures (W3/03), we saw a quarter on
quarter increase of 141,000 listeners to 7.7 million and an increase of 871,000
hours. This represents listening to our twenty analogue stations and for the
first time also includes digital audience figures for Xfm outside its London
analogue Transmission Survey Area (TSA).
We have continued our strategy of building a portfolio of brands targeting
complementary demographics, and in London, with Capital FM, Capital Gold, Xfm
and Choice FM we are market leaders with a 31% reach and 23.4% commercial share.
Capital FM Network
During a period of transition for 95.8 Capital FM, while we saw decline in
listener numbers, the station continued to attract nearly 2.3 million listeners
(RAJAR W3/03) - the highest for any local commercial station in London and
across the UK. The 95.8 Capital FM breakfast show remains the biggest in
commercial radio in London with 1.2 million listeners, representing a 45% lead
over our nearest commercial competitor. However, share of listening hours
decreased in the last RAJAR period with our nearest competitor marginally
overtaking 95.8 Capital FM.
We believe that much of the recent loss of listeners can be attributed to the
changes our listeners experienced at breakfast during this and the prior RAJAR
period. However, it was essential to trial new presenters in the knowledge that
we were about to change the heritage presenter on our flagship show and we fully
expected to see some disruption during this time.
We have also recognised the need for greater creative and programming focus on
95.8 Capital FM, and have taken a number of steps, including July's management
changes, which we are confident will address and rectify the recent audience
decline at the station. The new 95.8 team have already implemented significant
changes to the station and in September announced a new schedule, new presenters
and most importantly confirmed Johnny Vaughan as the new breakfast show
presenter, starting in Spring 2004.
Outside London: Fox, Invicta, Power, Red Dragon and Southern, have all performed
well over the last 12 months maintaining leadership in their respective markets
over their nearest commercial competitors (RAJAR W3/03). BRMB and Beat are also
closing the gap on the local commercial market leaders, with the BRMB breakfast
show reclaiming the number one commercial position in Birmingham.
Century FM Network
With coverage in a number of the largest metropolitan areas in the UK outside
London, including Manchester, Liverpool, Newcastle, and Nottingham, the Century
FM network continues to grow both audience and revenues, and demonstrates
management's ability to acquire and develop a successful radio brand. By
focusing on an adult contemporary position, targeting female 25-44 year olds,
Century has successfully achieved record reach of 1.8 million (18%) and in the
most recent RAJAR results (W3/03) increased its share to 7.4% (W3/02: 6.2%). In
the past 12 months, Century has also seen revenue growth as we monetise the
audience increases. In September 2003, to support its 'music to sing along to'
campaign, Century released the Hairbrush Divas CD which entered the compilation
chart at number three.
Xfm Network
In the last 12 months, Xfm is increasingly satisfying a growing audience, moving
from a niche position to a broader listening base. The multi award winning
station, which has been voted station of choice among our media buying
customers, is broadening its daytime offering while providing evening
programming to cater for specialist tastes. In the RAJAR figures for W3/03, Xfm
achieved a 5% increase in reach to 634,000 listeners and now accounts for a
national share of 1.7% of 15-34 year old male listening. Xfm continues to take
advantage of brand extension opportunities through CDs, events and online and is
now being sold by our commercial division as a national proposition across a
number of digital platforms.
Capital Gold Network
In the past year, the Capital Gold network has repositioned its music output to
appeal to active 35-54 year olds with a passion for music, now encompassing a
much broader mix of classic hits. The Capital Gold network broadcasts on AM
frequencies in London, Birmingham, Kent, Sussex, Hampshire, South Wales and
Manchester and on digital and online across the UK. In the first RAJAR results
to include national figures (W3/03), the network saw an estimated increase of
380,000 listeners and 2.2 million additional hours and now has a reach of 1.8
million listeners. Capital Gold is also broadening its 'Legends' brand with the
first Capital Gold Legends Awards held in London in September 2003 and new
Legends CDs with sales totalling almost 2 million units.
Revenue
At the start of 2003, we recognised the need to strengthen our commercial
division and have now created new national and regional sales teams with a
strong brand led focus. These teams are now operating successfully and we have
filled the regional gaps that existed at the beginning of the year. For the year
to 30 September 2004, we have taken the decision to invest a further #1 million
in our commercial operations in order to improve our revenue performance.
As a group, we have continued to attract a number of high profile sponsors
including Kellogg's (Capital FM and Century FM networked breakfast shows),
Woolworths (Hit40UK), Rimmel (Capital Christmas Live and Party in the Park) and
O2 (Traffic & Travel). This remains a key area for revenue growth across the
Group.
We have seen the following performance in revenues from our top 15
advertising categories:
Category YOY growth % of total
Retail -2.1% 17.3%
Entertainment & the Media +2.7% 13.2%
Motors -19.7% 12.4%
Business & Industrial -17.7% 9.8%
Gov/Social/Political +6.5% 9.3%
Travel & Transport -17.6% 7.0%
Entertainment +0.9% 6.5%
Household Equipment +36.9% 6.1%
Food -27.8% 3.6%
Computers +31.7% 3.3%
Finance -22.9% 2.7%
Household Supplies +115.1% 2.2%
Cosmetics & Toiletries +34.3% 1.6%
Pharmaceutical -45.3% 1.5%
Drink -36.0% 1.2%
Source: Capital Radio Advertising October 2002 - September 2003
Implementing our strategy for long term future growth
As a national radio group with a strong presence in the UK's most demanded
markets, we have a clear operating structure based around the development of our
radio brands. Building on our national strength, we are focused on pursuing
appropriate complementary activities including new analogue licences, digital
licences, interactive platforms, CDs and events.
Digital development is a core part of our national strategy to extend Capital's
brands across additional platforms and we are focused on the growth of digital
radio in the UK. We now have 50 stations broadcasting our existing analogue and
digital only stations; Capital Disney and Life, across the UK to 85% of the
population. We believe that as multiplex owners, content providers and owners of
data spectrum, we are uniquely placed to harness the opportunities offered by
the roll out of digital radio. Specifically, the growth in uptake of digital
radio will strengthen our complementary position in key metropolitan areas
across the UK.
The changes in regulation which will be brought about with the Communications
Act will open up a number of transforming opportunities in the UK commercial
radio market and we believe that we have both management experience and
operational synergies to take advantage of potential consolidation
opportunities.
The financial information referred to herein does not constitute the company's
statutory accounts for the year ended 30 September 2003 or 2002 but is derived
from those accounts. Statutory accounts for 2002 have been delivered to the
registrar of companies, and those for 2003 will be delivered following the
company's Annual General Meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain statements under section 237
(2) or (3) of the Companies Act 1985.
Group Profit and Loss Account
For the year ended 30 September 2003 Note 2003 2002
#000 #000
Turnover 2 115,328 120,004
Operating profit
Before goodwill and exceptional operating costs 2 21,982 27,930
Exceptional operating costs 2, 4 - (3,576)
Amortisation of goodwill 2 (9,372) (9,372)
Operating profit 3 12,610 14,982
Share of operating profit of associated companies 4 2,113 1,144
Profit on ordinary activities before interest and
taxation 2 14,723 16,126
Net interest payable and similar items 6 (1,465) (1,477)
Underlying profit before taxation 4 22,795 27,762
Goodwill and exceptional items 4 (9,537) (13,113)
Profit on ordinary activities before taxation 13,258 14,649
Taxation on profit on ordinary activities 7 (6,939) (7,472)
Profit for the financial year 6,319 7,177
Dividends 9 (15,191) (15,197)
Retained loss for the financial year 18 (8,872) (8,020)
Basic Earnings per share 10 7.7p 8.8p
Loss per share on goodwill and exceptional items
after taxation 11.6p 14.7p
Underlying basic earnings per share 10 19.3p 23.5p
Diluted earnings per share 10 7.7p 8.8p
Group Balance Sheet
30 September 2003
Note 2003 2002
#000 #000
Fixed assets
Intangible assets - goodwill 11 152,076 161,448
Tangible fixed assets 12 16,858 16,387
Investments 13 5,656 5,905
174,590 183,740
Current assets
Debtors 14 20,958 20,081
Creditors: amounts falling due within one year 15 (63,323) (62,938)
Net current liabilities (42,365) (42,857)
Net assets 132,225 140,883
Capital and reserves
Called up share capital 17 2,075 2,055
Share premium account 18 78,965 75,516
Merger reserve 18 23,767 23,767
Profit and loss account 18 27,418 39,545
Equity shareholders' funds 132,225 140,883
Group Cash Flow Statement
For the year ended 30 September 2003 2003 2002 2002
2003
Note #000 #000 #000 #000
Net cash inflow from operating 19 26,962 30,081
activities
Dividends from associated 1,684 1,029
undertakings
28,646 31,110
Returns on investments and
servicing of finance
Interest received and similar 35 240
income
Interest paid (1,661) (1,676)
Net cash outflow from returns on
investments
and servicing of finance (1,626) (1,436)
Taxation paid (7,117) (6,128)
Capital expenditure and financial
investments
Proceeds from sale of tangible 76 71
fixed assets
Purchase of tangible fixed assets (3,541) (2,198)
Cash outflow on capital expenditure (3,465) (2,127)
Acquisitions and disposals 20 145 (2,644)
Cash outflow from equity dividends (15,180) (15,141)
paid
Cash inflow before financing 1,403 3,634
Cash outflow from financing 21 (2,686) (9,730)
Decrease in cash in the period (1,283) (6,096)
Reconciliation of Net Cash Flow to Movement in Net Debt (note 22)
Decrease in cash in the period (1,283) (6,096)
Cash flow from (increase)/decrease in bank loans
and overdrafts (1,500) 6,000
Repayment of finance leases 31 227
Repayment of loan notes 4,186 3,771
Movement in net debt in the period 1,434 3,902
Net debt at 1 October (28,999) (32,901)
Net debt at 30 September 22 (27,565) (28,999)
Reconciliation of Movements in Shareholders' Funds
For the year ended 30 September 2003 2003 2002
GROUP #000 #000
Profit for the financial year 6,319 7,177
Dividends (15,191) (15,197)
Retained loss for the financial year (8,872) (8,020)
New share capital issued 31 2,938
Movement on Quest 183 (303)
Net decrease in shareholders' funds (8,658) (5,385)
Shareholders' funds at beginning of year 140,883 146,268
Shareholders' funds at end of year 132,225 140,883
For the year ended 30 September 2003 2003 2002
COMPANY #000 #000
Profit for the financial year (note 8) 6,770 10,964
Dividends (15,191) (15,197)
Retained loss for the financial year (8,421) (4,233)
New share capital issued 31 2,938
Movement on Quest 183 11
Net decrease in shareholders' funds (8,207) (1,284)
Shareholders' funds at beginning of year 174,747 176,031
Shareholders' funds at end of year 166,540 174,747
Statement of Group Total Recognised Gains and Losses
For the year ended 30 September 2003 2003 2002
GROUP #000 #000
Profit for the financial year:
Group 4,888 6,387
Share of associates 1,431 790
Total gains and losses recognised since last annual report 6,319 7,177
Company Balance Sheet
30 September 2003
Note 2003 2002
#000 #000
Fixed assets
Tangible fixed assets 12 10,346 9,401
Investments 13 245,663 245,947
256,009 255,348
Current assets
Debtors 14 52,895 51,967
52,895 51,967
Creditors: amounts falling due within one year 15 (142,341) (132,568)
Net current liabilities (89,446) (80,601)
Total assets less current liabilities 166,563 174,747
Provisions for liabilities and charges 16 (23) -
Net assets 166,540 174,747
Capital and reserves
Called up share capital 17 2,075 2,055
Share premium account 18 78,965 75,516
Revaluation reserve 18 429 429
Merger reserve 18 37,242 37,242
Profit and loss account 18 47,829 59,505
Equity shareholders' funds 166,540 174,747
Notes Forming Part of the Accounts
1. Accounting Policies
A summary of the principal Group accounting policies, all of which have been
applied consistently throughout the year, is set out below.
a. Basis of accounting
The accounts have been prepared under the historical cost accounting rules and
in accordance with applicable accounting standards.
b. Basis of consolidation
(i) The consolidated accounts include the accounts of the Company
and its subsidiary undertakings made up to 30 September 2003.
Unless otherwise stated, the acquisition method of accounting has been adopted.
Under this method, the results of subsidiary undertakings acquired or disposed
of in the year are included in the consolidated profit and loss account from the
date of acquisition or up to the date of disposal.
An associate is an undertaking in which the Group has a long term interest,
usually from 20% to 50% of the equity voting rights, and over which it exercises
significant influence. The Group's share of the profits less losses of
associates is included in the consolidated profit and loss account and its
interest in their net assets is included in the consolidated balance sheet.
Other fixed asset investments in the Group accounts, and all fixed assets in the
accounts of the Company, are stated at cost less amounts written off in respect
of any impairment in value.
(ii) Purchased goodwill (both positive and negative) arising on
consolidation in respect of acquisitions before 1 October 1997, when Financial
Reporting Standard 10, Goodwill and intangible assets, was adopted, was written
off to reserves in the year of acquisition. When a subsequent disposal occurs
any related goodwill previously written off to reserves is written back through
the profit and loss account as part of the profit or loss on disposal.
Purchased goodwill (representing the excess of the fair value of the
consideration given and any related costs over the fair value of the separable
net assets acquired) arising on consolidation in respect of acquisitions since 1
October 1997 is capitalised. Positive goodwill is amortised to #nil by equal
annual instalments over its estimated useful life, being deemed to be 20 years.
On the subsequent disposal or termination of a business acquired since 1 October
1997, the profit or loss on disposal or termination is calculated after charging
/(crediting) the unamortised amount of any related goodwill/(negative goodwill).
(iii) Under section 230(4) of the Companies Act 1985 the Company is exempt from
the requirement to present its own profit and loss account. The profit for the
financial year dealt with in the financial statements of the holding company was
#6,770,000 (2002: #10,964,000).
c. Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation.
Depreciation is provided to write off the cost (less estimated residual value)
of each asset on a straight line basis over its expected useful life, as
follows:
Freehold buildings 2%-4% per annum
Long leasehold premises 4%-6% per annum
Short leasehold premises over the term of the lease, or
where the lease is renewable, 5%
Office and studio equipment 10%-20% per annum
Digital equipment over the term of the contract
Computer equipment 33% per annum
Motor vehicles 25% per annum
Freehold land is not depreciated.
d. Investments
In the Company's accounts investments in subsidiary companies are stated at cost
less provisions where, in the opinion of the Directors, there has been an
impairment in the value of the investment. Dividends receivable from subsidiary
companies are credited to the Company's profit and loss account. Fixed asset
investments are stated at cost less provisions where, in the opinion of the
Directors, there has been an impairment in the value of the investment.
e. Taxation
The charge for taxation is based on the profit for the year and takes into
account taxation deferred because of timing differences between the treatment of
certain items for taxation and accounting purposes.
Deferred tax is recognised, without discounting, in respect of all timing
differences between the treatment of certain items for taxation and accounting
purposes which have arisen but not reversed by the balance sheet date, except as
otherwise required by FRS 19.
f. Operating leases
Rentals payable under operating leases are charged to the profit and loss
account on a straight line basis.
g. Finance leases
Assets held under finance lease agreements are included in tangible fixed assets
and are depreciated in accordance with the depreciation policy. Obligations
under such agreements are included in creditors net of finance charges allocated
to future periods. Finance charges are taken to the profit and loss account so
that the annual rate of charge on the outstanding obligation at the end of each
accounting period is approximately constant.
h. Turnover
Turnover comprises income from the sale of advertising airtime, sponsorship and
promotions (net of agencies' commissions) and income from advertising on the
Internet. Turnover is stated excluding VAT, trade discounts, and intra group
transactions and derives from goods and services provided in the normal course
of business. Airtime revenue is recognised on the date of broadcast. Sponsorship
revenue is recognised over the life of the contract. Internet advertising is
recognised evenly over the life of the contract.
i. Licences
Expenditure incurred on the purchase of licences and successful applications and
re-applications for licences is written off to the profit and loss account as it
is incurred.
j. Pensions
The Group provides for and funds pension liabilities on a going concern basis,
on the advice of external actuaries. The amount charged to the profit and loss
account is calculated to produce a level percentage of the current and future
pensionable payroll. The group has adopted the transitional arrangements under
Financial Reporting Standard 17, Retirement Benefits, and these disclosures can
be found in note 23.
k. Own shares held under trust
Shares in the Company issued to cover SAYE schemes are held in a qualifying
Share Ownership Trust (QUEST). Shares in the Company issued to cover the long
term incentive plan (Capital Radio Restricted Share Plan) are held in the
Capital Radio Employee Trust.
l. Employee share schemes
The cost of awards to employees that take the form of shares or rights to shares
are recognised in the profit and loss account over the period of the employee's
related performance. Where there are no performance criteria, the cost is
recognised when the employee becomes unconditionally entitled to the shares. No
cost is recognised in respect of SAYE schemes that are offered on similar terms
to all or substantially all employees.
Shares acquired by the Trustee of the long term incentive plan funded by the
company and held for the continuing benefit of the company are classified as
fixed asset investments until such time as the shares vest unconditionally in
employees.
m. Development expenditure
Development expenditure is written off to the profit and loss account in the
year in which it is incurred.
2. Segmental Turnover Profit before Net Assets
Information Interest and Taxation
2003 2002 2003 2002 2003 2002
#000 #000 #000 #000 #000 #000
Commercial
Radio, all
from UK:
Analogue 114,637 119,686 26,216 31,225
Digital 691 318 (4,234) (3,295)
Total 115,328 120,004 21,982 27,930 168,504 179,389
Exceptional - - - (3,576) - -
operating
costs
Amortisation - - (9,372) (9,372) - -
of goodwill
115,328 120,004 12,610 14,982 168,504 179,389
Share of - - 2,113 1,144 5,475 5,472
associated
companies
Cash, - - - - (27,384) (28,566)
overdrafts,
loans and
other
investments
Liabilities - - - - (4,104) (5,136)
for
corporation
tax
Proposed - - - - (10,266) (10,276)
dividend
115,328 120,004 14,723 16,126 132,225 140,883
Amortisation of goodwill relates to analogue commercial radio activities. All
exceptional costs relate to analogue commercial radio activities. Net assets
cannot be split between analogue and digital.
During the year the Group entered into Barter agreements worth #407,000
(2002: #206,000). This is recognised at the Company's airtime rates in
accordance with UITF 26.
3 Operating Profit 2003 2002
#000 #000
Turnover 115,328 120,004
Direct costs (14,406) (14,843)
Gross profit 100,922 105,161
Staff costs (27,827) (27,065)
Other operating charges (48,078) (46,583)
Exceptional operating costs - (3,576)
(48,078) (50,159)
Depreciation and amortisation (12,407) (12,955)
Operating profit 12,610 14,982
2003 2002
Profit on ordinary activities before taxation is stated after
charging/(crediting) the following items: #000 #000
Hire of plant or machinery 869 921
Other operating lease charges 2,062 1,801
Auditors' remuneration: 100 99
Audit services
Further assurance services 24 27
Tax services 54 21
Other services 3 -
Profit on disposal of fixed assets (41) (30)
Profit on disposal of investment (20) -
Fees paid to the auditor for the audit of the Company amounted to #25,000 (2002:
#25,000). Auditors' fees have been reviewed by the Audit Committee.
4. Underlying Profit before Taxation from Continuing
Operations
Underlying profit before taxation from continuing 2003 2002
operations has been calculated as follows:
#000 #000
Profit on ordinary activities before taxation 13,258 14,649
Restructuring costs - 3,576
Amounts written off goodwill - radio 9,372 9,372
Amounts written off goodwill - associates 165 165
Net excluded items 9,537 13,113
Underlying profit before taxation from continuing 22,795 27,762
operations
Restructuring costs in 2002 related to costs incurred in re-aligning the Group's
operations along brand lines and into one commercial division. These costs
consisted of redundancies, consultancy fees and fixed asset write-offs of
#319,000.
5. Staff 2003 2002
#000 #000
The aggregate payroll costs of the persons employed by the
Group during the year were as follows:
Wages and salaries 23,441 23,403
Social security costs 2,589 2,538
Other pension costs (see note 23) 1,317 1,124
27,347 27,065
Redundancy costs (included within exceptional operating 480 1,477
costs in 2002)
27,827 28,542
The above analysis includes the costs relating to Directors. The figures exclude
radio presenters engaged under short-term and part-time contracts. The total
cost of these persons amounted to #8,937,000 (2002: #8,970,000).
2003 2002
No. No.
The average number of persons employed by the Group (including
Directors) during the year was as follows:
Radio: Management and administration 152 173
Sales 315 319
Programming 168 170
Engineering 27 25
662 687
6. Net Interest Payable and Similar Items 2003 2002
#000 #000
Interest receivable and similar income:
Bank interest 40 240
Bank interest attributable to associated undertakings 60 95
100 335
Interest payable and similar charges:
Bank loan and overdrafts, wholly repayable within 5 (1,444) (1,415)
years
Interest on Capital Radio plc loan notes (114) (338)
Hire purchase, finance leases and other interest (1) (19)
Bank interest attributable to associated undertakings (6) (40)
(1,565) (1,812)
(1,465) (1,477)
7. Taxation 2003 2003 2002 2002
#000 #000 #000 #000
Corporation tax at 30% 6,215 7,539
Share of associated companies' taxation 736 409
Adjustment relating to prior years (130) 42
Total current tax 6,821 7,990
Deferred tax (see note 16)
Origination/reversal of timing differences 250 (226)
Adjustment in respect of prior years (132) (292)
118 (518)
Tax on profit on ordinary activities 6,939 7,472
Factors affecting the tax charge for the year
The current tax charge for the year is higher (2002: higher) than the standard
rate of corporation tax in the UK of 30%. The differences are explained below.
2003 2002
#000 #000
Current tax reconciliation
Profit on ordinary activities before tax 13,258 14,649
Current tax at 30% (2002 : 30%) 3,977 4,395
Effects of:
Expenses not deductible for tax purposes: 2,861 2,861
Goodwill amortisation (including that in respect of associated
undertakings) 99 554
Other
Depreciation for period in excess of capital allowances 14 171
Utilisation of tax losses - (33)
Adjustments to tax charge in respect of previous periods (130) 42
Total current tax charge (see above) 6,821 7,990
8. Profit for the Financial Year
The profit for the financial year dealt with in the accounts of the Company
was #6,770,000 (2002: profit #10,964,000).
9. Dividends 2003 2002
#000 #000
Interim dividend of 6.0p (2002: 6.0p) per share, paid on 4,925 4,921
20 June 2003
Proposed final dividend of 12.5p (2002: 12.5p) per share, 10,266 10,276
to be paid on 6 February 2004
Total dividend of 18.5p per share (2002: 18.5p) 15,191 15,197
Shares held in the Capital Radio Employee Trust, Capital Radio Restricted Share
Plan and QUEST have waived their right to receive dividends.
10. Earnings Per Share
The calculation of earnings per share is based on the profit after taxation
of #6,319,000 (2002: #7,177,000) and on the weighted average of 82,070,658
(2002: 82,014,070) Ordinary Shares in issue during the year. The underlying
earnings per share from operations is included to show the effect of
adjusting for the impact of goodwill and restructuring costs which results
in earnings increasing by #9,537,000 (2002: #13,113,000), (see note 4).
After the effect of a related tax credit of #nil (2002: #977,000), this
results in earnings of #15,856,000 (2002: #19,313,000).
Dilution increases the weighted average number of shares to 82,160,899
(2002: 82,040,322). The dilution effect is caused by the inclusion of
90,242 share options (2002: 26,252). There is no change in profit after
taxation.
11. Intangible Assets - Goodwill
#000
GROUP
Book value
Beginning and end of year 192,136
Amortisation
Beginning of year 30,688
Provided during the year 9,372
End of year 40,060
Net book value
Beginning of year 161,448
End of year 152,076
12. Tangible Fixed Land and Long Short Fixtures,
Assets
GROUP Freehold Leasehold Leasehold Fittings and Motor
Property Premises Premises Equipment Vehicles Total
#000 #000 #000 #000 #000 #000
Cost
Beginning of year 1,847 3,327 8,571 24,025 458 38,228
Reclassifications - (26) - 26 - -
Additions - 9 29 3,410 93 3,541
Disposals - - - (1,678) (214) (1,892)
End of year 1,847 3,310 8,600 25,783 337 39,877
Depreciation
Beginning of year 385 697 1,531 18,889 339 21,841
Charged in year 38 171 402 2,357 67 3,035
Reclassifications - (101) 101 - - -
Disposals - - - (1,669) (188) (1,857)
End of year 423 767 2,034 19,577 218 23,019
Net book value
Beginning of year 1,462 2,630 7,040 5,136 119 16,387
End of year 1,424 2,543 6,566 6,206 119 16,858
The net book value of assets held under finance leases by the Group amounted to
#nil (2002: #61,000). The depreciation charge in respect of these assets
amounted to #61,000 (2002: #82,000). The gross book value of freehold property
includes #1,488,000 (2002: #1,488,000) of depreciable assets.
Short Fixtures,
COMPANY Leasehold Fittings and Motor
Premises Equipment Vehicles Total
#000 #000 #000 #000
Cost
Beginning of year 8,087 19,479 329 27,895
Additions - 2,532 72 2,604
Disposals - (1,668) (122) (1,790)
Disposal to subsidiary
undertaking - (213) - (213)
End of year 8,087 20,130 279 28,496
Depreciation
Beginning of year 1,337 16,891 266 18,494
Charged in year 348 1,186 36 1,570
Disposals - (1,668) (107) (1,775)
Disposal to subsidiary
undertaking - (139) - (139)
End of year 1,685 16,270 195 18,150
Net book value
Beginning of year 6,750 2,588 63 9,401
End of year 6,402 3,860 84 10,346
13. Fixed Asset Investments
Associated Other Own
GROUP Companies Investments Shares Total
#000 #000 #000 #000
Book value
Beginning of year 5,637 622 626 6,885
Additions 72 - - 72
Disposals (111) (30) - (141)
Share of retained profits 207 - - 207
End of year 5,805 592 626 7,023
Provisions
Beginning of year 165 575 240 980
Provided during the year - - 222 222
Amortisation of goodwill 165 - - 165
End of year 330 575 462 1,367
Net book value
Beginning of year 5,472 47 386 5,905
End of year 5,475 17 164 5,656
Fixed asset investments comprise:
At the beginning of the year
Unlisted investments 5,472 47 - 5,519
Listed investments - - 386 386
Total 5,472 47 386 5,905
At the end of the year
Unlisted investments 5,475 17 - 5,492
Listed investments - - 164 164
Total 5,475 17 164 5,656
Market value of listed investments
At beginning of year - - 463 463
At end of year - - 446 446
Included within Associated Companies is goodwill of #2,974,000 (2002:
#3,139,000) which arose on the acquisition of 19% of Choice FM (Tainside
Limited).
13. Fixed Asset Investments
(continued)
Subsidiary Associated Other Own
Companies Companies Investments Shares Total
#000 #000 #000 #000 #000
COMPANY
Book value
Beginning of 293,570 4,801 614 626 299,611
year
Additions 7 72 - - 79
Disposals - (111) (30) - (141)
End of year 293,577 4,762 584 626 299,549
Provisions
Beginning of 52,437 415 572 240 53,664
year
Provided during - - - 222 222
the year
End of year 52,437 415 572 462 53,886
Net book value
Beginning of 241,133 4,386 42 386 245,947
year
End of year 241,140 4,347 12 164 245,663
Fixed asset
investments
comprise:
At beginning of
year
Unlisted 241,133 4,386 42 - 245,561
investments
Listed - - - 386 386
investments
Total 241,133 4,386 42 386 245,947
At the end of
the year
Unlisted 241,140 4,347 12 - 245,499
investments
Listed - - - 164 164
investments
Total 241,140 4,347 12 164 245,663
Own Shares in both the Group and Company represents shares in Capital Radio plc
acquired by the Trustee of the Capital Radio Restricted Share Plan to satisfy
potential future obligations to award shares under the Plan. In accordance with
guidance given by the Urgent Issues Task Force the cost of these shares is
amortised over three years, being the period of service in respect of which
conditional awards have been made.
14. Debtors Group Company
2003 2002 2003 2002
Restated Restated
#000 #000 #000 #000
Amounts falling due within one
year:
Trade debtors 14,032 13,207 14,032 13,207
Amounts due from subsidiary - - 34,348 34,281
undertakings
Deferred tax asset (see note 16) 400 518 - 95
Other debtors 1,133 761 878 542
Prepayments and accrued income 4,426 4,643 2,670 2,890
19,991 19,129 51,928 51,015
Amounts falling after more than one
year:
Prepayments and accrued income 967 952 967 952
967 952 967 952
Total 20,958 20,081 52,895 51,967
2002 is restated for reclassification of credit balances held within trade
debtors.
15. Creditors: Amounts falling due
within one year
Group Company
2003 2002 2003 2002
Restated Restated
#000 #000 #000 #000
Bank loans and overdrafts 25,771 22,988 25,785 23,002
Loan notes (see note below) 1,794 5,980 1,794 5,980
Finance leases - 31 - -
Trade creditors 10,921 7,327 10,139 6,793
Other creditors 1,966 4,148 1,590 3,660
Amounts due to subsidiary - - 86,176 78,182
undertakings
Corporation tax payable 4,104 5,136 243 113
Proposed dividend 10,266 10,276 10,266 10,276
Other taxation and social 2,890 2,340 2,890 2,340
security
Accruals and deferred income 5,611 4,712 3,458 2,222
63,323 62,938 142,341 132,568
2002 trade creditors is restated for reclassification of credit balances held
within trade debtors.
The floating rate bank loans carry interest at 0.8% over LIBOR and are repayable
by 31 March 2004. Bank overdrafts carry interest at 1% over bank base rate and
are repayable on demand.
Capital Radio plc loan notes
Capital Radio plc loan notes amounting to #420,000 were redeemed by the Company
on 31 July 2003. The loan notes were issued in July 1998 over a five year term.
Interest was paid six monthly in arrears at 1% below London Inter-Bank Offered
Rates.
Capital Radio plc loan notes (continued)
Capital Radio plc loan notes amounting to #1,660,000 (2002: #5,426,000) were
issued in June 2000 and have a five year term. Interest is paid six monthly in
arrears at 1% below London Inter-Bank Offered Rates. The loan notes may be
redeemed at the holder's option on interest dates until 2005, or by the Company
on 31 March 2005.
Capital Radio plc loan notes amounting to #134,000 (2002: #134,000) were issued
in August 2000 and have a five year term. Interest is paid six monthly in
arrears at 1% below London Inter-Bank Offered Rates. The loan notes may be
redeemed at the holder's option on interest dates until 2005, or by the Company
on 31 March 2005.
16. Provisions for Liabilities and Charges
Group Company
2003 2002 2003 2002
#000 #000 #000 #000
Deferred taxation at 1 October 2002 - - - -
Charge to the profit and loss for the year
Additional amounts provided - - 23 -
Deferred taxation at 30 September 2003 - - 23 -
The elements of deferred taxation are as follows:
Group Group Company Company
2003 2002 2003 2002
#000 #000 #000 #000
Accelerated capital allowances (85) 67 (360) (192)
Other timing differences 369 352 337 287
Tax losses 116 99 - -
Deferred tax asset (see note 14) 400 518 - 95
Deferred tax liability - - (23) -
No account has been taken of UK tax losses which are not expected to be utilised
in the foreseeable future. The total amount unprovided in respect of these
losses is #1,300,000 (2002: #1,300,000).
17. Share Capital 2003 2002
#000 #000
Authorised 100,000,000 (2002: 100,000,000) Ordinary 2,500 2,500
Shares of 2.5p each
Allotted, called-up and fully paid 82,990,505 (2002: 2,075 2,055
82,211,330) Ordinary shares of 2.5p each
The increase in the issued share capital was due to: Number Number
Ordinary Shares of 2.5p each issued fully paid during
the year:
- on acquisitions - 260,253
- on issue of own shares to LTIP 516,129 133,700
- on issue to Quest (not exercised) 250,000 -
- on exercise of option rights 13,046 57,578
779,175 451,531
17. Share Capital (continued)
At 30th September 2003, the Company had options outstanding to subscribe for
3,796,534 (2002: 2,750,204) ordinary shares. Details of the outstanding options
are as follows:
Option Number of Exercise Exercisable
Shares Price Not
Grant Date Under Option (pence) Earlier Than
Capital Radio 1986 Senior Executive Share Option Scheme
December 1994 24,100 332 December 1997
December 1996 24,300 540 December 1999
Capital Radio Savings Related Share Option Scheme
December 1998 20,858 448 February 2004
December 1999 13,520 897 February 2005
December 2000 5,664 1054 February 2006
December 2001 45,169 614 February 2007
December 2002 307,134 428 February 2008
Capital Radio 1998 Share Option Scheme
March 1998 151,855 633 March 2001
November 1998 234,958 541 November 2001
June 1999 48,243 865 May 2002
November 1999 182,718 1224 November 2002
May 2000 72,685 1262 May 2003
November 2000 297,933 1172 November 2003
December 2000 16,204 1172 December 2003
February 2001 70,067 1080 February 2004
May 2001 131,229 765 May 2004
November 2001 373,897 815 November 2004
January 2002 109,059 705 January 2005
May 2002 110,394 772 May 2005
June 2002 54,264 645 June 2005
July 2002 79,734 667 July 2005
November 2002 636,077 502 November 2005
May 2003 557,211 427 May 2006
Capital Radio Presenters Share Option Scheme
March 2000 54,794 1825 March 2003
December 2000 40,358 1115 December 2003
July 2001 38,759 645 July 2004
November 2001 30,674 815 November 2004
November 2002 64,676 502 November 2005
During the year, options over 59,750 Ordinary Shares of 2.5p each were
exercised, of which 46,704 were issued through the "Quest", for a total
consideration of #183,000, resulting in an increase in the share premium account
of #31,000. Options over 459,533 shares lapsed during the year. The number of
shares held in the "Quest" as at 30 September 2003 was 284,365 and their market
value was #1,344,000. Share options under the Capital Radio 1986 Senior
Executive Share Option Scheme and the Capital Radio 1998 Share Option Scheme and
the Capital Radio Presenters Share Option Scheme expire ten years after the date
of grant. Options under the Capital Radio Savings Related Share Option Scheme
expire six months after the date on which they can first be exercised.
18. Reserves Profit
Share Revaluation Merger and Loss
Premium Reserve Reserve Account
#000 #000 #000 #000
The movement on reserves
during the year
was as follows:
Group
Beginning of year 75,516 - 23,767 39,545
Retained loss for the year - - - (8,872)
Movement on Quest - - - 183
Issue of shares to Quest 1,237 - - (1,244)
Issue of shares to LTIP 2,181 - - (2,194)
Premium arising on issue of 31 - - -
shares
End of year 78,965 - 23,767 27,418
Company
Beginning of year 75,516 429 37,242 59,505
Retained loss for the year - - - (8,421)
Movement on Quest - - - 183
Issue of shares to Quest 1,237 - - (1,244)
Issue of shares to LTIP 2,181 - - (2,194)
Premium arising on issue of 31 - - -
shares
End of year 78,965 429 37,242 47,829
The cumulative total of goodwill written off against the Group profit and loss
account reserve in respect of acquisitions prior to 1 October 1997, when
Financial Reporting Standard 10: Goodwill and Intangible Assets was adopted,
amounts to #45,941,000 (2002: #45,941,000).
19. Reconciliation of Operating Profit to Net Cash
Inflow from Operating Activities 2003 2002
#000 #000
Operating profit 12,610 14,982
Depreciation and impairment 3,035 3,902
Amortisation and impairment of goodwill 9,372 9,372
Profit on disposal of tangible fixed assets (41) (30)
Increase in debtors (694) (3,015)
Increase in creditors 2,478 4,670
Profit on disposal of investment (20) -
Change in provisions against investments in own shares 222 200
Net cash inflow from operating activities 26,962 30,081
20. Cash flows from acquisitions and disposals 2003 2002
#000 #000
Net cost from sale of Border Television Plc - (397)
Net proceeds from sale of other investments 50 -
Purchase of fixed asset investments (16) (2,247)
Repayment of associate set-up costs 111 -
Net cash inflow/(outflow) from acquisitions and 145 (2,644)
disposals
21. Cash Flows from Financing 2003 2002
#000 #000
Proceeds from issue of shares 31 268
Bank loans 20,000 -
Repayment of bank loans (18,500) (6,000)
Repayment of loan notes (4,186) (3,771)
Capital element of finance leases (31) (227)
Net cash outflow from financing (2,686) (9,730)
22. Analysis of Net Debt Net Debt at Cash Other Non- Net Debt at
1 October Flow Cash Changes 30 September
2002 2003
#000 #000 #000 #000
Cash at bank - - - -
Bank loans and (4,488) (1,283) - (5,771)
overdrafts
(4,488) (1,283) - (5,771)
Bank loans falling due (18,500) (1,500) - (20,000)
in less than one
year
Loan notes (5,980) 4,186 - (1,794)
Finance leases (31) 31 - -
(24,511) 2,717 - (21,794)
(28,999) 1,434 - (27,565)
23. Pension Funds
The Group operates three pension schemes on behalf of its employees. The Capital
Radio Plc Pension and Assurance Scheme (CRPPAS) and the Midlands Radio Group
Pension Scheme (MRGPS) are contributory defined benefit schemes. Both schemes
were closed to new employees from 31 March 1995. At 30 September 2003, 18
employees of Capital Radio plc and 6 employees of Birmingham Broadcasting
Limited respectively were active members of these schemes. All other employees
in the Radio Group, and in particular new employees, are eligible to join the
Capital Radio Group Personal Pension Plan, which was established on 1 April
1995. This scheme is a contributory defined contribution arrangement and as at
30 September 2003, 234 employees were active members of this scheme. The Group
makes age related contributions to the scheme.
For both defined benefits schemes, the assets are held separately from those of
the Group, being invested with insurance companies. Independent actuarial
valuations are obtained every third year. Contributions to the pension schemes
are made in accordance with advice given by independent qualified actuaries.
Details of the most recent actuarial valuations of the defined benefit pension
schemes, insofar as they relate to the Group, are as follows:
MRGPS CRPPAS
Date of last 30 September 2002 1 April 2002
valuation
Method used Minimum Funding Requirement Minimum Funding Requirement
(MFR) (MFR)
Assumptions:
Annual salary
increase 6% 4.5%
Annual
investment
return before
retirement 9% 6%
Annual
investment
return after
retirement 8% 5%
Market value
of scheme
assets #2,735,000 #9,422,000
Percentage of
liabilities 86% 76%
Under the MFR method of valuation, the current service cost of members will
increase as members approach retirement.
The contribution to the CRPPAS made by the Company in the year was #345,000. The
Company has agreed to redress the deficit over five years at the funding rate of
21% (plus the cost of insured death in service benefits) plus #31,500 per month
as recommended by the actuary.
The contribution to the MRGPS made by the Company in the year was #347,000. The
Company has agreed to redress the deficit over five years at the funding rate of
16.2% of pensionable salaries plus #5,800 per month for three years as
recommended by the actuary.
Additional disclosures in accordance with FRS17
An actuarial estimate performed by independent qualified actuaries, based on the
last full valuations as above, has been undertaken to provide the information
required for FRS 17 as at 30 September 2003:
The major assumptions used by the actuary were:
MRGPS and CRPPAS MRGPS and CRPPAS
30 September 2003 30 September 2002
Rate of increase in salaries 4.25% 4.00%
Rate of increase in pensions in
payment 3.25% 3.00%
Discount rate 5.30% 5.40%
Inflation assumption 2.50% 2.25%
23. Pension Funds (continued)
The assets in the Scheme and the expected rates of return were:
Long term rate of Value at Long term rate of Value at
Assets in the return expected at 30 September 2003 return expected at 30 September 2002
Scheme 30 September 2003 #000 30 September 2002 #000
MRGPS CRPPAS MRGPS CRPPAS MRGPS CRPPAS MRGPS CRPPAS
Equities 7.0% 6.0% 2,367 3,515 7.0% 6.5% 1,756 3,156
Gilts 4.5% 6.0% 847 3,515 4.5% 6.5% 723 3,156
Cash/other 4.0% 6.0% 30 2,540 4.0% 5.4% 248 2,191
3,244 9,570 2,727 8,503
The following amounts at 30 September 2003 and 30 September 2002 were measured
in accordance with the requirements of FRS 17:
2003 2002
#000 #000
MRGPS CRPPAS MRGPS CRPPAS
Total market value of assets 3,244 9,570 2,727 8,503
Present value of Scheme liabilities (5,923) (12,784) (5,255) (12,042)
Deficit in Scheme (2,679) (3,214) (2,528) (3,539)
Related deferred tax asset 804 964 758 1,062
Net pension deficit (1,875) (2,250) (1,770) (2,477)
If the above amounts had been recognised in the financial statements, the
Group's net assets and profit and loss reserve at 30 September 2003 and 30
September 2002 would be as follows:
2003 2002
#000 #000
Net assets excluding pension deficit 132,225 140,883
Pension deficit - MRGPS (1,875) (1,770)
Pension deficit - CRPPAS (2,250) (2,477)
Net assets including pension deficit 128,100 136,636
Profit and loss reserve excluding pension deficit 27,418 39,545
Pension reserve - MRGPS (1,875) (1,770)
Pension reserve - CRPPAS (2,250) (2,477)
Profit and loss reserve 23,293 35,298
The Company participates in a multi-employer pension scheme and is unable to
identify its share of the underlying assets and liabilities.
23. Pension Funds (continued)
The following amounts would have been recognised in the performance statements
in the year to 30 September 2003 under the requirements of FRS 17:
2003 2002
#000 #000
Operating profit MRGPS CRPPAS MRGPS CRPPAS
Current service cost (51) (141) (81) (194)
Past service cost - - - -
Loss on settlements/curtailments - (35) - -
Total operating charge (51) (176) (81) (194)
Other finance income:
Expected return on pension scheme assets 174 531 189 511
Interest on pension scheme liabilities (285) (647) (271) (595)
Net return (111) (116) (82) (84)
Statement of total recognised gains and MRGPS CRPPAS MRGPS CRPPAS
losses
Actual return less expected return on
pension scheme assets 47 327 (341) (329)
Experience gains and losses on pension
scheme liabilities (115) 489 (268) (35)
Change in assumptions underlying pension
scheme liabilities (268) (544) (486) (1,496)
Actuarial gains and losses in STRGL (336) 272 (1,095) (1,860)
2003 2003
#000 #000
Movement in deficit during the year MRGPS CRPPAS MRGPS CRPPAS
Deficit in Scheme at beginning of year (2,528) (3,539) (1,595) (1,676)
Movement in year:
Current service cost (51) (141) (81) (194)
Contributions 347 345 325 275
Past service costs - - - -
Other finance income (111) (116) (82) (84)
Loss on settlements/curtailments - (35) - -
Actuarial gain (336) 272 (1,095) (1,860)
Deficit in Scheme at end of year (2,679) (3,214) (2,528) (3,539)
2003 2002
#000 #000
Details of experience gains/losses for MRGPS CRPPAS MRGPS CRPPAS
year to 30 September 2003
Difference between actual and expected
return on assets
Amount 47 327 (341) (329)
Percentage of Scheme assets 1.4% 3.4% (12.5%) (3.9%)
Experience gains and losses on Scheme
liabilities
Amount (115) 489 (242) (35)
Percentage of the present value of the
Scheme liabilities (1.9%) 3.8% (4.6%) (0.0%)
Total amount recognised in statement of
total recognised gains and losses:
Amount (336) 272 (1,095) (1,860)
Percentage of the present value of the
Scheme liabilities (5.7%) 2.1% (20.8%) (21.9%)
In accordance with the transitional arrangements of FRS 17, the deficits on the
above schemes have not been recognised in the accounts.
The total pension cost for the period was #1,317,000 (2002: #1,124,000). Pension
costs for the two defined benefit schemes are charged to the profit and loss
account so as to spread the cost of pensions over employees' working lives with
the Group. The pensions charge for the other scheme represents the contributions
paid. The outstanding creditor to pensions schemes at 30 September 2003 was
#103,000 (2002: #102,000).
24. Financial Commitments
Annual operating lease commitments as at 30 September 2003 analysed by expiry
date are as follows:
Land and Land and
Buildings Other Buildings Other
2003 2003 2002 2002
GROUP #000 #000 #000 #000
Less than one year - 437 - 105
Within one to two years - 208 - 357
Within three to five years - 149 - 221
In more than five years 2,094 - 2,016 -
2,094 794 2,016 683
COMPANY
Less than one year - 54 - 20
Within one to two years - 49 - 38
Within three to five years - 35 - 55
In more than five years 1,472 - 1,461 -
1,472 138 1,461 113
There was no contracted capital expenditure at 30
September 2003.
25. Contingent Liabilities
On the 25 October 2001 Capital Radio plc acquired 19% of Tainside Limited
(trading as Choice FM) for #3,565,000. The net assets on acquisition amounted to
#261,000. The Group has applied associate accounting for this purchase. On the
same date the Group also signed a "Put and Call Option" to acquire the remaining
81% of Tainside Limited. The option can potentially be exercised between 30
September 2004 and 29 September 2006. The current best estimate of the possible
additional consideration is approximately #17,000,000 which will be settled
predominantly in Capital Radio shares at a valuation of #6.355 per share.
The Company has given its bankers a cross guarantee to secure the bank
borrowings of the other Group undertakings. This guarantee is unsecured. The
Directors do not anticipate that any liability will fall on the Company in
respect of this guarantee.
During the year, the company granted a guarantee in favour of Bank of Scotland
for all amounts due and to become due by Soul Media Limited (Choice FM). The
guarantee is limited to a sum of #500,000 plus interest and costs. Soul Media
Limited is a wholly owned subsidiary of Tainside Limited.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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