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30th June 2009

THE LOCAL RADIO COMPANY PLC

(the 'Local Radio Company'' or the ''Company')

Unaudited Interim results for the six months to 31st March 2009

Highlights:

• Offer from UKRD Group Limited closed on 19 June 2009, with UKRD Group now holding 64.24 per cent of the issued share capital of the Company
• Restructuring of portfolio and reduction in central overheads continuing
• Like for like revenue from continuing operations down by 7.2% to £7.0 million (H1 08 £7.5million)*
• First Radio Sales decreased commission revenues by 20% to £1.0 million

*figures relate to same continuing business in 08 and 09

Trevor Smallwood, Chairman of The Local Radio Company plc said:

'Whilst trading conditions remain difficult and the advertising market remains depressed, the board has taken and continues to take action to restructure the business and reduce its cost base. On balance, the board believes that following the restructuring and with some further operational improvements the Group will be able to operate profitably and benefit from the upturn when it arrives.'

 

For further information please contact: 

Roger Humm

Group Finance Director         

The Local Radio Company Plc 

Tel: 01209 310435

www.thelocalradiocompany.com                

Brett Miller/Roxane Marffy                         

Ruegg & Co Limited

Nominated Adviser & Broker

Tel: 020 7584 3663

  Chairman's Statement

This is my first statement as Chairman following the takeover of The Local Radio Company plc by UKRD group last month. The advertising environment remains difficult in the radio industry but we are committed to improving the operating performance of the company. 

Operational Developments

The Local Radio Company has been undertaking a major restructuring within its operations, including the sale of its Jazz FM franchise, and since the takeover we have continued this strategy.

The enlarged board has been undertaking a financial review of the company's portfolio and will be implementing changes with a view to making the company trade profitably by the end of the year. Within the last several weeks the company has disposed of four radio stations, Fire Media Limited, Silk FM Limited, Arrow FM Limited and Sovereign Radio Limited. It has also announced the closure of Mix 107. 

We will continue to review costs and make efficiencies wherever possible.

Financial Performance

In the six months to March 2009 turnover was £6.0m from continuing activities excluding the five stations mentioned above. Due to accounting rules the income statement includes these under continuing activities. The pro forma numbers below include these stations under discontinued activities to provide a more accurate picture of the underlying performance of the group's businesses.

	6 months to 31 March 2009			6 months to 31 March 2008			Year to 30 September  2008
	Continuing	Discontinued		Continuing	Discontinued		Continuing	Discontinued
	£'000	£'000		£'000	£'000		£'000	£'000
Revenue	5,966	1,005		6,353	1,158		12,514	2,226
Gross Profit	4,401	711		4,704	872		9,252	1,628
Loss on operations*	(711)	(302)		(523)	(296)		(965)	(762)

*Loss on operations is stated before amortisation of intangible assets - see note 5.

First Radio Sales 

First Radio Sales, the airtime sales company representing 133 stations across the UK, in which the Group has a 50% share, has been particularly hard hit by the economic downturn in the first six months of the year. Commission revenues decreased by 20% to £990,000. However First Radio Sales is still trading profitably and is the third largest sales point in radio.

Outlook

Whilst trading conditions remain difficult and the advertising market remains depressed, the board has taken and continues to take action to restructure the business and reduce its cost base. On balance, the board believes that following the restructuring and with some further operational improvements the Group will be able to operate profitably and benefit from the upturn when it arrives.

Trevor Smallwood

Chairman

  Unaudited condensed consolidated income statement for the period ended 31 March 2009

		Unaudited	Unaudited
		6 months to	6 months to	12 months to
		31 March 2009	31 March 2008*	30 September 2008*
		£'000	£'000	£'000
REVENUE		6,971	7,511	14,740
Cost of sales		(1,859)	(1,935)	(3,860)
		________	________	________
GROSS PROFIT		5,112	5,576	10,880
Administrative expenses		(9,157)	(6,395)	(16,776)
		________	________	________
LOSS ON OPERATIONS		(4,045)	(819)	(5,896)
Finance income		2	46	51
Finance expense		-	(1)	(2)
Share of profits/(losses) of associates/joint ventures		127	202	300
		________	________	________
LOSS ON CONTINUING ACTIVITIES		(3,916)	(572)	(5,547)
BEFORE TAXATION
Tax expense		-	-	-
		________	________	________
LOSS FOR THE PERIOD ON CONTINUING ACTIVITIES		(3,916)	(572)	(5,547)
Profit/(Loss) from discontinued activities		(732)	(399)	(1,389)
		________	________	________
LOSS FOR THE PERIOD		(4,648)	(971)	(6,936)
Attributable to:
Equity holders of the parent		(4,648)	(931)	(6,899)
Minority interest		-	(40)	(37)
		________	________	________
(Loss)/Earnings per share attributable to the equity holders of the parent during the period
Basic and diluted		(6.46)p	(1.29)p	(9.63)p
Continuing operations
Basic and diluted		(5.44)p	(0.74)p	(7.70)p
Discontinued operations
Basic and diluted		(1.02)p	(0.55)p	(1.93)p
* Restated for operations treated as discontinued in later periods

  Unaudited condensed consolidated statement of changes in equity for the period ended 31 March 2009

	Share	Other	Retained	Total	Minority	Total
	Capital	Reserves	Earnings		Interest	Equity
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 September 2008	2,880	287	6,423	9,590	-	9,590
Changes in equity for period
Loss per period and total recognised loss	-	-	(4,648)	(4,648)	-	(4,648)
Share Based Payment	-	-	43	43	-	43
	_____	_____	______	______	______	______
Balance at 31 March 2009	2,880	287	1,818	4,985	-	4,985

  Unaudited condensed consolidated balance sheet as at 31 March 2009

		Unaudited		Unaudited
		At 31 March 2009		At 31 March 2008		At 30 September 2008
		£'000	£'000	£'000	£'000	£'000	£'000
NON-CURRENT ASSETS
Goodwill			3,111		10,457		6,143
Property, plant and equipment			881		1,548		1,040
Investment in joint venture			2,533		2,451		2,582
Investments in Associates			11		47		15
			______		______		______
TOTAL NON-CURRENT ASSETS			6,536		14,503		9,780
CURRENT ASSETS
Trade and other receivables		2,836		2,758		3,058
Cash and cash equivalents		524	______	2,032	______	566	______
			3,360		4,790		3,624
			______		______		______
TOTAL ASSETS			9,896		19,293		13,404
LIABILITIES
CURRENT LIABILITIES
Trade and other payables		4,911		3,736		3,814
			______		______		______
			4,911		3,736		3,814
			______		______		______
TOTAL LIABILITIES			4,911		3,736		3,814
			______		______		______
TOTAL NET ASSETS			4,985		15,557		9,590
Capital and reserves attributable to equity holders of the company
Share Capital			2,880		2,880		2,880
Other Reserves			287		489		287
Retained Earnings			1,818		12,215		6,423
			______		______		______
			4,985		15,584		9,590
Minority Interest			-		(27)		-
			______		______		______
TOTAL EQUITY			4,985		15,557		9,590

  Unaudited condensed consolidated cash flow statement for the period ended 31 March 2009

		Unaudited		Unaudited
		6 months to		6 months to		Year to
		31 March 2009		31 March 2008*		30 Sept 2008*
		£'000		£'000		£'000
LOSS BEFORE TAXATION		(3,916)		(572)		(5,547)
Loss of discontinuing operations		(732)		(399)		(1,227)
Finance income		(2)		(46)		(51)
Finance expense		-		1		2
Share of profits/(losses) of associates/joint ventures		(127)		(202)		(300)
Provision of share based payments		43		39		88
Depreciation		220		289		532
Profit on disposal of Property, Plant & Equipment		(426)
Amortisation		3,032		-		4,170
		______		______		______
Cash flows from operating activities before changes in working capital and provisions		(1,908)		(890)		(2,333)
(Increase)/Decrease in debtors		238		393		(191)
Increase/(Decrease) in creditors		1,071		(172)		185
		_____		_____		_____
CASH GENERATED FROM OPERATIONS		(599)		(669)		(2,339)
INVESTING ACTIVITIES
Dividends from JVs		200		350		350
Finance income		2		46		51
Purchase of Fixed Assets		(232)		(123)		(214)
Purchase of Fixed Assets investments		(36)		-		-
Sale of Fixed Assets investments		623		-		-
Disposal of subsidiary undertaking		-		-		252
		_____		_____		_____
NET CASH FROM INVESTING ACTIVITIES		557		273		439
FINANCING ACTIVITIES
Finance expense		-		(1)		(2)
Share premium write off costs		-		(39)		-
		_____		_____		_____
NET CASH FROM / (USED IN) FINANCING ACTIVITIES		-		(40)		(2)
		_____		_____		_____
NET INCREASE / (DECREASE) IN CASH		(42)		(436)		(1,902)
CASH AT BEGINNING OF PERIOD		566		2,468		2,468
CASH AT END OF PERIOD		524		2,032		566
* Restated for operations treated as discontinued in later periods

  Notes to the unaudited condensed financial statements for the period ended 31 March 2009

1    General

The Local Radio Company PLC is a public limited company ('the Company') incorporated in the United Kingdom under the Companies Act 2006 (registration number 4931007).

The Company is domiciled in the United Kingdom and its registered address is 11 Duke Street, High Wycombe, Buckinghamshire, HP13 6EE. The Company's Ordinary Shares are traded on the Alternative Investment Market ('AIM').

 The Group's principal activity is that of operating local radio licences and developing ancillary revenues including, but not exclusively, web, digital, concert and other entertainment related activity.

2    Basis of preparation

These unaudited financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRS's) issued by the International Accounting Standards Board (IASB) as adopted by the European Union (Adopted IFRS's) and with those parts of the Companies Act 2006 applicable to companies preparing their accounts under Adopted IFRS's.  The accounting policies and computation methods used in these statements are the same as those used in preparing the financial statements for the year ended 30 September 2008.  

The results for the Group for the six months ended 31 March 2009 and the comparative results for the six months ended 31 March 2008 are unaudited. The financial information contained herein does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

The comparatives for the year ended 30 September 2008 have been derived from the Company's full statutory accounts for that period. A copy of those statutory accounts for that period has been delivered to the Registrar of Companies. The auditors' report on those accounts was unqualified, but included a reference to the going concern basis of preparation which the auditors drew attention to without qualifying their report.

3    Going Concern

The financial statements have been prepared on a going concern basis. In considering the appropriateness of the going concern assumption, the directors have taken into consideration the operational developments referred to in the Chairman's statement and the Group's cash flow forecasts. The board are satisfied that these measures will enable the group to continue to trade for the foreseeable future.

4    Loss per share

		March 2009	March 2008	September 2008
		Total	Total	Total
Loss for the year (£000)		(4,648)	(931)	(6,899)
Weighted average number of shares	(Basic)	72,001,588	72,001,588	72,001,588
Basic loss per share		(6.46)p	(1.29)p	(9.63)p

5    Loss on ordinary activities before taxation is after charging:

	6 months to	6 months to	Year to
	31 March 2009	31 March 2008	30 September 2008
	£'000	£'000	£'000
Depreciation	206	224	436
Impairment and amortisation of intangible assets	3,032	-	4,169
Equity settled share based payments	43	39	88

6    Tax on loss on ordinary activities

No tax has been accounted for in the period as there are sufficient losses and capital allowances brought forward to reduce the charge to nil, on the basis that the tax charge for the half year is estimated on the basis of the anticipated tax rates applying for the full year.

7    Copies of Interim statement

A copy of this statement is available to view and download from the Company's website at www.thelocalradiocomany.com.  

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