In its trading update issued today, The Local Radio Company report they have closed their Enterprises Division, which staged large outdoor concerts on behalf of stations.
The head of the Division, Simon Cooke, will leave the Company and will stand down from the Board with immediate effect.
Many of the concerts were individually successful, but over supply and increasing regulation has meant a net loss for the group of approximately of £250,000.
TLRC said in June that they are pursuing a number of strategic options to increase shareholder value – and so far has included the disposal of loss-making station 107.2 Win FM which was sold to Tindle Radio for £400,000. In addition, they are continuing to cut costs across the group, reducing staff numbers by making increasing use of technology in such areas as programming and news provision. The effect of these changes, along with other cost reductions, will initially amount to a reduction in total group overheads in a full year of over £500,000. We expect to reduce our cost base further during the year.
New station Durham FM made its first operating profit before group charges after only 10 months trading.