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Radiotrust drops to pounds 21,000 half-time loss

Alison Eadie
Friday 16 October 1992 23:02 BST
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RADIOTRUST, the investment trust that invests in quoted and unquoted radio companies including Radio Solidarity in Poland, continues to suffer from the effects of the depressed advertising market.

In the half-year to the end of July it made a loss before tax of pounds 21,400 against a profit in the previous first half of pounds 12,000. In the last full year Radiotrust lost pounds 47,000. The net asset value fell to 49.9p per share from 56.7p at the end of first-half 1991. There is again no interim dividend.

Radiotrust has 90 per cent of its assets spread between 10 companies. Although none of its investments have gone bust, they have been slashing costs to cope with the slump in advertising.

The chairman, Alistair Shaw, said that when the long-awaited upturn came, 'those radio groups which have successfully reduced overheads whilst retaining the loyalty of their listeners are likely to register significant improvements in profitability'.

He added that the radio sector would be one of the first to respond to an improving economic climate and at that time Radiotrust's portfolio would begin to show an increase in value. There are few opportunities for new investment because nobody is prepared to sell at the bottom of the cycle.

Radiotrust pared administrative expenses by 17 per cent to pounds 75,700 in the half-year. The directors and managers have also cut their fees from this month.

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