Capital predicts year of pressure

CAPITAL Radio said today that it cannot accurately forecast its advertising revenues for next month, never mind next year, as it reiterated its assumption that the ad market will remain under pressure for another year.

Chief executive David Mansfield said the current market was 'very tough' and he expected radio revenues to show a 7% fall in October and November over the previous year.

As foreshadowed in its September trading statement, Capital's profits fell 27% to £30.1m after adjusting for the sale of Border TV. Revenues for the year to end-September were down 1% at £123m and underlying earnings fell 26% to 26.3p. The dividend is unchanged at 18.5p a share.

Mansfield said the group had increased its adult audience by 5% to 8.5m and done better than the rest of the industry during the second half of the year.

He said he remained confident of the long-term prospects for radio advertising and committed himself to 'aggressively expanding our national presence'.

The shares rose 10p to 777 1/2p.