Avon 'disappointed’

Press, 3 June 1981, Page 25

Avon 'disappointed’

The results of Radio Avon, Ltd< for the year .ended Mdr.ch 31 are disappointing especially, the-small increase in advertising revenue;the chairman (Mr 'P. L> Mortlock) said in the annual report. The tax-paid, profit is actually worse: than announced in the preliminary report. It fell 25.1 per cent to 5125,501 whereas the rounded unaudited net profit was previously reported at $135,000. Mr Mortlock said that an error was made in calculating tax liability at the time. The result is * after tax of $124,027 and depreciation of $45,300, a write-down of the value of the stake in Lake Ohau Ski Field, Ltd, by $BlOO and associated company losses of $lOl7 from Lake Ohau. Revenue rose 2.9 per cent

to $1,720,000. The cost of operating Radio Avon rose $137,000 to $1,450,000. ' ?. The directors recommend a final dividend of 20 .per cent, (5c a 25c share) making a total 40 per cent for the year compared with 50 per cent last year. . Mr Mortlock said that much attention has been devoted by management and directors to the station's programmes, and changes made are expected to be reflected in improved ratings for the remainder of the current year. Referring to associated interests. Mr Mortlock said that Avon has taken a 24.9 per cent interest in Radio Foveaux. As the newly commissioned Invercargill independent station will run a loss for the current year there will be a reflection in

the declared profit of the Christchurch company, Mr Mortlock warns. Avon also took up a 22 per cent interest in Radio Otago. Ltd, which operates stations at Dunedin, Alexandra, kanaka and Queenstown. Lake Ohau Ski Field Company is envisaging development over a decade, contingent upon improved financial position. The directors have taken "realistic steps to improve the company's performance and expect that byOctober 31. the end of Ohau’s financial year, a break-even situation will have been achieved." In reply to critics who claim that private radio stations have been granted warrants to print money. Mr Mortlock said that Avon devoted 5100 minutes of air time to freely publicising community activities, charitable and otherwise. "Those minutes represent 1.6 hours each week and in money terms they represent more than $200,000 in the course of the year.”