Avon result improved

Press, 27 November 1986, Page 25

Avon result improved

Below-the-line profits have boosted the halfyear result of Radio Avon, Ltd, now in profit.

For the six months ended September 30, the directors report an unaudited, after-tax profit of $170,000, compared with a loss of $33,100 in the corresponding six months of the previous year. In the result is a profit of $139,604 on the sale of investments, and a liability, the provision of $20,000 for legal expenses in applying for an FM

warrant. It is believed the sale is the bringing into the accounts of the final portion of profit made on the sale of the company’s shares in Radio Otago and Foveaux Radio, but directors could not be reached for confirmation last evening.

Trading profit at $48,880 compares with a loss of $17,400 in the previous corresponding period. Sales, at $736,114, were marginally up on the previous year’s $726,158,

and expenses, at $687,234, were down from $743,550. The chairman, Mr Robert Stewart, says that in the latest McNair-Iris audience survey Radio Avon had made gains towards its goal of being the leader in the audience of Christchurch women aged from 25 to 44. In the 6 a.m. to midnight slot Radio Avon was second in popularity with women over 20 and men and women over 25.

He says the introduction of a second FM station in Christchurch will not af-

fect Avon’s audience significantly. However, with four commercial stations in Christchurch, trading could be difficult until the market “absorbed the new situation.”

Mr Stewart forecasts that the second half of the year will be “similar or better” in trading profit.

“With cash reserves of more than $400,000, the company is in a very strong position for the future,” he adds.