Advertising boost helps Chrysalis return to profit

Chrysalis Group, the media company with interests ranging from radio to music publishing, yesterday unveiled its first full-year profit in six years.

Chrysalis Group, the media company with interests ranging from radio to music publishing, yesterday unveiled its first full-year profit in six years.

However, the newly appointed chief executive, Richard Huntingford, said the group would return to the red this year due to an £18m new media investment drive.

For the year to August, Chrysalis rode a strong radio advertising market and buoyant trading in its music and television production arms to produce a £1m pre-tax profit versus a pre-tax loss of £5.9m a year ago.

Total sales jumped 25 per cent to £168m as Chrysalis Radio - the fourth-largest UK radio group, with the Galaxy and Heart brands - reported a 35 per cent rise in sales to £37m. Its stations attract a weekly audience of 4.7 million for a 7.9 per cent share of the commercial radio listening audience.

Chris Wright, the chairman and co-founder, said: "We will continue to outperform the radio industry. We are very well placed in the intervening period before new [broadcasting ownership] legislation to grow our businesses whether organically or through acquisitions."

Chrysalis stock added 8.5p to 297p. The shares hit a high of 415p in January.

Visual entertainment, including production of programmes such as Midsomer Murders and Channel 4's Football Italia, increased its turnover 14 per cent to £58m. A previous year operating loss of £2.5m was replaced with operating profit of £500,000, with the company saying stronger controls would be introduced to boost margins which lag the industry.

Lisa Gordon, chief executive of new media, said the online strategy was fully funded. "We feel the funds we received are sufficient. We envision making less than half-a-dozen new media investments. We believe management resources are more important than the cash we bring."

The group's Web investments include Puremix.com, a multi-channel Net radio site, and Rivals, a network of unofficial sports team sites.