Country Mix in €350,000 shortfall still a 'going concern'
RADIO station Country Mix had net liabilities of close to €350,000 at the end of last year, but insisted it should be treated as a "going concern" in view of an upcoming merger with East Coast Radio.
The €350,000 shortfall is revealed in accounts just filed for Star Broadcasting Ltd, and comes after the station lost about €70,000 last year.
In notes to the accounts, Star Broadcasting's auditors say the financial position creates a "material uncertainty which may cast doubt about the company's ability to keep trading as a going concern".
"The financial statements, however, have been prepared on a going-concern basis in view of the continued support from shareholders and the process for an Irish radio station to acquire the company."
Sean Ashmore, who is in line to head up the enlarged Country Mix / East Coast group, yesterday said the deal was expected to go to the Competition Authority before the end of September. It has already been approved by the Broadcasting Authority of Ireland.
Asked about last year's trading, Mr Ashmore said the €70,000 loss was probably "our best year". "I doubt many other radio stations could say that about 2009," he added.
Mr Ashmore said 2010's losses were likely to be "in line with" last year's despite recent listenership gains. "I don't think any stations are really seeing any big improvement in the (advertising) market," he said.