Chairman’s Report 30th September 1982
Finance
The year to which this report relates is the second year of operation. The original forecast presented in our application to the IBA was for a loss of £32,000; it is therefore encouraging to report a profit of £67,390 in the profit and loss account. This places your company £185,720 ahead of forecast over our first two years of trading. This result has been achieved against a deepening recession which has affected the results of other companies within the industry. Costs have continued to rise but these have been well absorbed by the increase of revenue. Gross sales are up by 41 percent at £708,185 (£500,721). Comparing this year (1981/1982) with the previous year (1980/1981) our company has achieved a higher net advertising revenue than any other ILR station which I considered to be an excellent performance and must agar well for the future.
Managerial
Changes in senior management are not unusual in this rapidly expanding industry as career opportunities present themselves with the opening of new stations. We have been fortunate in maintaining our team until recently when we lost the services of Mr Maurice Vass our Managing Director and Mr Jeff Winston our Programme Controller. This joint resignation would have placed our company in a serious situation had we not had the full support of the staff who magnificently rose to the occasion and maintained our output. We were also fortunate in obtaining the services of Mr Bob Kennedy, a former Director of DevonAir, who has acted as general manager on a consultancy basis. I am sure you will join me in thanking Maurice Vass for the strenuous efforts he made for our company during his period with us. It was his shrewd management of finances which has placed our company in the favourable position in which we find ourselves today. I am pleased to welcome Mr Kenneth Whitaker as Managing Director and Mr David Cousins as Station Controller.
Programming
Our broadcasting team have received special praise for news coverage, sport and general standards of presentation. Mixed friendliness and informality, with a sense of pace and energy have been a major strength throughout. This has been achieved against a background of staff changes which makes the performance more credible. The twinned operation continues to function satisfactorily giving a true local service in both areas. Once again our DevonCare Day was successful. This time we received over £15,000 with more still to come. In consultation with local authorities we have selected a number of organisations concerned with the needs of children and it will be through these bodies that the funds will be distributed. The DevonAir team who gave their time, energy and devotion to organising the fund-raising through a radio auction are to be praised and congratulated for their generous efforts.
Technical
The highest technical standards set by the IBA have been maintained. A computer has been installed and is now effectively being used by the traffic and sales departments. As suitable software is not available the task of programming the computer was given to our chief engineer Mr Nick Johnson and I believe it is correct to say that are we have the most advanced systems on the network.
Our contract with the IBA
Early in 1989 the IBA is required to reopen our franchise to public competition, under the new broadcasting legislation. Until this time, a rollover of this contract can be given on a biannual basis. I am pleased to inform you had a rollover has just been granted by the IBA due to the satisfactory performance of our company.
Repayment of loan stock
In accordance with the company’s articles of association, no dividend is recommended until loan stock has been repaid. Your directors consider that the financial situation of the company justifies a return of a further 20 percent of the original loan stock and makes his recommendation accordingly. If approved at the annual general meeting, the amount of £59,260 will be paid from cash reserves.
Chairmanship
I have had four very interesting and happy years has your chairman. During his period we obtained the Torbay/Exeter franchise, brought into being the world’s first twinned radio system and operated the two station successfully for two years. Now we have a new two-year rollover from the IBA and a new management team ready to take on the challenges ahead, some of which will come from BBC radio and breakfast television. I now feel that this is the appropriate time to hand over the chair to another member of the board. At the AGM to be held on Thursday 10th of February 1983, I intend to tender to you my resignation as Chairman and in so doing, recommend to you Sir Ian Amory as my successor. This recommendation has the full approval of the board. I would like to thank my colleagues for valuable support they have given me during my years of office and also to the staff of DevonAir, particularly the founder members, who have given so much during the formative years. I wish to remain a director and shareholder of the company for the present and play a supporting role placing my experience for the benefit of the company.
Norman Devonport
(At the AGM in February 1983 Norman Devonport resigned as Chairman, he died five months later on board his boat ‘Devon Dawn’.)