DevonAir Radio in Crisis

The early clashes in the history of DevonAir were notable and changed the face and direction the station took early on: 
Your Angry Radio Station
Radio Chief May Be On The Move – 1982
DevonAir: No Board Pressure – 1982

Even more serious fights and battles followed throughout the turbulent franchise of DevonAir Radio:
Recession and Competition Hit Local Radio Revenue – 1984
DevonAir Acts to Meet Losses – 1985
Radio in Strike Threat – 1986
DevonAir is to be taken over – 1987
DevonAir forced to ax jobs – 1990
Cousins ​​quits radio station – 1991
DevonAir in merger with Plymouth Sound – 1991
DevonAir staff are stunned as the station loses its license – 1993

Your Angry Radio Station – 1982

“DevonAir, the Exeter based radio station, has been hit by a major dispute between the staff and the directors.

Senior staff members are threatening to resign unless there is a boardroom reshuffle. Already the program controller, Jeff Winston, has quit.

Mr. Winston, who joined DevonAir two years ago when it opened, attracted great loyalty from his staff in all departments. Many were in tears when the news broke last week of his sudden departure.

The man at the center of the controversy is Mr. Maurice Vass, the managing director. Mr. Vass and Mr. Winston have had many arguments about the way the station is run.

Now senior staff have told Mr. Vass and other board members they do not want him to stay.

In a hastily called conference on Friday department heads threatened to resign. But the directors closed ranks and company chairman Mr. Norman Devonport began a three week holiday the next day.

What the main concerns of the staff is that although the station made a profit in the first year of operation – an unusual achievement for a new radio station – little money is available for developing programs.

In addition when features Editor Mike Joseph was promoted to Head Of Current Affairs recently he was not given any increase in salaries.

And although inducements were made to stop presenter Travis Baxter switching to the BBC it is claimed these have not yet been fulfilled.

On the other hand, a new £13,000 company Rover car has been bought for the chairman Norman Devonport.

It is widely felt among the staff that the directors have been shielded from the problems faced by the staff.

One former employee told the Exeter Weekly News “it was a constant struggle to get money to do things.

“When people from the community came in to help present shows or speak they were not paid – even for expenses.

“Staff were constantly doing things for the improvement of the station and to be loyal to Jeff Winston. They did this because there was a tremendous feeling of goodwill towards the station.”

The recent unrest has been reflected in the station’s high turnover of staff, most notably the departure of Peter Barraclough who was Head Of News.

During the very busy summer, the station’s news room relied heavily on freelance reporters and correspondents.

A staff spokesman pointed out that the minimum of industrial action was taken during the recent day of action over a national pay claim to avoid causing too much upset at DevonAir.

He added “We have been betrayed and there is a feeling that many people will leave DevonAir unless Mr. Vass goes first.”

DevonAir now faces the challenge from BBC Radio Devon, who will be opening their new station early next year, just up the road from DevonAir in St. Davids Hill.

The speaker went on “We were gearing ourselves up to the new BBC challenge. In the past two years we have become a very successful independent station, with some of the highest listening figures in the country.

“Unless urgent action is taken the rot will set in and DevonAir will decline. The BBC must be rubbing their hands with glee at this news.”

A move for Mr. Winston has been on the cards for more than a month, since he was offered the job as overall chief at the Welsh Cardiff Broadcasting Company .

Mr. Winston will shortly be taking up that post, but many of the staff at DevonAir are convinced he would never have left the station if it were not for the endless arguments between himself and directors.

Mr. Winston declined to comment on his situation but said he was sorry to be leaving.

Mr. Vass this week refused to comment on the situation.

Context and Background

DevonAir faced increasing turmoil due to disagreements between the station staff and its directors. The core issue highlighted in the article is a major dispute between senior staff members and the board of directors.

Staff Grievances and Dissatisfaction

The article captures a deep sense of frustration and discontent among the station’s senior staff:

1. Threat of Resignation:
   • Senior staff members were reportedly threatening to resign unless substantial changes were made. This indicates the depth of dissatisfaction and a severe breakdown in trust between the staff and the management.
2. Program Controller’s Frustration:
   • Jeff Winston, the Program Controller, seems to be a central figure in the conflict. He is quoted as feeling deeply betrayed by the lack of support from his own staff, suggesting internal divisions and a sense of abandonment within the station.
3. Financial Mismanagement Allegations:
   • There is a clear feeling among the staff that the company’s financial priorities were misaligned. While the article states that certain department heads faced budget constraints, the directors apparently made questionable financial decisions:
     • Purchase of a new Rover car for the chairman, Norman Davenport.
     • The staff’s operational perception was that the directors prioritised luxury and personal gain over the needs of the station.

Leadership and Communication Breakdown

1. Chairman’s Actions:
   • The article suggests a lack of effective leadership from Chairman Norman Davenport. His decision to take a three-week holiday amid escalating tensions was seen as irresponsible, aggravating the staff’s resentment.
   • This absence is perceived as a refusal to confront the growing problems at DevonAir, further deepening the rift between the management and the workforce.
2. Directors Shielded from Staff:
   • The directors appeared to be isolated from the ground-level challenges faced by the employees, suggesting a disconnect in the communication flow. One former employee’s comment implies that directors lacked awareness of the operational difficulties.

Work Environment and Morale Issues

1. Wage Discrepancies:
   • The article highlights that some employees had not been paid, leading to severe financial strain. In particular, freelancers and part-time workers faced payment delays, which would have impacted their motivation and loyalty.
2. Unpaid Staff:
   • It is reported that even expenses were not being reimbursed, showing a complete disregard for basic financial obligations. This lack of payment was likely to foster a sense of exploitation among the workers.
3. Lack of Career Development:
   • The staff expressed concerns about limited opportunities for advancement. The lack of investment in training and promotion is indicative of a workplace culture that neglects employee growth.

Public Perception and Media Scrutiny

1. Local Press Involvement:
   • The article was published in the Exeter Weekly, a local newspaper, suggesting that the turmoil at DevonAir had spilled into the public domain. The airing of internal issues in the press would have added pressure on the management to address the problems.
2. Competition with BBC Radio Devon:
   • The launch of BBC Radio Devon posed a significant threat to DevonAir. This competition likely exacerbated the internal issues, as staff morale was already low, making it difficult to compete effectively.

Conclusion and Future Outlook

The article ends on a pessimistic note, suggesting that unless swift action was taken, the situation would worsen. Staff members feared a mass exodus, with many planning to leave if there were no changes. The closing sentiment reflects the disappointment and frustration felt by employees who had been loyal to the station, only to feel let down by mismanagement and neglect.

Summary of Feelings Among DevonAir Staff in 1982

• Frustration: Due to lack of support, financial mismanagement, and ineffective leadership.
• Betrayal: Particularly felt by senior staff who had invested in the station’s vision but were left out of important decisions.
• Disillusionment: The promises of a dynamic and supportive work environment were unmet, many staff members lost faith in the company.
• Anger: The title of the article itself, “Your Angry Local Radio Station,” encapsulates the general sentiment of the workforce—anger directed towards the directors who were seen as out of touch and self-serving.

The internal conflict described paints a picture of a station at a critical juncture, with a demotivated workforce and leadership that appeared disconnected from the reality faced by their employees. This article serves as a stark reminder of the importance of transparent, communicative, and empathetic leadership in the media industry.

Radio Chief May Be On The Move – 1982

DEVONAIR, the Exeter and Torquay-based Westcountry independent local radio station, may be in for more changes at the top.

It is believed the station’s founder-chairman, Mr. Norman Devonport, may be vacating the chair at the company’s annual meeting in February.

Mr. Devonport is said to have been under fire from some of his co-directors over recent senior staff changes, including the departure of the managing director, Mr. Maurice Vass, to a similar post with the larger Leicester local station — and before that the move of programme controller Mr. Geoff (Jeff) Winston to be managing director of the Cardiff station.

Two directors being tipped to succeed Mr. Devonport if he does leave the chair are Sir Ian Amory, of Tiverton, and Mr. Ken Holmes, of Paignton, a Devon industrialist.

Asked if a boardroom reshuffle was likely, the company secretary, Mr. Hamish Turner, said: “There is nothing that can be said at this stage. There may be changes which will come about at the annual meeting in February. No changes are envisaged until the annual meeting.”

Mr. Devonport said that while he did eventually intend to give up the chairmanship he did not yet have a date in mind — although he has already bought a boat to do some extensive overseas cruising. Reports that he had been under fire from his board were incorrect.

“My concern at present is to see the station well set up for the second phase of its development,” he declared.

Until a new managing director is appointed, Mr. Bob Kennedy, a former director of Standard Broadcasting, is at DevonAir acting as caretaker MD.

The article here titled “Radio chief may be on the move” was published in the Western Morning News on the 29th of November, 1982. It discusses the potential changes in leadership at DevonAir.

The article centres around the potential departure of Norman Davenport, the founder-chairman of DevonAir. It suggests that the station is entering a period of significant transition and may be on the cusp of a major leadership reshuffle, which could have a substantial impact on its operations and internal morale.

Analysis of Staff Feelings and Company Dynamics

1. Tension Among Leadership:
   • The article notes that Mr. Davenport has come under criticism from his own co-directors. This criticism appears to stem from dissatisfaction over recent senior staff changes, indicating a fractured leadership team and disagreements about the direction the station was heading.
2. Senior Staff Departures:
   • Key matches are highlighted, including:
     • Maurice Vass, the former Managing Director, who left for a similar position at a larger local station in Leicester.
     • Jeff Winston, the Programme Controller, who moved on to become the Managing Director of the Cardiff station.
   • These departures are significant because they involve senior figures crucial to the station’s day-to-day operations and strategic direction. Such exits likely created a vacuum in leadership and decision-making, leaving the remaining staff feeling uncertain and insecure about their future.
3. Uncertainty About Davenport’s Future:
   • The article speculates about Norman Davenport possibly stepping down at the annual company meeting in February. While Mr. Davenport himself states that he has not yet set a date for his departure, he mentions plans for overseas cruising, suggesting that he is considering retirement or at least a step back from active management.
   • This speculation would have contributed to a sense of instability and concern among the staff, as the potential loss of their founder-chairman during a time of existing turmoil might seem like an abandonment of leadership when the station needed stability.

Responses from the Company

1. Comments from Hamish Turner:
   • Hamish Turner, the Company Secretary, provides a cautious response when asked about a possible boardroom reshuffle. He states that no immediate changes are expected before the annual meeting in February.
   • This non-committal statement suggests a lack of transparency from the management, likely leaving the staff feeling left in the dark and fueling rumors and uncertainty.
2. Davenport’s Position and Intentions:
   • Mr. Davenport attempts to downplay the speculation, denying that he is under pressure from the board. He insists that his current focus is on setting up the station for the next phase of development, but the article hints that his stance may not reflect the reality of the situation.
   • His denial of being under fire from the board contrasts with earlier parts of the article, which imply significant internal disagreements. This discrepancy suggests either a PR move to maintain an image of stability or a disconnect between Davenport’s perspective and the experiences of others within the company.

Possible Successors and Implications

1. Potential Replacements for Davenport:
   • The article mentions two possible candidates tipped to succeed Davenport:
     • Sir Ian Amory, from Tiverton, indicating an individual with strong local connections.
     • Ken Holmes, an industrialist from Paignton, suggesting a business-oriented approach to leadership.
   • The mention of these figures implies a potential shift in leadership style, possibly moving from the founding vision of Davenport to a more commercially focused direction.
2. Interim Leadership Arrangements:
   • Until a permanent replacement is appointed, Bob Kennedy, a former director of Standard Broadcasting, is named as the acting caretaker Managing Director.
   • Kennedy’s temporary appointment likely added a layer of uncertainty and interim management concerns, with staff unsure about the long-term vision and stability of the station.

Public Sentiment and Media Perception

1. Impact on Staff Morale:
   • The internal disputes and leadership changes, combined with the public airing of these issues, likely created a tense work environment. Employees may have felt demoralised by the lack of clear direction and the departure of key figures whom they trusted.
   • The ongoing rumours about Davenport’s potential exit and the uncertainty around new leadership would have compounded feelings of instability and insecurity among the station’s employees.
2. Local Media Involvement:
   • The article’s publication in the Western Morning News, a local newspaper, highlights that the internal issues at DevonAir had become a matter of public interest. This media scrutiny would have put additional pressure on the board to clarify their position and resolve the issues swiftly.

Conclusion and Broader Implications

The article suggests that DevonAir was at a crossroads in late 1982, facing significant internal challenges, leadership disputes, and an uncertain future. The staff’s feelings can be summarised as follows:

• Insecurity: The frequent changes in senior management created a sense of instability, making it difficult for staff to feel confident about their roles and the station’s future.
• Frustration: The apparent lack of clear communication and decision-making from the board left employees feeling disconnected and disheartened.
• Concern for the Future: With rumours of Davenport’s departure and the absence of a clear successor, there was likely widespread concern about the direction the station would take, especially in the face of growing competition.

The situation at DevonAir in 1982, as described in the article, reflects broader challenges often faced by young independent radio stations during this era, including leadership struggles, financial pressures, and the difficulties of adapting to a rapidly evolving media landscape.

DevonAir: No Board Pressure – 1982

Directors of the Exeter and Torquay-based independent local radio station, DevonAir, have not put their chairman, Mr Norman Devonport, under pressure to resign. This was stated by the board of DevonAir today.

The board was replying to a report in the Express and Echo on Saturday that the chairman had been under fire from fellow directors over recent senior management changes at the station, and that he had offered to resign from February next.

Today’s statement, issued by DevonAir’s company secretary, Mr Hamish Turner, said: “The board of DevonAir noted with great concern the report appearing in the Express and Echo on Saturday, November 27.

“Allegations that the board was pressurising the chairman to stand down are untrue. Mr Norman Devonport has felt for some time that his intention of engaging in extensive overseas cruising in the Mediterranean and elsewhere was incompatible with the demands of his role as chairman of DevonAir.

“He considers that the task he undertook of steering the company to winning the franchise and subsequently overseeing its successful launch as a radio station has been satisfactorily completed, and he would wish to hand over his chairmanship in the near future.

“The innuendo contained in the heading of the article is not in accordance with the facts, and should be corrected.”

The item focuses on DevonAir’s response to earlier reports suggesting that the chairman, Norman Davenport, was under pressure to resign. The article serves as a rebuttal statement from the station’s board, aiming to address the circulating rumours and clarify their stance on Davenport’s position.

Prior news coverage had implied that Norman Davenport, the founding chairman, might be stepping down under pressure from the board due to dissatisfaction with recent management decisions.

Analysis of the Article

1. Denial of Pressure from the Board:
   • The article begins with a clear denial from DevonAir’s directors, asserting that they have not pressured Mr. Davenport to resign. This direct response aims to counter earlier reports suggesting internal conflict and division among the leadership.
   • The fact that the board felt compelled to release a public statement indicates the seriousness of the rumours and the potential impact on the station’s reputation.
2. Response to Previous Media Reports:
   • The board specifically addresses a report published in the Express and Echo on the 27th of November, which claimed that Davenport had been under fire from his co-directors. The board dismisses these allegations as untrue, suggesting that the earlier report contained inaccuracies and misinterpretations of the situation.
   • By directly naming the previous article, the board is attempting to discredit the claims made and reassert control over the narrative.
3. Norman Davenport’s Intentions:
   • According to the statement issued by Hamish Turner, the company secretary, Mr. Davenport had already been considering his resignation independently of any board pressure. He expressed a desire to focus on overseas cruising in the Mediterranean, implying a voluntary and planned exit from his role rather than a forced resignation.
   • This portrayal of Davenport’s intentions aligns with a narrative of a natural transition, suggesting that he feels his responsibilities—particularly in guiding the company through its early stages and securing the radio franchise—have been satisfactorily completed.
4. Concerns About the Article’s Heading:
   • The board’s statement criticises the “innuendo” contained in the previous article’s heading, arguing that it was misleading and not in line with the facts. This criticism reflects a broader concern from the management about how internal matters are being portrayed in the local press, and it underscores the potential damage that sensational reporting can cause.
   • By requesting a correction, the board is taking a proactive stance in defending its position and attempting to mitigate the fallout from negative media coverage.

Feelings Among DevonAir Staff in 1982

1. Confusion and Mistrust:
   • The conflicting reports about whether Davenport was under pressure or planning a voluntary departure likely created confusion among the staff. Mixed messages from the leadership and the media would have contributed to an atmosphere of uncertainty and mistrust.
   • Employees may have questioned the true reasons behind the senior management changes, leading to speculation and unease about the station’s stability.
2. Demoralisation from Unstable Leadership:
   • The public disputes and denials indicate a lack of cohesion at the top level of the organisation. For staff members, witnessing these leadership conflicts would have been demoralising, as it suggested that the company was not united in its vision or direction.
   • The high turnover of senior figures, including the potential resignation of the founding chairman, could have left staff feeling disoriented and anxious about the future.
3. Perception of a Leadership Crisis:
   • Despite the board’s reassurances, the ongoing media coverage of internal issues at DevonAir points to a perception of a leadership crisis. The repeated need for public statements and returns suggests that there were unresolved tensions and a lack of effective communication within the company.
   • Staff members might have felt caught in the middle of a power struggle, unsure whether to trust the official narrative or the reports of internal dissent.

Impact on Public and Media Perception

1. Damage Control by the Board:
   • The article reflects a damage control effort by the board of directors. By issuing a formal statement and denying the allegations, they aim to project an image of stability and unity, despite the earlier reports suggesting otherwise.
   • However, the need for such a statement also indicates that the board was aware of the potential reputational damage caused by the negative press and felt it necessary to take swift action to address it.
2. Transparency and Credibility Issues:
   • The board’s strong denial, combined with the criticism of the previous article’s heading, may have been seen by some as an attempt to suppress dissenting voices or control the narrative. This could have been backfired, leading to further speculation and reducing the credibility of the leadership’s claims.
   • The public might have perceived the board’s defensive stance as evidence that there was indeed trouble behind the scenes, despite their insistence to the contrary.

Broader Implications

The article highlights a critical moment for DevonAir in late 1982, characterised by leadership disputes and conflicting narratives about the reasons behind potential changes at the top. While the board attempts to present a unified front and reassure both the staff and the public, the underlying tensions are apparent.

The mixed messaging and ongoing media coverage likely left the DevonAir staff feeling:

• Disoriented by the conflicting reports about the chairman’s intentions and the true state of internal affairs.
• Uncertain about the future of the company, particularly given the impending potential departure of the founding chairman and the recent senior staff changes.
• Frustrated by the lack of clear, consistent communication from the management, which may have contributed to a perception of mismanagement or a lack of strategic direction.

Overall, the article underscores the challenges faced by DevonAir during this period, as it grappled with internal power struggles, media scrutiny, and the need to maintain employee morale amid a rapidly evolving and competitive broadcasting landscape. The response from the board, while intended to quell rumours, may have only served to highlight the underlying instability, making it clear that the station was in a state of flux and uncertainty.

The resignation of Norman Davenport as chairman of DevonAir at the February 1983 AGM marked the end of an era for the local radio station. Davenport had been a central figure in securing the initial broadcasting franchise and leading the station through its early, formative years. His departure, amid ongoing internal disputes and a climate of uncertainty, meant a major turning point for DevonAir.

A Complex Legacy

Davenport’s leadership was often seen as divisive. On one hand, he was instrumental in the station’s launch, bringing DevonAir to life as one of the early independent local radio ventures in the West Country. His role in shaping its mission and identity cannot be understated. However, the latter part of his tenure was marred by internal conflicts, staff dissatisfaction, and public disputes that revealed cracks in the company’s foundation. The media coverage leading up to his resignation highlighted boardroom disagreements and a leadership struggle that became a matter of public concern.

A Sudden and Tragic End

Only five months after his resignation, Norman Davenport passed away aboard his boat, the ‘Devon Dawn’, during what was likely intended as a period of reflection and personal retreat. His death at sea is both poignant and symbolic, marking a final departure from the turbulence of the corporate world he had navigated with varying success. The circumstances of its passing add a layer of tragedy and finality to the story of DevonAir’s early years, leaving an indelible mark on the station’s history.

The Aftermath and Impact on DevonAir

Davenport’s resignation and subsequent death left a power vacuum at DevonAir, plunging the station into a phase of uncertainty. With the loss of its founding chairman, the company faced the immediate challenge of redefining its leadership and strategic vision. The board had already appointed Bob Kennedy as a caretaker managing director, but a permanent successor had yet to be established, causing unease among the remaining staff and stakeholders. That was successor to be Ken Whittaker who’s time in the role was to be short-lived.

The period following Davenport’s exit was marked by a series of attempts to stabilise the station and refocus its efforts in a competitive market, especially as it faced increasing pressure from rivals like BBC Radio Devon. The shadow of Davenport’s leadership, with its mix of visionary ambition and later conflict, continued to loom large over the company’s operations.

A Legacy of Unfinished Business

Norman Davenport’s story is one of ambition, conflict, and unfulfilled potential. While he achieved the significant feat of bringing independent local radio to Devon, his vision was ultimately compromised by boardroom strife and mounting challenges in the industry. His abrupt resignation and untimely death left many questions unanswered about what might have been had he stayed on to guide the station through its next phase of development.

In retrospect, Davenport’s tenure at DevonAir is a cautionary tale about the pitfalls of early corporate governance in the burgeoning world of independent radio, where personal ambitions, financial realities, and internal politics could easily collide, sometimes with irreversible consequences.

At the AGM in February 1983 Norman Devonport resigned as Chairman, he died five months later on board his boat ‘Devon Dawn’.

Recession and Competition Hit Local Radio Revenue – 1984

DevonAir suffers £150,000 loss

DevonAir suffered a £150,000 loss in the year ended 30 September 1983.

Sir Ian Amory, chairman, told the company’s annual meeting in Exeter that the outlook for this year was optimistic, and that advertising turnover was on target. The annual report showed that turnover had dropped from £746,000 in 1982, to £632,570.

Sir Ian said that the year had been disappointing, with income 15 percent lower as the recession hit advertisers in the Exeter and Torbay areas. At the same time, the company had spent more to combat the competition presented by TSW and the new BBC Radio service.

“The success of our campaign can be measured by the increase in the number of listeners we now have compared with the autumn of 1982,” he said.

Sir Ian recalled that a number of staff who had played a big part in building up the station successfully, had left to join other radio companies early in the year. The extra spending was incurred to maintain standards while the new team settled down. “The combined effect of lower income and higher expenditure produced a loss for the first time since the station opened, of almost £150,000,” he said.

Sir Ian, speaking of the continuing high standards of output, referred in particular to the broadcasts covering the two royal events in Exeter Cathedral: the Royal Maundy service and the St. John Ambulance concert, which were highlights of the year.

Sir Ian praised the generosity of DevonAir listeners in supporting the Devon Care appeal which raised more than £115,000 for charity. Advertising was still difficult to obtain, but income was now on target.

He praised the efforts of Mr. David Cousins, the new programme director, and said that exciting initiatives were being taken, and although spending still needed to be controlled, the board looked forward to making progress during the year.

As already reported, Devon’s other independent local radio station, Plymouth Sound, also suffered a loss last year of £15,000.

Analysis and Explanation

The article from the Western Morning News discusses the financial challenges faced by DevonAir in the year ending September 30, 1983. The station reported a significant loss of £150,000, marking a substantial downturn compared to previous years.

Key Points:

1. Financial Loss and Decline in Revenue:
   • DevonAir suffered a £150,000 loss, a notable financial setback for the station. The article highlights that this was the first time since its launch that the station had recorded such a loss.
   • Turnover Decline: The turnover dropped from £746,000 in 1982 to £632,570, reflecting a significant decrease in revenue.
2. Impact of Recession and Competition:
   • Sir Ian Amory attributed the loss to two main factors: the economic recession and increased competition from TSW (Television South West) and the new BBC Radio service.
   • Advertising income was 15% lower, affecting the station’s financial performance. The recession particularly impacted businesses in the Exeter and Torbay areas, reducing their advertising spend.
3. Staff Turnover and Increased Expenditure:
   • The article mentions that several key staff members left the station to join other radio companies. This departure led to additional expenditure as the station invested in maintaining the quality of its broadcasts while training and integrating new staff.
   • This increased spending, combined with lower revenue, created a double blow for DevonAir’s financials.
4. High Standards and Community Engagement:
   • Despite the financial challenges, Sir Ian highlighted the high broadcasting standards, citing coverage of two significant royal events at Exeter Cathedral: the Royal Maundy service and a St. John Ambulance concert. These events were considered highlights of the year.
   • The station maintained strong community engagement, with listeners contributing generously to the Devon Care appeal, raising over £115,000 for charity. This underscores the loyalty and support of DevonAir’s audience.
5. Positive Outlook and Future Strategies:
   • Sir Ian expressed optimism for the coming year, noting that while advertising income had been challenging to secure, it was now back on target.
   • He praised the efforts of David Cousins, the new programme director, and commended the innovative steps being taken to rejuvenate the station’s offerings.
   • However, he also recognised the need for spending control, suggesting that the station needed to be cautious with its financial decisions to avoid further losses.
6. Comparison with Competitor:
   • The article briefly mentions that Plymouth Sound, another independent local radio station in Devon, also reported a loss of £15,000. Although this figure is significantly smaller than DevonAir’s loss, it indicates that the broader market was facing financial difficulties, not just DevonAir.

Conclusion

The article paints a picture of a challenging year for DevonAir, marked by economic pressures and increased competition. The station struggled with declining advertising revenue and higher operating costs, leading to its first recorded loss since inception. However, the leadership expressed optimism, citing a strong listener base, successful community fundraising, and positive steps taken by the new programme director. The financial difficulties faced by Plymouth Sound suggest that the challenges were not isolated to DevonAir but affected the local radio industry as a whole.

This period can be seen as a critical juncture for DevonAir, highlighting the vulnerability of independent radio stations to economic fluctuations and the importance of strategic leadership and community support in navigating tough financial landscapes.

DevonAir Acts to Meet Losses – 1985

Exeter-based independent local radio company DevonAir is retrenching financially to meet losses suffered during the past two years.

A special shareholders meeting in Exeter on Friday will consider a capital reconstruction which will involve writing down its £1 A and B shares to 10p.

DevonAir, like most of Britain’s ILR (Independent Local Radio) stations, has gone through a bad patch, but the company secretary, Mr. Hamish Turner, said today that under its new managing director, Mr. David Cousins, the company had cut costs and was becoming profitable again.

Reconstruction of shareholdings would enable dividends to be paid on the new 10p shares.

The DevonAir chairman, Sir Ian Amory, will preside on Friday when loan stock holders will be asked to approve the conversion of their remaining holdings into 10p shares.

Mr. Turner said that no dividends could be paid to other shareholders until all loan stock had been repaid. Forty pence in the £ had already been repaid, and the proposal was that loan stock holders should receive six new 10p shares for each remaining 60p in the £.

If the proposals were accepted, the outstanding loan stock, along with A and B shares, would all become 10p shares.

Analysis and Explanation

The article focuses on DevonAir’s financial restructuring efforts in September 1985, aimed at stabilising the company after a challenging period marked by consecutive losses.

Key Points:

1. Financial Struggles :
   • DevonAir had experienced significant financial losses over the past two years. This indicates ongoing difficulties faced by the station, similar to the broader challenges encountered by the UK’s independent local radio (ILR) sector during this time.
   • The article suggests that the economic climate, coupled with rising competition and declining advertising revenue, had impacted many ILR stations, not just DevonAir.
2. Capital Reconstruction Proposal :
   • A special shareholders meeting was called to discuss a major restructuring plan aimed at salvaging the company’s financial standing.
   • The plan involved writing down the value of A and B shares from £1 to 10p. This is a drastic devaluation, indicating that the original share value had decreased significantly due to the financial difficulties.
3. Leadership Changes and Cost-Cutting Measures :
   • Under the new managing director, David Cousins, the company had implemented cost-cutting strategies to curb expenditures and was reportedly on the path to profitability. This highlights a proactive approach by the new management to address the financial challenges.
   • David Cousins’ leadership seems to be a turning point, with the company taking measures to stabilise its finances and reduce operational costs.
4. Shareholder Impact and Dividend Pay-outs :
   • The restructuring plan aimed to enable the company to pay dividends on the newly valued 10p shares. However, it was made clear that dividends could only be paid once the loan stock (debt owed to certain creditors) had been fully repaid.
   • Hamish Turner, the company secretary, explained that 40p in the £ of the loan stock had already been repaid. The proposal was to convert the remaining loan stock into six new 10p shares for every remaining 60p in the £. This suggests a focus on reducing debt obligations before returning any profits to shareholders.
5. Shareholder Vote and Approval :
   • The article mentions that the DevonAir chairman, Sir Ian Amory, would preside over the meeting. The key decision for shareholders was whether to approve the conversion of their remaining holdings into the devalued 10p shares.
   • Approval of this proposal would result in all outstanding loan stock, along with the A and B shares, being converted to 10p shares. This action was necessary to streamline the share structure and provide a clearer financial pathway for the company.

Conclusion

The article reveals a critical phase in DevonAir’s financial history. The company had been struggling with losses for two consecutive years, prompting a need for capital restructuring to prevent further decline. The proposal to write down shares from £1 to 10p reflects the severity of the financial situation, while also highlighting the board’s efforts to stabilise the business and pave the way for potential profitability.

The leadership of David Cousins ​​appears to have initiated a turnaround, with cost-cutting measures starting to show positive results. However, the need for shareholder approval of the restructuring plan suggests that the company was still vulnerable and required collective support to navigate the challenging financial landscape.

In the broader context of the UK’s ILR industry during the mid-1980s, many stations faced similar pressures, driven by economic recession, competition from larger broadcasters, and fluctuations in advertising revenue. DevonAir’s attempts at financial retrenchment and restructuring illustrate the difficulties of sustaining an independent radio station in a rapidly changing media environment.

Overall, the article underscores the precarious nature of DevonAir’s financial standing at the time and the significant steps the company was willing to take to regain stability and move towards profitability. The shareholders’ decision at the upcoming meeting would be crucial in determining the station’s future direction and financial health.

 

 

 

 

 

 

 

 

 

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The Revengeful Franchise Bid

DevonAir Radio lost its broadcast franchise in 1994 following a bitter campaign by various groups to oust the incumbent.

In 1994 the then Chairman, Kenneth Holmes, proudly stated:

“The year to 30th September 1994, in financial terms, has been the most successful in the company’s history” and then later in the document he reported (in the final paragraph of the last ever Chairman’s report):

“The listening public of Devon has been deprived of what, in recent times, it has shown to be its preferred station. This is a matter of much regret. We, as the company, are proud of the achievements of DevonAir and all the staff, past and present, who have been responsible for this.”

David Cousins ​​was one of DevonAir ’s Programme Controllers and Managing Directors: “I was sad to leave ( DevonAir ), disliked the management at Capital Radio who had bought the company.

I got my own back by winning back the license 18 months later!” (full article here )

David Cousins’ story at DevonAir is one of significant contributions, strategic leadership and occasional controversy. From writing the original franchise application to guiding the station through financial challenges, his influence was substantial. His later involvement with Gemini Radio adds a complex chapter to his career, showcasing his industry knowledge and adaptability. Ultimately, Cousins played a pivotal role in the history of DevonAir, shaping its direction and leaving a lasting impact on the station’s legacy.