News story about UK commercial radio group GCap Media plc: board member Dame Patricia Hodgson quits, a City analyst comments that the company is a "botched merger"; the share price falls to a new all-time low, written by Grant Goddard in August 2006 for The Radio Magazine.

1. NEWS: HODGSON QUITS GCAP
MEDIA PLC BOARD, CITY LOSES
CONFIDENCE IN "BOTCHED
MERGER", SHARE PRICE FALLS
TO NEW ALL-TIME LOW
by
GRANT GODDARD
www.grantgoddard.co.uk
August 2006

2. News: Hodgson Quits GCap Media plc Board, City Loses Confidence In "Botched Merger", Share Price Falls To New
All-Time Low page 2
©2006 Grant Goddard
Dame Patricia Hodgson has resigned from the board of radio group GCap
Media plc in order to take up the job of principal of Newnham College,
Cambridge.
The former chief executive of the Independent Television Commission
explained: “'Looking at my anticipated commitments at Cambridge and
elsewhere, I have concluded, with great reluctance, that I should withdraw
from GCap Media. This is an exciting time for the company, as technological
changes present new opportunities for growth. I believe that GCap has the
right team in place with a solid strategy and, while I am no longer able to
participate in its future, I wish my colleagues at GCap every success.”
Hodgson had joined the board in May 2005, having previously served as a
director of GWR Group since January 2004.
GCap’s performance has continued to perplex the City, as the company’s
share price hit another all-time low of 180.25p last Thursday. David Forster of
IBIS Capital described GCap’s creation last year as a “botched merger
between two of the largest commercial radio players” and noted that the
company ranked 38th out of 40 FTSE-listed media companies in July, due to
its 18% loss in value.
ZenithOptimedia radio manager Steve Coteman said: “Most agencies and
media owners would agree that a weak 'Capital Radio' is bad for the radio
sector as a whole. My concern is that it could take two years for the brand to
recover – if it ever does.”
MindShare head of radio Howard Bareham added: “'Capital' has tried to win
listeners by cutting the number of ads it airs in breaks. But it hasn't got the
programme proposition right. Until it does, there is no point in marketing the
brand, so it could be a while before it turns this situation around.”
Colin Grimshaw, deputy editor of 'Media Week', commented that “Capital’s
problem is that it lacks an identity and a reason to listen” and suggested that
“bold thinking is clearly required” because the station’s stance of “trying to be
all things to all people” had become “untenable”.
[First published in 'The Radio Magazine' as 'Hodgson Quits GCap Board', #749, 16 August 2006]
Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of
experience in the broadcasting industry, having held senior management and consultancy
roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at
http://www.grantgoddard.co.uk