When Richard Wheatly launched this company onto AIM in May 2004, he promised he would 'change the business model' of local radio and build a substantial, profitable business as quickly as possible in an area which had its fair share of non-growth businesses. As things stand, Wheatly is certainly on course to deliver on these ambitions. Following a series of acquisitions and licence wins, The Local Radio Company (TLRC) now owns 27 commercial stations, making it a major force in its chosen niche, and it has also reached the operational break-even point at the interim period (on turnover up 19% at £9.8m). Even more exciting for the merry band of investors backing Wheatly is its latest deal with Ulster Televison (the Northern Irish media group that recently bought Kelvin Mackenzie's Wireless Group back in June) . This agreement will see TLRC's subsidiary, FRS, take over the national and regional sales of the 17 radio stations operated by Ulster. In return Ulster will pay TLRG £0.5m and assume a 50% ownership of FRS. Wheatly hailed this agreements as 'very exciting, moving us into the big league of radio advertising. Indeed, we are now UK's number two buying point for local radio'. In an otherwise sluggish market, Wheatly also said TLRC would outperform the wider market for the full year and make a maiden full year profit before an array of exceptional gains and costs. Considering its growth prospects, the innovative deals it is concluding and the fact that it is no longer bleeding cash, this group is priced very conservatively. Buy.