Immedia Broadcasting

The shares of in-store radio station operator Immedia Broadcasting have fallen 12.6% to 48.5p, continuing a depressing trend. Since the beginning of October, the company, steered by ex-Radio One DJ Bruno Brookes, has witnessed its shares fall a total of 36%. At the interim stage to June, group revenue improved 10% to £1.1m but pre-tax losses increased from £236,660 to £250,563. The operating loss also widened 27.8% to £274,170. Worringly, the company only had £1.5m net funds left, despite raising £4m on admission to AIM last December. Over £550,000 was spent during the period on studio facilities, IT and maintaining its existing retail network contracts. Immedia has so far bagged Lloyds Pharmacy and Norway-based Vitus Apotek as clients as well as 5,000 independent convenience stores and newsagents (which it serves through its Impulse Live network). A delay in expansion in Impulse apparently affected first-half revenues. Two high street brands, Iceland and Dixons, have been trialling the format and the latter is rolling out the format to 200 stores. With cash diminishing fast, these two and others will have to convert into real customers soon if this group is to make any progress. We're its least fanatical fans. Avoid.

Sector: Media

Companies: Immedia

Market cap: £8.9m

PE Forecast: n/a

Share price: 48.5p

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