Turnover for the continuing GMG wholly owned businesses fell by £30.9 million to £280 million as a result of the difficult market conditions caused by the recession. This was substantially due to a fall in advertising and new media revenues.
EBITA before exceptionals (including share of Trader Media Group and Emap) of £37.7 million was higher than in the previous year, reflecting substantial cost reductions within the wholly owned businesses.
The pre-tax loss is heavily influenced by two factors: the presence of large, one-off, non-cash adjustments, which have the effect of significantly inflating the 2009/10 pretax loss; and the fact that we have exchanged short-term profitability for longer-term financial security through our investment in two large-scale joint ventures from which we do not take an immediate return (Emap and Trader Media Group).
Assets, cash and investment fund
Combined cash balance and investment fund declined by less than 3%. Given the extreme economic environment, this was a positive result.
Net assets fell due primarily to non-cash impairments in Emap and GMG Radio reflecting trading in the current challenging economic climate.