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Forever Broadcast (FOB)

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Wednesday 14 August, 2002

Forever Broadcast

Trading Statement

Forever Broadcasting PLC
14 August 2002



Forever Broadcasting plc ( the 'Company'  or the 'Group')


Trading Update


As highlighted in the interim statement published on 14th May 2002, trading
conditions in the first half of the year were difficult resulting in sales
performance below Directors' expectations.  Whilst in the second half sales
momentum is returning, it has been at a slower rate than that required for the
Group to record results for the full year in line with current market
expectations.  At this stage, the Board believes that the shortfall in turnover
is likely to be about £400,000, with an impact on the operating loss of a
similar magnitude.

The recent RAJAR results for Quarter 2, 2002, published on 1st August 2002
confirm the growing popularity of programming at our five stations.  Compared
with Quarter 1 2002, the Group achieved increases of 10% in the number of
listeners and 25% in total hours listened against industry-wide figures which
showed a slight reduction in listening.


Write Down of New Media Investments

The Board has decided it would be prudent to write down the carrying value of
investments in Somethin' Else Sound Directions Ltd and its subsidiary XY Network
Ltd reflecting the difficulties associated with 3G content and digital media
operations.  This write down will result in a non-cash exceptional charge to the
profit and loss account of approximately £2.0m which will reduce the carrying
value of these investments to £750,000 at the year end.


Cash Position

Our current bank facilities of £3.5m are renewable annually on 30th September.
Our bankers have confirmed that they remain supportive and have agreed to an
extension of these facilities for a further twelve months.  In addition, the
executive directors and certain founder shareholders have committed to provide
new equity and loans totalling £900,000 which when aggregated with bank
facilities will in the Board's opinion provide the Group with sufficient cash
resources for the foreseeable future.


Outlook

The Board is taking action to improve operational efficiency through a reduction
in the Company's cost base.  Additionally, the Company is encouraged by advance
airtime sales for the next financial year, which are substantially higher than
at the corresponding time last year.

ENDS

                      This information is provided by RNS
            The company news service from the London Stock Exchange
                                                                                                      

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