Cornwall's 105 to 107 Itchy FM - Ofcom Licensing

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o Christopher Weston – A serial high net worth investor in the SME sector, Christopher holds 28 investments, across a range of industries including publishing (Infoconomy Magazine) and radio (Global Radio News) and previously ran a successful business auction business in and from Par, Cornwall. o Far Blue CI (Guernsey) Limited – The investment vehicle of Towergate PLC Its directors are: Ian Merricks – Group Managing Director Co-Founder of the IMD Group and experienced in creating and building shareholder value in youth media and marketing businesses through organic launches and turnarounds of underperforming acquisitions. Ian worked entrepreneurially within the music industry between 1995 and 1998 as an events promoter / band manager, and from 1998 in a variety of commercial development consultancy roles, at ILR and latterly talkSPORT and Impact (The Wireless Group’s sovereign sales house). Martin Dallaghan – Group Operations Director The last decade has been spent in the youth media and marketing sector. Martin has launched several small, successful businesses, acted as chair of the Student Radio Association and been involved in the preparation of a number of licence applications and countless RSL trials and student broadcasts. Martin runs the day to day operations of IMD Group. Piers Linney – Non Executive Director Piers Linney is a qualified solicitor with particular experience in corporate finance and private equity and was a Senior Associate in Credit Suisse First Boston’s M&A Group before leaving to start an online marketing and research business for the pharmaceutical industry. Until December 2000, Piers was a board director and the COO of TrusttheDJ, a music, radio, youth marketing and talent management company founded by Matthew Bannister (ex-Radio 1 controller and #2 at the BBC) and funded by Virgin, Bear Stearns and Bridges Community Ventures. Piers now acts as CEO of media investment boutique Towergate PLC and acts on a part-time basis as IMD’s Corporate Development Director, overseeing strategic growth and finance issues. Business activities IMD Group’s whole focus is on working with our clients to credibly reach the youth market. IMD owns various youth media publications, and each of our brands are market leaders in their respective fields ('Itchy' - the UK's best selling city guides; 'The Student Planner', paid for distribution to 53% of all college students). We have a youth broadcast / radio unit (supported by EMAP), and we have an excellent below-the-line unit which manages client events, PR, sampling, data capture and research. Performance The combined assets owned by IMD Group will have turned over around £1m by December 31 st year end. A DTI high growth business, IMD projects organic turnover of £2.6m next year, and a net profit of c£0.5m. This ignores any contribution from IMD Radio Cornwall Ltd, and excludes any of the planned acquisitions we have planned post IPO, which we anticipate will at least double turnover. (c) Involvement of the Applicant in Specified Activities Neither the applicant nor its participants (including shareholders) are involved in any of the Specified Activities. 7
Financial and Business Plan (d) Overall financial strategy Provide a concise summary of how the applicant considers it is able to establish and maintain, throughout the licence period, its proposed service, and how this licence fits in with the investors' strategy. IMD Radio Cornwall Ltd is confident that it can establish and maintain a successful and distinctive music radio service in Cornwall. We have extremely experienced individuals to launch and programme the station and, most importantly, we know that the audience offers considerable scope for commercial success. Our target audience is not only the significant number of Under 35s who currently favour BBC Radio 1 over Pirate FM, but also the 1.4m 1 seasonal leisure visitors aged between 15-34. We are confident in the success of our chosen format because of our extensive trail of research, consultation and testing over the past five years. It has clearly demonstrated that a radio station which effectively targets young adults will not only extend listening choice, but will win receptive audiences and enjoy commercial success. Collectively our investors and directors have relevant track records in the Cornish business community, youth media, local and national radio, and long-term commitment to their investments. We have committed relevant resource to the station and have a compelling crossmedia strategy for developing and marketing the brand. Itchy FM’s strategy is based on the following criteria and underlying market research: Developing a credible, relevant and distinctive radio station which is clearly focused on targeting the audience most underserved by local commercial radio - Under 35s in Cornwall; Pirate FM’s primary audience (71%) is aged 35 or over, 2 making an older targeted service difficult to sustain, especially with the added competitive presence of a strong BBC Radio Cornwall; A detailed business model based on extensive research, testing and analysis which includes a market gap study, an NOP tastes and interests survey, a monitoring study, full RAJAR analysis, a local revenue study and ongoing local consultation, over a three year period; Delivering a powerful and effective youth brand which benefits from marketing partnerships, well defined brand values and the ability to integrate with existing youth media and lifestyle strands in Cornwall; A strong understanding of the marketplace and target audience, supported by investors, board and management which combine to provide outstanding experience and understanding across youth media, marketing and commercial radio; Strong audience demand based on NOP research 3 which shows that 64% of adults under 39 were likely or very likely to listen to a radio station with our proposed format – the strongest interest coming from BBC Radio 1’s audience; Realistic audience projections, and revenue assumptions and extensive collaboration with potential advertisers, sponsors and brand partners; The ability to complement traditional advertising revenue with untapped revenue from sponsorship revenue, promotions, events and brand associations; Considered movement into youth ILR from one of the UK’s fastest growing youth media and marketing specialists, with extensive radio expertise from the management and shareholders. 1 Source: Cornwall County Council, The Cornwall Tourist Board & The Cornwall Association of Tourist Attractions 2 Source: RAJAR quarter ending: 09/04 3 Source: NOP Survey, Edison Media Research, November 2004 8
Page 2 and 3: GENERAL INFORMATION Application for
Page 4 and 5: Rolf Munding Non-Executive Chairman
Page 6 and 7: Martin Dallaghan Current directorsh
Page 10 and 11: Market Opportunity BBC Radio 1 cons
Page 12 and 13: usiness being awarded a Shell Livew
Page 14 and 15: The seasonal uplift in listener vol
Page 16 and 17: This arsenal of advertiser-aligned
Page 18 and 19: only through this genuine investmen
Page 20 and 21: Station’s link with Investor stra
Page 22 and 23: (e) FUNDING The business will be ca
Page 24 and 25: sustain small scale youth media and
Page 26 and 27: Telegraph, Nuts Magazine (IPC) and
Page 28 and 29: Audience Projections Itchy FM predi
Page 30 and 31: Total Hours 546,000 100% Based on t
Page 32 and 33: might incur to achieve such high le
Page 34 and 35: o Newquay: surf / skate, clubbing,
Page 36 and 37: We would also support all station a
Page 38 and 39: A large part of Itchy FM’s likely
Page 40 and 41: Staff structure IMD Radio Cornwall
Page 42 and 43: In addition, IMD Group’s local sa
Page 44 and 45: Director of Radio, Zenith Optimedia
Page 46 and 47: SECTION 105(B) AND (C): CATERING FO
Page 48 and 49: 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 F
Page 50 and 51: spoken word content will provide ed
Page 52 and 53: (b) Proposed format Licence Outline
Page 54 and 55: NOP Study - November 2004 Edison Me
Page 56 and 57: Interest in New Radio Station: When
Page 58 and 59:
Radio listeners in Cornwall are wel
Page 60 and 61:
Research Conclusions This format cl
Page 62 and 63:
collated a number of the most perti
Page 64 and 65:
Local meetings Summary of some of t
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