Rother FM - Ofcom Licensing

2. Financial and business plan
(a) Overall Financial Strategy
Section 105 (A): Ability to maintain proposed service
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.
Rother FM is part of the Lincs FM Group, which has the proven ability to operate successful,
locally-focused radio stations within the competitive Yorkshire marketplace. The Lincs FM
Group has built its business on its commitment to distinctive and high-quality local radio, and
on its strategy of expanding organically by applying for new radio licences in areas that make
commercial sense to the Group as a whole. Formed in 1991, Lincs FM won both the first
(Lincoln) and the last (Barnsley) competitively awarded Radio Authority licences. Lincs FM
102.2 launched in March 1992 as the new commercial radio station for Lincolnshire, and has
long sustained some of the country’s best RAJAR figures as well as twice being nominated as
Sony Station of the Year. Since then the Group has won seven more local radio licences and
launched seven successful services in Yorkshire and the Midlands. All have won or been
nominated for major industry awards.
The Rotherham licence is a perfect fit with our strategy. The borough borders Bassetlaw in
North Nottinghamshire, and Barnsley and Doncaster, both in South Yorkshire: three areas in
which the Lincs FM Group has already established successful commercial local radio
stations.
Rotherham is the kind of marketplace we understand, not just from a sales point of view but
also in terms of programming and marketing. The borough has, in common with both
Barnsley and Doncaster, gone through some very tough times since the 1980s. While
Barnsley and Doncaster have suffered from the collapse of the mining industry, Rotherham
was even harder hit – as the steel industry went into decline as well. Nearly 50,000
Rotherham jobs were lost in a 25 year period from around 1970 – 22,000 in steel and 26,000
in coal. Like Doncaster and Barnsley, Rotherham is now benefiting from the Objective One
funding status given to South Yorkshire at the beginning of this century, with £1.8 billion being
spent across the region on development projects.
However, while Rotherham does have much in common with both Doncaster and Barnsley –
particularly Barnsley, because of its size – we are also very aware of Rotherham’s distinct
character and challenges. It has closer ties to Sheffield than either Barnsley or Doncaster, a
result of both geography and the heritage of the steel industry. 40% of Rotherham’s
population travels outside the borough to work, 22% into Sheffield. The closeness of this
giant neighbour means Rotherham has to fight harder to benefit from the new European
funding. The council has highlighted in particular the fear of “retail leakage” – local people
travelling outside the borough to shop. As a result, Rotherham now has an ambitious new
retail development at Parkgate and £3 million has been spent on redeveloping the Centenary
Market in the town centre.
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