The Company continues to benefit from the radio industry's transition to digital. In line with comments contained in the Chairman's AGM Statement issued in July, group revenues have continued to grow significantly in the first half across the Company's Commercial, Programming and Software divisions.

Despite a difficult environment elsewhere in the radio industry, UBC hascontinued to see strong growth in advertising revenues, with a like-for-like increase in the first half of 20% compared with the same period last year. The second half of the year has started well and revenues in October are particularly strong.

Sponsorship revenues have been slightly depressed by the industry downturn and this will lead to marginally lower revenues at the Company's Classic Gold Digital network.

As expected, the acquisition last year of the Smooth Operations regional production business has led to an increase in commissioned programme revenues from the BBC who have announced an intention to commission more programmes from suppliers outside London. UBC believes it is now well placed to benefit from this development and expects continued growth in the balance of this year.

Revenues at the company's software division, Unique Interactive have benefited from the arrival this year of more sophisticated digital radios with enhanced displays and an interactive capability. This has led to increased sales both in the UK and overseas of the company's products, especially its Electronic Programme Guide software.

The Company has previously announced its intention to invest approximately £400,000 in the first half of the current financial year on creating a service that will allow music to be downloaded to portable devices using digital radio channels. The planned technical trials have taken place and have been successful. Although the level of investment has been less than originally expected in this period, the company still believes that it will need to make the full investment originally anticipated across the full year.

The Board is satisfied with the performance of the Company, which is in line with expectations, and we believe the prospects for the remainder of the year are positive.