UTV had net debt of £10.7 million at the end of 2001 from net funds of £14.1 million at the end of 2000, largely reflecting the County Media acquisition.

Pre-tax profits at the publicly quoted Ulster Television Group (UTV) fell to £11.9 million sterling (€19.23 million) for 2001 from £27 million, but the outcome was significantly better when an exceptional profit of £13.4 million in 2000 and goodwill amortisation are stripped out.

With these adjustments, the 2001 results show an increase in operating profits before goodwill to £13.6 million from £13.4 million, helped by the acquisition during the year of the Cork-based County Media radio operation. Shareholders are to get a final dividend of 5.4p sterling, bringing the dividend for the year to 9.2p, an increase of 5.7 per cent.

Managing director Mr John McCann said the company expected to outperform the media market in the current year, was moving to acquire the 40 per cent of Cork-based County Media it did not already own and was looking for new opportunities in the radio sector.

In the current quarter, UTV's advertising revenue was down 2 per cent compared with a 13 per cent decline at ITV, he said. UTV was benefiting from a buoyant local advertising market which "continues to significantly reduce the impact of national advertising cutbacks", he explained.

"In a difficult year for the media industry this was a most encouraging performance across the group's businesses with local advertising remaining buoyant," he said.

In 2001 the group raised turnover by 5.3 per cent to £43 million. Advertising revenue on the television network was down 6.1 per cent over the year but strict cost controls helped to produce operating savings. The television operations produced operating profits of £12.4 million, down from £14.2 million.

The group's County Media radio acquisition chipped in operating profits of £1.4 million from April 12th to year-end. Group losses on internet activities were down to £0.2 million from £0.8 million - there was a substantial improvement in the second half when an operating profit of £0.15 million was generated.

Mr McCann described the €21.6 million acquisition of 60 per cent of County Media as "an important step into the Irish radio market and the cornerstone for further expansion in Ireland". He said the internet business had achieved operating profitability ahead of target due to revenue growth and tight cost control and he expected profitability throughout 2002.