AS forecast Radio Group GWR has posted a year-on-year reduction in revenues for the quarter from July to September.

Forecast revenues for the group, based in Wootton Bassett, for the three months to September 30 are down six per cent year-on-year and like-for-like airtime sales in the UK are forecast to be seven per cent down.

This includes a six per cent reduction year-on-year at Classic FM the group's flagship station.

National and local revenues are forecast to be down seven and eight per cent respectively.

However, the group expects that in this quarter Classic FM should lead the way to modest growth.

During the past six months GWR has completed a significant change to its management structure resulting in several positions being made redundant.

This, the group says, will achieve better utilisation of airtime and focus attention on areas with the biggest potential for revenue growth.

A statement read: "We are confident that, as new management settle into their roles, our revenue performance will improve.

"We continue to experience volatility in the market, with little visibility of future revenues.

"However, our current expectation for the fourth quarter of 2002 is for modest growth overall with Classic FM showing some strength compared to the market."

Over the six months ending September 30, the group's debt has reduced from £164 million to below £100 million following the disposal of London News and investments in Australia.

The group's strategy now is to focus on its UK assets.