The GWR group has given an update of its trading, saying that in the quarter to March 31, UK like for like revenues were expected to be flat.

They would include a 4.8 per cent reduction year on year in national revenues and a 2.7 per cent increase in local revenues.

Total Group revenues for the quarter were forecast to increase by 1.4per cent year on year.

UK like for like revenues in the six months to March 31 were forecast to be down 6 per cent and for the full year down 5.5 per cent.

A statement from the group said: "In recent weeks, we have experienced some improvement in the radio advertising market.

"Indeed, in March, Classic FM has enjoyed one of its best ever months.

"However, it is too early for us to be confident that these conditions reflect a sustained recovery.

"Accordingly, we remain cautious over the outlook for radio revenues.

"With the introduction of new software systems, we are now progressing well with a re-organisation of our UK operations.

"Through this process, we continue to reduce the cost base of the business.

"Additionally, we are generating cash through the disposal of non core assets."