SCOTTISH Enterprise has emerged as an investor in Team Rock, the Glasgow-based media group focused on heavy metal and rock, as the business continues to shift its focus to digital audiences.
Latest accounts from the radio and magazine business, launched by two former executives at GMG Radio in Glasgow, show Scottish Enterprise joined as a new equity investor as part of a £4.5 million funding round led by existing shareholder the North Atlantic Smaller Companies investment trust.
Team Rock said money raised in the round, together with additional loans from the trust, had strengthened its balance sheet as it continues to invest in building the business with staff numbers rising to 91 in 2015 from 40 in 2014.
Pre-tax losses in the year to 31 March more than doubled to £8.8m from £4.3m the previous year on turnover of £6.54m, down from £7.56m.
In its report, the company said it had managed to minimise the “continual decline” in the traditional magazine publishing sector while new revenue streams are developed.
The year had been one of investment in the systems and infrastructure needed to “transform itself into a digital business and deliver on its long-term goals and business plan”. The firm said it had achieved “considerable success” in building its online presence and developing its audio services with 46 per cent growth in YouTube subscriptions, an almost doubling in Facebook activity and a 40 per cent growth in listeners to its TeamRock station.
As well as the TeamRock digital station the business is also behind magazines and websites including Classic Rock, Metal Hammer and Heavy Metal.
John Myers, who ran GMG Radio until 2008, and Billy Anderson, former regional managing director at GMG Radio, become chairman and chief executive respectively of Team Rock when it was founded in 2012. It bought the Classic Rock and Metal Hammer magazines for £10.2m from Future publishing in 2013 before launching the TeamRock radio station a month later.