It may be for sale but DA Group unveils major radio contract

The AIM-listed company said its Yomego division had been hired by GCap Media to develop platforms for listeners to upload user-generated content.

The deal is similar to one it signed with GMTV in December, which allows viewers to have their homemade content broadcast on the channel.

GCap is the UK's largest commercial radio broadcaster. With 16.4 million listeners and more than 100 stations, the company takes 37 per cent of the total radio revenue.

DA chief executive Mike Antliff said there was an opportunity for the company he co-founded in 1990 to work with a wide range of GCap's stations, which include Classic FM, Capital 95.8 and Xfm.

"We are very excited to be working with GCap Media which is focused on developing platforms which will allow them to better interact with their listeners and build stronger communities around each of their brands," he said.

The announcement appeared to be timed to drum up interest in the company, with the first project expected to be completed by the end of May, with others set to be rolled out over the next few months. Financial terms for the deal were not disclosed.

It comes just two days after the company, which created the world's first-ever digital newsreader, Ananova, announced it had appointed Baker Tilly to advise it through a strategic review which could see the company sold, while insisting a sale was not inevitable. The announcement saw shares fall by more than a third.

However, Antliff remained upbeat about the company's prospects.

He said the potential order book had never been stronger, and that the average deal signed in recent months was six figures, compared with 10,000-20,000 a year ago.

Yesterday, shares in DA opened 2p higher on news of the deal but settled to close up 0.5p, or 4 per cent, on 12.5p, valuing the company at just over 3 million.