Analogue operations under GCap scrutiny: GCap boss focuses initial attention on audience figures.(Radio)

GCap's new chief executive Ralph Bernard is putting his immediate focus on improving the group's analogue business, despite pinning its future on digital radio.

Bernard moved from executive chairman to take over from David Mansfield last Monday, after the former Capital boss's surprise departure was announced to the City. Bernard says he will now will look to turn around what are internally viewed as some below-par audience figures within the group, which has also been hit by a series of disappointing advertising figures since it began trading in May.

"There are some audience issues to deal with," says Bernard. "Our audiences are under pressure and we need to continue a process to try to ensure we grow them." Bernard is unwilling to spell out which stations in particular are causing the group concern, though.

After his initial focus on the analogue business, Bernard aims to grow the business through digital radio, as GCap seeks to cash in on what is likely to be 40% penetration of digital sets in the UK by 2009. The group is already investing more in the sector than any other company, while it also has more stations than anyone else.

"These are very significant times for the development of radio and we need to ensure the business is prepared for both the current challenges and those going forward and the current challenge is lots of competition, particularly from the BBC, and also the commercial sector," he says.

"We've got a lot of commercial pressures because the advertising market is less buoyant than we would like it to be. And we've got to ensure the shareholders of the business, who after all have funded it for a number of years, understand the strategy and ...