Top jobs have been axed at a struggling commercial radio station which is bidding to merge with another.

The shock exits of Worthingbased Splash FM managing director David Atkey and programme controller Simon Osborne were blamed on tough trading conditions.

Splash shareholders are being urged to back a merger with profit-making Bright FM in Burgess Hill.

Former Radio One presenter David Hamilton, who is Splash's major shareholder, said: "Unfortunately we have been paying out more than we have had coming in. Cuts have had to be made."

Splash held an extraordinary general meeting at the Ardington Hotel, Steyne Gardens, Worthing, on Friday, when company chairman Jim Brathwaite offered to resign.

Shareholders did not deem this necessary, paving the way for him to become chairman of Splash and Bright if the companies joined forces.

Mr Brathwaite said there was no danger of Splash closing if the merger fell through.

He said: "What would happen, if the worst came to the worst, which it won't, is the company would be sold on."

Mr Brathwaite added: "We have to make sure we run the company as cheaply as possible while still maintaining the quality."

Mr Hamilton said: "The last couple of years have been pretty tough for commercial radio generally. There are not many stations in the country which are actually making money.

"Splash has been an excellent radio station, and industry regulators Ofcom cited us as a good example of a well-run station.

But we have yet to make any money.

"We are five years old in May and we want to run a successful business."

Mr Atkey, a founder director of Splash who has been living in Spain for the past year, had retired, and Mr Osborne was made redundant.

Mr Hamilton, who owns 25 per cent of Splash's shares, said: "We have already cut a lot of money off our budget with the departures of David and Simon, and hopefully the advertising situation will take an upturn.

"With the money we have saved, hopefully our books will balance a bit better.

"Jim Brathwaite did say at the EGM that if anybody felt unhappy with the way things were going he would be prepared to resign but nobody made any signs in that direction.

If we are guilty of anything we are guilty of having run almost too good a radio station.

"We have had a terrific station but it hasn't made money for the shareholders.

"I am one of them, and the shareholders are getting a little bit edgy about that.

"We hope in the next year we might pay a shareholders' dividend for the first time."

If the merger went ahead, possibly in June, Allan Moulds, managing director of Bright, would also take charge at Splash.

Programmes would be broadcast from the Guildbourne Centre, Worthing, with Bright retaining a small advertising team in Burgess Hill.