NEW ITV boss Michael Grade highlighted a "lack of innovation" in programming after the broadcaster announced a sharp fall in annual profits.

Two months into his role as executive chairman, Mr Grade said he had developed more positive impressions than negative ones about ITV, adding that most of the problems were within the control of the company to remedy.

In annual results, ITV said net advertising revenues fell eight per cent during the year to £1.49 billion, with the figure for flagship channel ITV1 £181 million lower at £1.28 billion. Underlying earnings for the year were down to £375 million from £460 million, with bottom-line pre-tax profits down by £23 million at £288 million.