ContentFilm says that it will fall short of expectations for the year to March 2009 and there may be some write-downs of the company‘s film library.
The film and TV sales and rights owning business believes revenues will be up to 12% lower than expected. The shortfall in profits is not indicated but it seems safe to assume that it could be a higher percentage than for revenues.
The TV distribution business is experiencing slower trading but has held up well. The film sales and distribution business has disappointed. There were delays in some film releases. This could help the year just about to commence.
Strong sales in Wal-Mart have helped the US home entertainment joint venture to live up to profit expectations.
Net debt has increased slightly to around $34m but weak sterling means that there has been a bigger increase in pound terms to £23.5m.
Management still has to deal with the problem of the convertible redeemable preference shares. These can be redeemed up to ninety days after the 29 March 2009. ContentFilm hopes to have come up with a deal with the majority holders of the preference shares that will be fair to the preference and ordinary shareholders.
Shares in ContentFilm slipped 1p to 2.25p each, which values the company at £3.93m.
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