Works Media says it had a poor 2008 but the international film sales operations should do better this year.
Shares in Works Media recovered 0.375p to 1p each, which values the film distribution and sales business at £1.48m.
The weakness of sterling has increased the costs of buying films by 25%. It has also become difficult to secure rights for higher quality films and Works Media has had to reduce the number of films it acquires for its distribution business. The international sales operation should be able to continue to grow.
Revenues dipped from £3.31m to £2.61m in 2008. The loss increased from £139,000 to £625,000. There was a provision of £100,000 against the value of the film catalogue and £88,000 compensation to a former chairman but underlying overheads fell by £300,000.
Net cash is £49,000. That is after £500,000 drawn down out of a loan facility with Milcoz Films of up to £750,000. The interest rate is the Bank of England Base Rates plus 3%.
Mongol: The Rise To Power of Genghis Khan was the best performing film in 2008 and will make a big contribution in 2009 as well.
The international sales business is benefiting from new management. They have changed the focus from UK films, where tax changes have hit production, to international films.
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