ContentFilm into the red

23/12/2008 Robert Tyerman

Media rights specialist ContentFilm sees a stronger second half-year after losing £2.4 million in the six months to September.

The AIM-quoted company, which owns television distribution concern Fireworks International as well as film and digital sales operations, saw turnover fall by £2.1 million to £8 million in the first half-year, partly reflecting a £2 million drop in revenue to £905,000 from discontinued operations.

Chairman and veteran financier Alton Irby says reorganising costs at London-based ContentFilm’s US home entertainment operations, involving £1.8 million asset write-downs and £400,000 cash costs, and delivery of new TV series set to fall in the second half-year contributed to the poor first-half performance – which was not helped either by £200,000 foreign exchange losses.

Irby speaks of ‘good visibility on a stronger second half’, but warns that an expected strong performance from the Fireworks library must be offset against ‘possible underperformance’ by the company’s new television series and film divisions and lower revenues from its home entertainment joint venture. On balance, he suggests that ContentFilm’s ‘top line’ revenues will fall short of market expectations, but argues that improved margins, notably at the Firework library, will secure profits ‘broadly in line’ with market forecasts.

ContentFilm’s shares have been dismal performers since floating at 26p in 1995. They now trade at 3.5p, down 0.5p this morning, valuing the company at £6.1 million.

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