Film sales and distribution counter Metrodome, which owns the UK cinema, DVD, video on demand and broadcast rights to Oscar nominees Days Of Glory and Water, is eyeing a return to profits this year under chief executive Peter Urie.

The audio-visual entertainment counter posted rather uninspired figures for calendar 2006, with waning turnover of £3.75m (£4m) reflecting fewer cinema titles released due to since-remedied cash constraints, though the bottom line deficit was encouragingly trimmed from £1m to £774,000.

These figures masked changes under new management that have seen the company emerge as a far more interesting investment. The business has restructured, boosted liquidity by reducing the shareholding of majority shareholder TV-Loonland from 83% to 61.3%, brought in new backers through a placing, and put in place a growth-focused business plan. ‘We have stabilised this business and it can now happily survive without any further investment,’ insisted Urie, who sees investment in new, high-quality cinema releases for 2007 and the continued expansion and roll-out of titles on its home entertainment labels as driving a return to profits this year. Metrodome is also well positioned for growth in the market for video on demand (VoD), which should ‘emerge fully’ this year.

Not that 2006 was without many successes. Television sales proved a handsome revenue stream, with sales of Donnie Darko and Help! I’m a Fish to satellite channels and Tell Them Who You Are to terrestrial channels proving notable highlights. Rental revenues were strong, with Shooting Dogs and Flight 93 (one of the most successful straight-to-DVD titles the company has ever released) standing out in a very tough DVD market in which prices are under severe pressure.

Looking ahead, management is targeting a ‘six-figure profit’ for 2007 and prospective dividends are also on the horizon, with the company having eliminated the deficit on its profit and loss account. The shares have speculative appeal in an evolving marketplace.

Metrodome Group	AIM	£1.51m	1.25p	0.00p
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