Bac Majestic, the French distribution and exhibition group headed by Jean Labadie, reported profits below the target announced at the time of last year's flotation.

Pre-tax profits were $1m (Euros1.1m), and net after tax profits were $180,000 (Euros0.2m). But the company blamed the difference on a policy of accelerated film depreciation. Sales of $71.3m (Euros79m) and operating profits, however were in line with expectations and for the current year Bac is forecasting turnover to exceed $90.2 (Euros100m).

At the end of 2000 it opened two new multiplexes, a 10-screener at Douai and an 8-screener in Nimes. It says it is pressing ahead with plans to develop other in Northern France at Beauvais, Compiegne, Arras, Bethune, Châlons-en-Champagne and Brest and three in the South of the country at Ales, Martigues and Salon-de-Provence.

After a month on the slide, the shares yesterday fell a further 11% to Euros4.85, at which the company is valued at $42.6m (Euros 47.2m).