UK-US producer, distributorand sales company ContentFilm has posted a pre-tax group loss of £15.2m for theyear ending March 31.
The loss includes an £8mwrite down against the film library Content acquired when it took overpublicly-listed UK media group Winchester Entertainment. It marks a £4m rise onthe loss recorded for the year before.
Alton Irby, non-executivechairman of Content, pointed out that the results largely represent theactivities of Winchester before the takeover.
"These results representa line drawn under the history of Winchester," Irby said. "Following theacquisition of Content, as our shareholders would expect, we have taken theopportunity to review the group's strategy and refocus the underlying business.This has resulted in a significant write down in the carrying value of theWinchester film and TV library."
Thecompany said operating activities werecut from £5.2m the year before to £2.9m, while the enlarged group's financeshave been strengthened by raising £8.3m in a share placing. Content is alsoreportedly raising £10m in UK tax-based funding through financier EntertainmentInvestor.
Cutting back on costs sawContent merge its three London offices into one site and close Winchester's LosAngeles operation. The company now employs 39 staff compared to the 52 whoworked for Winchester and Content prior to the acquisition.
The group will focus in thefuture on producing, co-producing, financing and distributing films withbudgets between US$15m and US$40m, plus a few lower budget films. Filmproduction is run by Ed Pressman, with staff based in Los Angeles, New York andLondon. In the pipeline are David Gordon Green's Undertow, Crowfranchise title Wicked Prayer and epic art house feature TheBeautiful Country, starring Nick Nolte and Tim Roth.
Irby added that the groupaims to further reduce costs, along with focusing on larger budget films tofeed the distribution businesses.
"The successful refinancingof the group will enable us to pursue a number of significant film projects andto take advantage of any cash positive acquisitions of libraries anddistribution businesses," he said. "These are expected to enhance the group'sunderlying business and strengthen our financial position over the next twelvemonths."