Former Channel 5 chief David Elstein is replacing Richard Thompson as chairman of Civilian Content, the publicly listed company that owns UK lottery franchise the Film Consortium.

Thompson is exiting the company after it issued a profit warning and signalled plans to cut overheads, citing a delay in receiving payments from film such as The 51st State. The company had hoped to include fees for productions such as Dirty Pretty Things in the final quarter but was unable to board the project before Miramax Films pounced and hoovered up worldwide rights.

The company has had several high-profile disappointments including Dust, which was panned by critics when it opened Venice, and Gabriel And Me, which flopped at the UK box-office.

Earlier this year, the operation shifted its focus from film production to financing and distribution, partly a cost cutting bid. Richard Holmes was ousted as managing director, being replaced by Chris Auty.

Despite having access to lottery funds worth around £30m over six years, the company will make a loss this year.