Equator Group, the UK media concern which earlier this year ended take-over talks with Handmade Films, has posted a pre-tax loss for last year of $2m (£1.2m).

The red ink was in contrast to a profit of $789,000 (£475,000) the year before. Equator's sales also dropped steeply, falling to $613,000 (£369,000) from $2.3m (£1.36m).

Equator managing director Ian Robertson said he will assume the duties of chairman pending the appointment of a new non-executive chairman. The former chairman, Earl Cathcart, resigned in March.

The slump came in tough trading conditions. Fellow UK media company Winchester Entertainment, also listed on the Alternative Investment Market, last week posted a pre-tax loss of $18.6m (£11.2m) for the same period.

Equator added that it has added two new titles to its film library catalogue: Charlie, starring Luke Goss; and The Pursuit Of Happiness, a romantic comedy.