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Entertainment Rights reports strong growth

09.04.08 Philip Jones

Takeover target Entertainment Rights saw sales increase 129% to £68.1m in 2007, thanks to its acquisition of Classic Media in January last year. Operating profit at the children's licensing company improved by 61% to £17.1m, with pretax profit up just 1% to £7.9m.

In the UK, the group said significant progress had been made throughout the year: "Shelf space continues to remain at a premium for pre-school products and the trend continued throughout 2007. Whilst this proved challenging, ER continued to successfully exploit its key relationships with UK retailers with product available in Asda, Mothercare, Tesco, Toys R Us and Woolworths, ensuring the company's brands have a strong presence on the UK high street."

Rod Bransgrove, chairman said: "Whilst the last 6 months of 2007 were challenging and the overall performance of the group was below original market expectations, this should not detract from the considerable achievements made during the year. The acquisition of US-based Classic Media has greatly enhanced the Company's presence in the world's largest media market and the integration of Classic Media has delivered the expected synergies. Whilst there have been concerns regarding US consumer confidence, the board has been particularly pleased with the significant increase in DVD sales of the Christmas Classics titles in the USA during the important fourth quarter trading period."

The group added that the appointment of Nick Phillips as chief executive  in March represented the next stage of the group's global development.

The group has been the subject of takeover speculation since last year: it added that it was still in preliminary talks with interested parties looking to take it over, but that these discussions may or may not lead to an offer being made.

Financial Philip Jones children's Entertainment Rights

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