By Polly Fergusson Aim-listed entertainment group Metrodome has secured all the UK rights to W9, ...
By Polly Fergusson
Aim-listed entertainment group Metrodome has secured all the UK rights to W9, the sequel film to Human Traffic which contributed £11m to revenues in 2000.
Although chief executive John Hall would not be drawn on how valuable the deal was to the group, he said W9 should "significantly boost revenues".
Metrodome will need another £500,000 to finance other deals in the pipeline this year and this is likely to be raised through a private placement or issuing convertible bonds.
"We have spent £0.5m this year on developing internet business and now we need more cash to finance new deals, such as developing the internet film distribution business," Hall told Investor's Week.
Metrodome also expects to return a profit in 2000-01. Hall said the company would comfortably beat analysts' forecasts and sales would be more than £20m. It made profits of £88,000 in 1999-2000.
Metrodome distributes films, television programmes, videos and DVDs, and markets and produces CDs and records. Shares in the company have plummeted 80% over the past 12 months to 31.5 from 151p, after the company posted an interim loss and disappointing results from its direct marketing arm.
There is no doubt the shares have fallen with good reason, but we think the company has now reached turnaround stage.
New revenue streams from internet sites that sell merchandise will develop into earnings, and in the meantime the core film distribution side is gaining more credibility.
As with all film-related companies, this is a very high risk stock, but you can take some comfort in the fact that it makes money in other businesses too. Ratings are much lower than those for rival company Winchester Entertainment.