Winchester warns again on profits
FILM company Winchester Entertainment has issued its second profit warning since chief executive Gary Smith controversially sold £592,000 worth of shares.
Smith faced a Stock Exchange inquiry in February over his sale of stock less than two weeks before alerting the market to a major profits shortfall.
He came under closer scrutiny today as he warned the group was set for losses of £6m for the year. House broker Investec had pencilled in losses of £1.6m after the February statement.
Smith sold 400,000 shares at 148p prior to the first profit warning. The price today was down 4p to 21p, at which that share sale would have raised only £84,000. The founder of the business has claimed he was unaware of the trading position when he sold the part of his stake, claiming he made the disposal to raise cash to renovate a house.
The latest statement warned that the group would accelerate the amortisation of its struggling television division, which has produced TV series including the hit Jellabies. The TV group has suffered from an increase in competition and the downturn in advertising.
