UK-based Winchester Entertainment has
effectively put itself up for sale, saying it is considering "strategic
UK distributor Helkon SK is seen as a possible
buyer after earlier this year buying a 3.67% stake in the AIM-listed
company, which this
week declared half-way losses on continuing operations of $10m (£6.3m).
shares fell 43% to 12.4cents (7 3/4p) following the announcement.
Leslie Hill, Winchester's non-executive chairman, said he was steeping
" Losses reported cannot continue and actions have and are being
taken to address this," said Hill. "We have sold loss making
Optical Image, curtailed development expenditure and cut overheads.
Conditions in our markets remain difficult requiring substantial
write downs of film and television programme stocks. We continue
to focus on our film businesses. The board is again considering strategic
Along with cuts in Los Angeles, Winchester is reducing
operating expenses through staff reductions and lower legal expenses
London office. Hill said that Winchester has stopped expenditure
on new development projects during the summer and is focusing on
moving film rights already owned into production. Winchester also
aims to board film projects outside of its own development slate.
company said it was still owed $3.5m (£2.2m) from its
German tax financing partner on Last Orders and cited costs of $640,000
(£400,000) due to delays Harv The Barbarian
" The lead actor requested guarantees which we were not willing
to provide until all contracts were signed," Hill said. "As
a result the actor has moved on to pursue other projects."