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Entertainment Rights - Acquires 66.7% of Rupert Bear

December 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ERT
  • Price:
  • 31.5p
Entertainment Rights’ latest acquisition came too late to be included in last month’s update. The group has acquired a 66.7% interest in 85-year old children's brand Rupert Bear from Express Newspapers which will retain a 33.3% interest. ER is paying £6m (£3m upfront and £3m payable in two installments next year) for the rights in perpetuity covering various areas including audio visual, licensing and merchandising, publishing, live events and new media rights. No financials were given and therefore brokers have not changed their forecasts. Broker Altium forecasts £6.8m for the year ending this month for eps of 1.6p on a 5% tax charge. Target for next year is £8.7m and 1.9p (10% tax). ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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