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Entertainment One - Expects further synergies

January 2014

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:
  • ETO
  • Price:
  • 262p
We omitted to cover ETOs results last month due to lack of space. Even if H1 is seasonally quieter, you wouldn't want to be brushing these fantastic results under the carpet and the shares have hit several new highs since. As it was for H1 to end September, helped by the successful integration of Alliance Films, sales were up 65% to £364m and adjusted pretax profit was £21.2m (from £8.8m). Adjusted eps was 5.5p. Had Alliance been included for six months last year, sales would have risen 8% and operating profit by 43%.  Films dominates the business and recorded H1 sales up 9% to £306.9m and an operating profit of £20.9m, up 76%, reflecting efficiencies from the Alliance merger and management expect further savings to emer ...

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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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