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Entertainment One - Likely FTSE-250 inclusion in August

June 2013

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:
  • 192p
Having completed its largest acquisition to date,  Alliance Films, in January, ETO becomes the largest independent film distributor in the world with market leading positions in Canada and the UK but also operations in the US, Spain, Benelux and Australia.On a reported basis, sales for the year to 31 March were up 25% to £629m and despite bearing heavy content creation costs, adjusted profit was £53.8m for eps of 15.9p. Underlying EBITDA rose19% to £62.5 with Alliance contributing £69.7m sales for three months, but had it been included for a full year sales would have been £832m and underlying EBITDA £77.7m.  Keynote to these results is that ETO's original target to deliver annual synergy savings of C$20m ov ...

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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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