Metrodome has reduced operating losses by almost 70 per cent after restructuring to concentrate on film, video and television distribution.
During the year to March 31st, the London-based media firm sold some businesses, snapped up catalogues of old children's programmes and rights to future shows, and raised £1.5 million in a rights issue.
As well as its original theatrical movie business, the company now also has the rights to more than 1,900 episodes of children's TV classics including Transformers, My Little Pony and GI Joe.
A deal with majority shareholder TV Loonland in September 2002 also gave Metrodome first option over current productions include The Cramp Twins, Pong Whiffy and Yvon of the Yukon - which are shown on the BBC and the ITV network.
On top of 21 DVD and VHS releases during the year, Metrodome also distributed seven cinema releases including cult success Donnie Darko, which earned the company box office receipts of £1.6 million.
To ensure full houses wherever the film was shown, Metrodome's marketing for Donnie Darko included only circulating a minimum number of copies to cinemas, maximising its share of box office receipts.
Donnie Darko also performed well when released for rental in March and Metrodome said it now expected rental revenues to top £500,000.
Additionally, Donnie Darko's retail release in May saw more than 100,000 copies sold in the first month.
Despite incurring one-off costs of £626,000, Metrodome said group pre-tax losses in the year were cut to £1.1 million, compared with £3.3 million in 2002.
Metrodome said its restructuring had led to a significant reduction in costs which the company added would lead to a 21 per cent cut in overheads to £1.5 million in the new financial year.
Having sold its in-house rental department, Metrodome is now concentrating on acquiring higher margin products with longer-term value in the retail market as it looks to tap into the explosive growth of DVD.
PA