Entertainment Rights Share Discussion Threads

[joeblogg1000] 01/12/2008 18:32

Roch 1.4p we are well below that. I have been trawling for news on Lone Ranger but not much info and this won't happen till next year, although they have released cd's for old series ?

[rochford6] 01/12/2008 18:28

LONDON, December 1 (newratings.com) - Analysts at Canaccord Adams maintain their "hold" rating on Entertainment Rights Plc (ERT-GBX), while reducing their estimates for the company. The target price has been reduced from 4.30p to 1.40p.

In a research note published this morning, the analysts mention that the company has reported its interim revenues and EBITDA losses at £20.3 million and £9.2 million, respectively. Entertainment Rights has breached facility covenants for the August and November tests, and has won a waiver to covenants till January, the analysts say. The estimates reflect caution for the near-term trading conditions, Canaccord Adams adds. The EPS estimates for FY09 and FY10 have been reduced from 0.4p to -0.8p and from 1.0p to -0.7p, respectively.

[rochford6] 30/11/2008 09:16

According to this report Nick Philips is going????????

Meanwhile, Postman Pat is delivering a slew of P45s at Entertainment Rights, home of the children's character, together with The Lone Ranger, Lassie and He-Man. Among those expected to go is chief executive Nick Phillips who was appointed eight months ago with a brief to revive the business.

Some 30% of jobs are being cut in Britain with 50% of the headcount in America expected to be axed as part of a £5m cost-saving round.

"ER is doing everything it can to minimise redundancies wherever possible," the company said. With a market value of £8m, ER is buckling under £125m of debt and has breached banking covenants. However, it is close to announcing that lender Bank of Scotland has given it a stay of execution – essentially greater borrowing headroom and the deferral of penalty costs.

[rich2006] 28/11/2008 09:32

I hope your banks (hbos) are more sympathetic than woolies banks were.

reading the above article post 2692
i would imagine De Agostini group are waiting for ERT to be up against a brick wall and shareholders have no choice
AIMHO

[waterloo01] 28/11/2008 09:23

I'd be most interested in a valuation of ERT assets. Broken down, anyone have an idea as to the low end valuations (have to accept this would be a fire sale situation). Net debt at £125m. See below from interims:

At the period end, net borrowings stood at £125m within previously agreed facilities. However, we have now completed a review of our interim accounts in conjunction with our auditors and have now determined that there was a breach of our debt cover ratio at 31 August 2008, and we anticipate a further breach at 30 November 2008. Constructive discussions have been held, and continue to be held, with our lending bank, which has supported the Company by granting a short-term full waiver of the covenants at these dates and £1m of additional funding for the Company's short-term needs. We continue to work closely with the bank to put in place a more permanent solution and to enable Entertainment Rights to realise its significant longer-term potential.

[toptrump] 27/11/2008 20:37

Interesting read, however they'd need circa £50m for postman pat alone to make it worth our while.

Sorry waterloo01 I meant to add - over what period of time I'm not sure i.e. it didn't say.

I think they are better off selling the lot. The co. even with its debt must be worth around £200m - especially if the Lone Ranger proves to be a success. They must have had this in mind when buying classic media.

Therefore I would suspect a bid of around 10p would be reasonable (even in the current climate) - so making its stock value £70m, then it could use the other £130m to clear its debt. Just off top of my head - Unrealistic!

[rochford6] 27/11/2008 10:44

UK focus for De Agostini global ambition
Published: 26 November 2008 18:36 Author: Kate McMahon More by this Author Author: Will Hurrell More by this Author Last Updated: 27 November 2008 10:33 Reader Responses

Postman Pat

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European media giant De Agostini Group is poised for an acquisition spree in the UK and the US, with a focus on companies with strong IP catalogues. Brands owned by troubled kids company Entertainment Rights are believed to be at the top of its shopping list.
De Agostini has brought its existing production companies such as Marathon Group, Magnolia Productions and Diverse Production together under a new brand, Zodiak Entertainment, which will lead the expansion.

The company has approximately €400m (£336m) in equity it can use for acquisitions and plans to float Zodiak on the Stock Exchange around 2011.

Chief executive Lorenzo Pellicioli said he would snap up "bargains" in the economic downturn to help generate revenues of up to €800m to €1bn by 2011.

Speaking to Broadcast, Pellicioli said Zodiak was looking to make a "major acquisition" in the UK within six months. The company is eyeing companies with a strong IP catalogue and DVD sales potential, as well as companies with a strong animation, children's and entertainment output.

Sources pointed to Entertainment Rights, which owns the likes of Postman Pat and Rupert Bear, as a company that fits the bill. It was forced to secure emergency covenants for August and November and is still searching for a permanent solution to its funding requirements. It is understood the company's main lender, HBOS, recently sent in the Deloitte corporate recovery team to help protect its interests.

Asked if Zodiak was preparing a bid, Pellicioli said: "I'm not sure if it [Entertainment Rights] is cheap yet but we are looking to all the IPs. IP is definitely something we are looking at," he said.

A spokesman for Entertainment Rights declined to comment.

[waterloo01] 26/11/2008 19:46

Unless each of the 22 are being paid over £200k a year, don't see it. This is now in the -90% group, and few survive (see Woolworths in admin tonight). Doubt fire sale would cover debt.

I don't own these anymore nor do I short. If your currently invested, my sympathy if your thinking about it, unless your a professional or have insider knowledge, save your hard earned ££.

[toptrump] 26/11/2008 18:27

Also on broadcastnow.co.uk it says that it is to shed around 22 staff in order to cut costs of around £5m. Management seem to be trying their best!

[hotips] 26/11/2008 12:53

Seems like positive PR is begining a slow trickle...... but we need much more to bring back confidence.

Gald to hear about the overhead cutting. Long overdue.

[joeblogg1000] 25/11/2008 13:49

Shame anyone has to lose jobs over Xmas but hopefully not too many and the company becomes stronger and more secure!!!

[rochford6] 25/11/2008 13:22

looks like the cost cutting is coming into effect.

22 jobs go at Entertainment Rights 25 Nov 2008
Children's media firm Entertainment Rights has axed 22 jobs at its UK office as part of a strategy to reduce debt and dispose of "non-core assets."

[torquayturk] 25/11/2008 10:40

SVG were closely linked with the 'taking private' of Chorion. It was their backing that sealed the deal for Lord Ali.

A few futher thoughts;

There is a pic of Edward Knighton on the B&H website. He looks like a chap in his mid/late 40's. I don't think he would be looking to blot his career with a company failure whilst he is in his prime. So he must be pretty confident he can save the company.

HBOS must be aware that in a 'fire sale' situation they are likely to get much less for their security. Selling the IP library individually in a terrible market to a very limited number of potential purchasers is a bankers worst case scenario. If they can see a way of trading through this period they will view it as the only realsitic way of getting their £125m back.

The 'pinch points' on cashflow of end Aug and end Nov are quarter dates which I would guess tie in with ERT's VAT quarter end ie they have to write a large cheque to HM Revenue & Customs. The same applies to the end Jan 09 ie the date that HBOS's current support is due for review. I cant see HBOS not allowing that cheque to be paid. As we all know that would very quickly be game over.

Don't forget Trevor Hemmings in this mix. He is owed a lot of money and time by this venture and shrewd chaps like him usually sort it out one way or another. I wonder if SVG and Ashby Manor Ltd have a direct line to each other?
Between them they will decide the fate of this outfit and therefore when/if HBOS are going to get repaid.

Still holding (since Sleepy Kids days) and needing 9/10p to get my money back!!

TT

[waterloo01] 22/11/2008 20:36

Doesn't ERT get kicked out the FTSE after 10th December as it's market cap (£5.6m) now places it at number 828 on list and well into AIM territory. Is expulsion automatic?

Been tempted to have a bet on ERT, but it wouldn't be rational to put money into this. Add expulsion into the mix and this just keeps flagging RED. Will this company exist on Dec 11th?

[dubbsie] 21/11/2008 14:04

Also if they were thinking of pulling their support why lend another £1m?

[joeblogg1000] 21/11/2008 12:35

dubbsie , I agree . There are some big holders and amazed there has been no activity or take over talks?

[dubbsie] 21/11/2008 12:27

There is no benefit to the Bank by pulling the plug in my opinion.

[joeblogg1000] 21/11/2008 11:40

Yesterday was a bad day possibly caused by a lot of pi's deciding to call it a day. The Funds holding this should support by injecting more capital and cutting costs and reduce the debt. The banks should support otherwise there will be no one to lend to.

[hotips] 21/11/2008 11:12

The appointment of a new PR outfit sounds positive. Hardly likely to do this just to announce that the company has gone bust.

Incidentally, surely the stronger dollar must be helping ER?

[rochford6] 20/11/2008 12:34

maybe this new PR company that ERT have brought in will help

Chloe Markowicz 19-Nov-08
Entertainment Rights, the global media group, has hired M: Communications as its retained financial PR agency.



Nick Phillips joined as the new chief executive of Entertainment Rights in March, which led to a review of the comms side of the business. B

Bell Pottinger was previously the media group's agency for four and a half years, before M won the account in a four-way pitch.

Entertainment Rights specialises in children's and family entertainment programming, including brands such as Postman Pat, Casper the Friendly Ghost, and Basil Brush.

M will report to Simon Avis, head of PR at Entertainment Rights. The account team will be overseen by M's co-founder Nick Miles and will include Charlotte Kirkham (formerly of Bell Pottinger) and Ben Simons.

[joeblogg1000] 20/11/2008 12:30

If the banks stop lending to all and sundry what hope is there for anyone? Surely some of these licenses added together are worth more than the debt?

[riptracker] 20/11/2008 12:19

down 46% for ert 0.1p arriveing bye, bye......... close the door and awitch of the lights.

[rochford6] 20/11/2008 12:18

certainly not looking good now.