Shares digital

DQ Entertainment (DQE:AIM) – Interims PTP: -$0.07m (-$0.3m) Divi: n/a (n/a)

Maiden results from the Indian animation production company showed it is on track, with revenues up 35% to $8.92 million. It also significantly reduced its pre-tax losses to $68,000 from $286,000 for the same period the year before. Chairman and chief executive Tapaas Chkravarti says he is confident that revenues will continue to grow in the second half of the year and that it will be profitable at finals.

The company listed at the end of December last year raising £26.8 million before expenses. That money, it says, will be used for investments in intellectual property partnerships and possible acquisitions and joint ventures. Some of it is also being used to buy out existing investors, which include India Value Funds and TDA Capital Partners.

It already has around 80 clients including Walt Disney, Nickelodeon, BBC and NBC-Universal. It recently entered into a home video market distribution agreement with DVD and CD giant Moser Baer for its Pet Pals and Ratman series and has a newly launched technology facility capable of generating game animation for the next generation consoles like the Xbox 360 and PS3, which it sees as a key growth area. The shares floated at 136p and have ticked up to 140p since then, although trading is fairly illiquid.

Shares says: There is a solid market for animation, especially in India but some more deals are needed to lift the shares further.

by: Susanna Twidale