German-based global animator BKN is confident 2005 will be another year of strong growth. Having moved into the black for the year to September, with turnover up 63% to Û7.3m (£5.1m) and pre-tax profits ahead 238% to Û1.7m, the company has a good pipeline of productions. BKN's sales stem from an extensive film library and the cartoon series it produces. Currently, it's receiving revenues for its Legend of the Dragon series. A new title, Ali Baba - The lost Scimitar of Arabia, is in production. The business also has rights to products, such as toys and DVDs, based on the cartoons. In the autumn BKN will re-launch Kong, King of Atlantis, which it produced in 2000 and whose costs are already covered, to benefit from the release of King Kong by Lord of the Rings' director Peter Jackson. New titles Spy Trap and Shanghai Tiger will be produced for 2006. Having always regarded itself as a global business, distributing its products to 95 countries, BKN opened an office in Singapore to exploit opportunities in the Far East, particularly China. As well as selling its cartoons into Asia, it seeks Asian cartoon companies looking for distributors. A representation deal with Hong Kong outfit Agogo Media was recently made. Net cash is Û2.2m, but this stems from previous fundraisings. A Û5m convertible bond was issued last September. House broker Westhouse Securities expects pre-tax profits for 2005 to reach Û3.2m but the prospective p/e of 36.9 is way above the sector average. Too rich for our tastes.