09/04/2001
Maiden results from health and lifestyle broadcaster Channel Health were sweetened by news that the company had pipped the likes of Granada and the BBC to produce content for the NHS. The £1.2m deal will see the digital TV channel produce seven half-hour programmes aimed at pregnant women as part of the NHS' plan to use interactive TV as a method of promoting awareness of health issues. According to finance director Dabinder Dhanda, the medium's beauty is that it enables viewers to 'drill deeper' into subjects ranging from pregnancy to heart disease and coming on the back of a similar agreement with the European Commission she is confident of strong repeat revenues. Analyst Adrian Kearsey, of house broker Beeson Gregory, is more cautious, warning that it remains to be seen how people will react to the interactive format. Despite full-year figures revealing just £20,000 of turnover (£1.1m was forecast), Kearsey claims to have been impressed by the group's ability to keep costs to a minimum. A pre-tax loss of £2.2m was much better than expected. With advertising revenues now beginning to flow, sponsorship deals from major drug companies under negotiation and plans to sell content to terrestrial channels being mooted, he forecasts sales of £2.3m next time out. Breakeven is forecast for 2002.
| Market cap: | £9.13m |
| PE Forecast: | n/a |
| Share price: | 25.5p |
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