Storm loss fails to deter acquisition ambitions

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The Independent Online
Storm Group, the children's animation company, warned that production delays on a new television series and exceptional expenses connected to discontinued activities had thrown it into losses for 1994. But these losses had not hampered negotiations for the substantial acquisition of a larger company in the same industry, said James Driscoll, chairman.

Shares in Storm have fallen since they floated in 1990 from a high of 37p to 12.5p as the company has struggled to turn its television production and merchandising businesses into profits. Despite four rights issues in as many years, the company lost £2.1m in 1993 but made a profit of £47,000 in the first half of 1994. End-of-year results were hit by the closure of an American subsidiary, which led to a £548,000 goodwill write-off.

These setbacks have not humbled Mr Driscoll's ambitions. Encouraged by the signing of a fourth series of Astrofarm in December and the imminent completion of Creatures of Delight, he has signalled that the company is on the point of a reverse takeover ofa company with a more substantial product base and a more stable income stream.