Despite exceeding virtually all the analysts’ forecasts with its interim figures, Carlton Communications Plc saw its shares slide a bit yesterday over worries about its video duplication business. The London-based group saw pre-tax profits jump 64% to ú120.1m from turnover up 22% at ú800.6m. The video duplication subsidiary, Technicolor, which is the world’s largest manufacturer of pre-recorded video cassettes according to the company, was hit by a combination of rising raw material and packaging costs and the relative weakness of the dollar. Turnover at Technicolor rose by 7% but profits fell by the same amount. Carlton’s only real computer-related business, which comprises Quantel, Abekas and Solid State Logic, accounts for around 11% and 10% of operating profits and turnover respectively. They companies are famed for their broadcast, digital effects and audio production equipment. The group’s core television business – it has the London independent television franchise – contributed half the operating profits, ú60.8m from ú339m turnover. Carlton also owns Central Television, which has the franchise in the midlands. Television advertising rose by 10%, against the industry trend, said the company. The budget record and video publisher, Pickwick, despite a reo rganisation, is still losing money. Carlton expects the breakfast television company, GMTV, in which it has a 20% stake, to make a full-year profits for the first time. The feeling among some media watchers is that Carlton has healthy short-term prospects, but as the UK television market becomes increasingly competitive the long-term outlook for its main business is not so clear. Analysts expectations for Carlton as a whole have not changed, still ranging ú235m to around ú250m pre-tax profits. Interim dividends were up 14% at 9.3 pence.
