ERT Enter Rights.

    RNS Number : 6964J
  Entertainment Rights PLC
  08 December 2008
   
    Due to an internal technical error following receipt, text was erroneously removed from the document during processing and prior to
release. The original document was complete at point of submission.
    The reissued and complete announcement is shown below.

 


    Embargoed: 7.00 a.m., 8 December 2008


    Entertainment Rights Plc

    ("Entertainment Rights" or the "Company")

    Appointment of CEO, Board Changes, New Bank Facilities & Trading Update


    Appointment of Deborah Dugan as CEO

    Entertainment Rights Plc is pleased to announce that Deborah Dugan has been appointed Chief Executive Officer, effective immediately.
Ms. Dugan has served as President and CEO of Entertainment Rights North America since April 2007, prior to which she was President of Disney
Publishing Worldwide, the world's largest publisher of children's books and magazines. 

    Ms. Dugan succeeds Nick Phillips who, as CEO, initiated a thorough review of the Company's operations and who, as announced on 2
December 2008, left the company on 5 December 2008. 


    New bank facilities

    The Company is pleased to announce that it has agreed with HBOS, its principal lending bank, additional short term facilities of �13
million to cover potential cash flow shortfalls during the period to 28 February 2009. These facilities replace the short term increase in
working capital facilities of up to �1 million announced at the time of the interim accounts on 31 October 2008.  The Board continues to
work closely with its bank towards securing new, longer term, funding arrangements to support the group past 28 February 2009. 

    Other board changes

    The Company also announces the resignation of Jane Smith, Chief Creative and Commercial Director and her departure from the Board with
effect from today. Jane has been with Entertainment Rights since December 1999 and has played a key role in building the brand and content
portfolio, including Postman Pat and Guess with Jess, to more than 3,600 hours.  The Company recognises her long and significant
contribution to its development and, in thanking her for this, wishes her well in her future activities.

    The company also announces that Paul Ashworth, ACA, Group Financial Controller, becomes Company Secretary in succession to Irvin Fishman
with effect from today. 
    
 

    Trading Update

    It remains too early to ascertain the likely pattern of Christmas trading, although initial indications are that shipments of goods into
the retail trade will be later than anticipated and that sales will be lower than expected. However, work on mitigating actions including a
cost reduction plan has advanced rapidly, and it is intended that the Company's group payroll, which stood at 150 employees at the time of
the interim announcement on 31 October, will be reduced to around 100 employees by 31 December 2008. The target of �5m annualised cost
savings announced in the interim accounts will therefore have been achieved by the year end. 

    Following the news that Woolworths plc and its subsidiary Entertainment UK Ltd resolved to file petitions for administration in the High
Court, the Board wishes to report that Entertainment UK Ltd was one of the largest customers of the Company's UK Home Entertainment
division, and, at the present time, the Board estimates that despite the fact that the credit exposure has been actively managed over recent
months it still owes the Company approximately �800,000. The directors are actively seeking clarification as to the recoverability of this
sum and the effect of the potential loss to the Company. Should the sum not be recoverable then the cash impact would be felt in spring
2009, and would be mitigated by savings in royalty payments to rights owners of �300,000 leaving a net exposure of approximately �500,000.
The effect of Entertainment UK's administration on trading for the remainder of the financial period is uncertain, although the Company is
actively assisting other retailers who wish to replace the business which would otherwise be lost.  

    Rod Bransgrove, Chairman, said, 

    "Our strengthened financial position, streamlined organisation and new management are all vital steps forward in restructuring the
Company. Deborah Dugan is a highly distinguished Chief Executive whose industry knowledge and contacts will prove extremely effective in
taking the Company forward. Deborah's extensive global experience and her deep knowledge of the US entertainment business, our largest
geographical market, position us well for growth. Together with our recently appointed Chief Financial Officer, Edward Knighton, I am
confident that we now have the right executive team in place to take us to the next level." 

    Nick Phillips, outgoing CEO, said. 
    "I have completed the first stage of a restructuring plan which has involved an extension of banking facilities and a significant
reduction in costs. I recognise that specific industry and turnaround skills will be required for the next phase of the recovery and am very
pleased to hand over to Deborah Dugan as CEO."


    Deborah Dugan, CEO, said, 

    "Despite a difficult global economy, I am confident about our prospects and the global potential of our portfolio. With some of the
world's most popular brands and new business partnerships in the pipeline, we are poised to maximise our opportunities. Our team is making
excellent progress and I am excited by the challenge."




    Enquiries:


    Entertainment Rights plc - Tel. 020 8762 6200
    Deborah Dugan, Chief Executive Officer  
    Edward Knighton, Chief Financial Officer

    M: Communications - Tel. 020 7153 1540
    Ben Simons or Charlotte Kirkham



    Notes to Editors

    About Deborah Dugan

    Deborah Dugan's career spans 17 years of diverse media experience with leading global entertainment companies.  She was appointed
President and Chief Executive Officer, North America, for Entertainment Rights Plc in April 2007.  In addition to running U.S. and Canadian
operations, as a member of Entertainment Rights' worldwide management team, Ms. Dugan also spearheaded new business development
opportunities.

As head of North America, Deborah restructured operations and reduced key costs while increasing emphasis on marketing and consumer
products. Under her leadership, Entertainment Rights North America has substantially increased home video and consumer product sales.
    Prior to joining Entertainment Rights, Ms. Dugan was President of Disney Publishing Worldwide, the world*s largest publisher of
children*s books and magazines with a presence in 75 countries, overseeing 275 magazines and more than 4,000 new book titles, leading a team
of more than 500 employees worldwide and generating $1.8 billion in global retail sales. Under her stewardship, Disney Publishing became a
major destination for name authors like Dave Barry, Michael Chabon, Maurice Sendak, and Toni Morrison. Additionally, she supported the
development of popular new "tween" properties, including The Cheetah Girls, W.I.T.C.H and Artemis Fowl. She first joined Disney in 1998 as
Vice President of Business Development and Planning.
 
Previously, Ms. Dugan was an Executive Vice President at EMI Records Group. Prior to EMI, she headed legal services for Volunteer Lawyers
for the Arts, and was a mergers-and-acquisitions attorney for the law firm Mudge Rose Guthrie Alexander & Ferndon.  A full profile and photo
of Deborah Dugan are available from M: Communications.
 
About Entertainment Rights
 
Entertainment Rights Plc (ER) is a global entertainment media company, with a portfolio that includes some of the world*s most popular
children*s, family and pop-culture brands.  With offices in London, New York and Nashville, the Company specialises in the origination,
acquisition and distribution of children*s and family programming, characters and brands.  The Company*s catalogue appeals to a broad
demographic from pre-school children to young adults and families.  The ER catalogue consists of more than 3,600 hours of content that has
been distributed in more than 170 territories worldwide.  ER*s expertise is in the exploitation of its catalogue of brands and content in a
number of key disciplines, including television and theatrical distribution, product licensing and merchandising, live and home
entertainment, and digital media.
 
ER is a publicly quoted company listed on the London Stock Exchange. Annual revenues have increased from �1.8m in 1999 to �68.1m in 2007,
the last reported financial year.
 
Key brands in ER*s global portfolio include Postman Pat�, Where*s Waldo?*, Tinga Tinga Tales*, VeggieTales�, Rupert Bear�, George Of The
Jungle*, Lassie�, Casper The Friendly Ghost�, Basil Brush�, Finley The Fire Engine*, The Lone Ranger�, He-Man� and the Masters of the
Universe�, She-Ra* and Rudolph the Red-Nosed Reindeer�.
 
Visit www.entertainmentrights.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
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