Galleon Holdings, the Stourbridge-based new media group headed by entrepreneur Jim Driscoll, was in upbeat mood yesterday after posting an increase in annual sales and cutting losses.
Turnover for the year to September 30 came in at £1,134,456 compared with £971,564 for the previous 18-months.
The group's pretax loss was £1.426 million versus a loss of £6.336 million in the previous 18 months.
Mr Driscoll told shareholders: "The operating loss in this period was £1,416,285 compared with £6,202,872 as reported in our 2004 annual report for the 18-month period up to September 30, 2004."
Galleon last year made a series of senior management changes.
Mr Driscoll said: "A series of intellectual property rights acquisitions made during 2005 have placed the company in a favourable position for continued growth in 2006 and beyond.
"As part of this process existing activities were reviewed with a view to prioritising our future efforts and resources.
"As a result, we have decided to write off those projects which will no longer be our focus going forward, and this includes a partial write down of the value attached to Peppers Patrol.
"Galleon now has a totally focused strategy - a strong portfolio of long-term sustain-able children's IP (intellectual property) with first revenues due imminently and, alongside this, a premiums business which is delivering regular revenues and has an attractive order book.
"With the new management team in place, we are, without doubt, in our strongest position to date with solid foundations from which to deliver real growth for our shareholders."
Mr Green said the new management team had realigned Galleon's focus on two key areas of the business - entertainment and Croco Worldwide.
He went on: "Galleon owns, d evelops and manages entertainment-based intellectual property rights targeted at the younger audience of children and 'tweens'.
"We have significantly strengthened our IP portfolio so that we are balanced in terms of brand maturity as well as genre.
"Specifically, we have focused on acquiring IP rights that will generate revenue from 2006 onwards.
"2005 was a year where we have focused the group on building a solid platform for future growth.
"In 2006, we will see the benefits of this coming through in revenues, with the advances and royalties from Galleon Entertainment IP and continued growth of the Croco Worldwide business."