Half-time losses have mounted for Galleon Holdings, the entertainment firm now headed by entrepreneur David Wong.
Mr Wong succeeded Black Country millionaire Jim Driscoll - creator of the internationally famous Shoe People cartoon series - as chairman of the group in late March.
Yesterday he told share-holders that operating losses for the group for the six months to March 31 came in at £453,000, compared to the p revious year's loss of £193,000.
However, turnover rose by 34 per cent, from £553,000 to £743,000.
Mr Wong said in a state-ment: "The last year has seen the new management team focus the business on two key areas, Galleon Entertainment and Croco Worldwide Sourcing.
"In doing so, the operations of the company have now moved to London with the company gearing up for continued growth.
"Galleon has already managed to grow its revenue by 34 per cent in the six months to March compared with the same period last year and has built an infrastructure that will deliver strong growth through to the end of the year and for the future.
"As a result of this we have seen an increase in overhead in the first half of this year which has had a negative impact on operating profit in the short term."
Galleon, previously head-quarted in Stourbridge, holds the rights to a host of children's programmes, including The Mysti Show and Skunk Fu. The company also designs and markets the Croco range of toys.