via telegraph.co.uk
The company, which is chaired by Greg Dyke, the former BBC director-general, blamed the loss on the increasingly competitive marketplace for pre-school broadcasting.
In its results statement, HIT said: "There are a number of production companies operating in this space, and while the industry has seen a proliferation of specialist kids' channels emerge during the past decade, overall TV revenue growth remains modest. This is due in part to the large broadcasters developing their own programming, and hence the demand for an independent third party has declined."
It also blamed the decline in the market for sales of DVDs and said "new offerings, such as digital downloading, will present challenges to the traditional sell-through model".
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