Robot Wars blow shoots down TV Corporation

Television corporation, which issued a profits warning two months ago after its Robot Wars programme was axed in the US, plunged into the red last year following a hefty write-down for its Californian subsidiary, Pacifica.

The group, which produced the controversial live autopsy for Channel 4 last year, reported full-year losses of £10.2m, up from £2.9m last time. This was after writing off £13m for Pacifica, although TV Corp said the recent sale of the subsidiary's assets and goodwill should allow it to recoup some of the write-down this year.

Jeff Foulser, its chief executive, said there was still life in Robot Wars, which features fighting model robots, despite Viacom's decision to drop it. The move cost TV Corp £800,000 in lost profits. Robot Wars, which was also dropped by the BBC, will move to Five this year and has found a new home in the US with Tech TV, the cable channel backed by Microsoft co-founder Paul Allen.

Mr Foulser, who took over as chief executive in late 2001 after his predecessor left unexpectedly just ahead of a profits warning, said 2002 was about "clearing up quite a lot of stuff that didn't work and investments that were poor". This included an attempt to turn powerboat racing into an aquatic version of Formula One.

TV Corp said its finance director of 15 years, Stephen Callen, was stepping down for "personal reasons" with a £100,000 pay-off. He will be replaced by Malcolm Gardner, who used to work for KPMG.

Shares in TV Corp rose 6p to 107.5p, off a near seven-year low on City relief that the company had drawn a line under a disastrous year. Sales fell 12 per cent in the year to end-December from £77.3m to £68.3m, partly reflecting the disposal of loss-making businesses. Profit on its continuing activities before tax and goodwill was £4.2m up from £3.95m, the company said.