MOVIE firm run by a former Blackburn businessman has seen a sharp rise in profits.

Winchester Entertainment saw pre-tax profits for the six months to September 30 rise by 38.1 per cent to £972,000 against the same period last year.

Boss Gary Smith said that both the firm's television and film businesses had made significant progress during the year.

Winchester Films had signed a three-year exclusive deal with American-based Wind Dancer's films and there had been further extensions to deals the firm already has with MGM and Daybreak Productions.

The firm also reported strong sales of Heartbreakers, a new $53m comedy starring Sigourney Weaver and Gene Hackman.

Its television arm completed four children's television series and two new series, Snow Children and Wheels on the Bus, are currently in production.

"The last six months have been an exciting time for Winchester," said Mr Smith, chief executive.

The firm is now raising new funds in the city to develop its UK film distribution business, acquire rights to US studio released films and to market the group's catalogue of children's television programmes.

Former QEGS pupil Gary moved into movies from accountancy, but his first business was the ailing Kenyon's Bakery in Blackburn, which he bought from receivers. The venture wasn't a success but it gave him experience which he put to good use when a cartoon creator asked him to help finance a new series in 1990.

In March 1993, he launched London-based Winchester plc and floated it on the stock market later that year. Despite moving to Birmingham, he is still a huge Blackburn Rovers fan and his new home is called "Ewood Lodge".