Entertainment Rights announced this morning that it has missed its revenue forecasts for the second half of 2007, with profits also being hit.
A statement to the city said: "Despite the increase in revenue from the US Christmas titles, group revenue and underlying EBITDA during this key trading period did not meet the board's expectations.
"The board anticipates that group revenues for the year ended December 31st 2007 are expected to be slightly below the lower end of the current range of market expectations with a consequent impact to reported profitability.
While it is disappointing to report a trading period that is below our expectations, the board remains confident that ER's business model is robust."
ER also revealed last week that Universal Pictures UK - which manufactures and distributes its DVDs for the UK market - had failed to meet its release dates in October and November.
Entertainment Rights is due to launch new series Postman Pat Special Delivery Service on Cbeebies and BBC2 later this year. Its other brands include Rupert Bear, Basil Brush, Jim Jam & Sunny, Casper and Finley the Fire Engine.