Winchester boss cleared over deal

GARY Evans, chief executive of struggling film and TV group Winchester Entertainment, has been cleared of insider dealing by the Financial Services Authority. Evans sold shares worth £592,000 two weeks before issuing a profits warning in February. He has always protested his innocence, saying he needed the money to renovate a house.

He sold 400,000 shares at 148p. At today's price of 17p, down 2 1/2p, the sale would have netted him less than £72,000.

Having issued a further profit warning in May, when it said losses would be £6m, Winchester today said the losses climbed to £8.3m in the year to end-March. That compares with pre-tax profits of £3.2m the year before. Turnover equalled the loss at £8.3m.

There is no dividend, and the company's net asset value has tumbled from 120p to 93p a share. Chairman Leslie Hill said Winchester expected to return to the black in the year to March 2004.