The share price of Home Entertainment fell from 240p in December 2003 to less than 55p in March 2006, and the market capitalisation fell to less than £11 million, even though revenue in the previous year was £140 million. Clearly the company seemed to be in some difficulties so the question was whether sufficient changes were being made to recover from this situation. The possible excessive dominance of former "Executive Chairman", now "Chairman", Iain Muspratt was also a cause for concern, particularly as he and his family owned a controlling stake in the company. In March 2006, UKSA sent the following letter to all shareholders: Mailer012_Home Entertainment, and requested a meeting with the Chairman. The following press release was also sent out at the same time: Press028_Home_Entertainment.

Anyone who responded to that letter was sent the following letter which provides more background information: Home_Ent_Response_Letter. Note that it was subsequently agreed that UKSA representatives would meet the directors of the company in May 2006.

The following letter was also sent to shareholders in April 2006 when the company announced an EGM to enable it to rewrite some of the managements' share options: Home_Ent_ShareOptions

UKSA director Roger Lawson had a meeting with the directors of Home Entertainment on the 9th May 2006 and that and other news announcements were documented in the following letter to shareholders: Home_Ent_Response3

The following letter was sent to shareholders following publication of the annual results in September 2006: Home_Ent_Response4

On the 3rd April 2007, the company published some interim results (covers 36 weeks due to the change in accounting date). The overall picture looked positive with much reduced losses and improved revenues, except in rental of videos/DVDs. Cash flow was negative however, so the situation was not exactly clear, although the general tone of the announcement was positive. But only two weeks later the company published a trading statement which was effectively a new profit warning - it said that revenues, particularly rentals had been impacted by the good weather over the Easter period with the result that the financial expectations for the year would not now be met. In addition one of the non-executive directors who had only been there for 3 months, abruptly resigned. This caused the share price to more than halve to 22p. Note: for a company with turnover of probably more than £150m this year, the market cap of less than £4m must be one of the highest ratios ever seen. Obviously the market takes a pretty dim view of the prospects going forward, and there was much negative comment in the press with suggestions that refinancing would be required. One analyst suggested that shareholders might wish to follow the prompting of the company's epic code, i.e "CHUK".

On the 21st August 2007 the company announced that it as going into Administration , having failed to progress a possible sale or refinancing of the business. It subsequently transpired that identifying offers that were acceptable to the "key shareholders" had been the major problem. A report on the Administration was issued to shareholders on the 16th October 2007. It is clear that there will be no likely payout to ordinary shareholders.