Choices chairman Iain Muspratt said: 'Our industry remains plagued by piracy. Rental suffers from the availability of pirated new titles long before they are legitimately available.
'The industry is planning a series of enforcement initiatives, but it is essential for central and local Government to react more positively if they wish legitimate businesses in this sector to prosper.'
The company, which operates high street stores and a DVD rental business, reported a pre-tax loss of£4.19 million for the year to June 3, against a profit of£4.54 million the year before. Turnover declined by 4.5 per cent to£134.2 million.
Despite the fall, the business is adamant that it continued to outperform the market during the period. During the year, the group restructured the business, losing three directors in the process. The group is confident, however, that a new management team makes the group well placed to continue its recovery and achieve profitability.
The group has shed its poorly performing TV arm, ChoicesTV, which has haemorrhaged losses of£1.4 million over the period.
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