Alan McGee's Poptones record label is reported to have turned round its financial fortunes after a period of severe cost cutting earlier this year, though it is still making losses. In March 2001, the public company announced losses of £1.1m for a six-month period on a turnover of just £175,000. Following cut backs on workforce and admin expenditure the company operating losses were down to £364,000 for the year to 30 Jun, down from £1m the previous year.
As well as cost cutting, the label benefited from two joint ventures with Telstar which included the UK release of The Hives album ‘Your New Favourite Band’. The joint ventures see Poptones and Telstar investing 50/50 in new acts, taking an equal split of profits. While The Hives got all the press the label is confident other artists involved in the partnership deal will also have successes.