A BLACKBURN entrepreneur saw millions wiped off his personal fortune after his company warned profits would fall.

Shares in Winchester Entertainment, founded by former QEGS pupil Gary Smith, dived by more than 50 per cent after the film distribution company warned that its full year results would be 'substantially' below those of the previous year.

The group's value more than halved from just over £35million to £17million minutes after the announcement was made to the stock exchange. Gary owns 3.27million shares in the company and the news knocked more than £2million off the value of his stake in the company.

"There is uncertainty surrounding the timing of a number of films previously anticipated for delivery in the year to 31 March 2002."

Winchester currently has £8.1million cash in the bank and no borrowings and the board says it remains confident in Winchester's future prospects.

Former QEGS pupil Gary moved into movies from accountancy, but his first business was the ailing Kenyon's Bakery in Blackburn, which he bought from receivers.

A cartoon creator asked him to help finance a new series in 1990.

In March 1993, he launched London-based Winchester plc and floated it on the stock market later that year. Despite moving to Birmingham, he is still a huge Blackburn Rovers fan and his new home is called "Ewood Lodge".