Former C5 chief to run film producer

David Elstein, the former chief executive of Channel 5, has joined the film company Civilian Content as chairman, replacing Richard Thompson, who once owned Queen's Park Rangers football club.

The company, which has been backed by £33.5m of National Lottery money, yesterday saw its shares slide 16 per cent after it revealed it would miss market expectations for this year. Civilian blamed delays in contractual payments, in particular from international sales of 51st State, its action comedy starring Samuel L Jackson. Its shares fell 5.5p to 28p.

Civilian also admitted, "certain films have under-performed", such as Dust, the Joseph Fiennes retake on the Western genre. The company also said that it had become more difficult to sell films to distributors in the aftermath of the attacks on 11 September.

The appointment of Mr Elsteinemphasises Civilian's intention to step up its television financing activities. Tim Willis, a director, said: "We hope to have parallel TV and film operations." Mr Thompson, who still owns 25 per cent of the company, has left the board, as has Lyndsey Posner. Civilian said it had appointed Crispin Barker, a major shareholder with a 22 per cent holding, as a non-executive director.

The board changes mark the final chapter in Civilian's reinvention as a film company from a meat-packaging firm. They follow the acquisition of a number of production companies from Mr Thompson.

Civilian recently angered its shareholders by closing three of these companies just two years after they were purchased. The company said "further write-offs of goodwill and write-downs of direct investment in films" had followed as part of a restructuring programme. Civilian also plans to combine its two television production companies and cut overheads.

Mr Elstein said: "I am confident that the re-structuring of the business creates the basis of profitable operations going forward." Civilian added that both its films released in December, 51st State, and A Christmas Carol, an animated version of Charles Dickens' tale, "were performing well".