Aardman, the British animation studio behind Wallace and Gromit, narrowed its annual loss to £1.1 million but missed its target to return to profit in 2025, according to company accounts.
The employee-owned business had aimed to record a small profit after two consecutive years of losses. Production delays and what Aardman described as a "challenging market" in children's content prevented the studio from reaching that goal.
The studio did not disclose specific revenue figures, profit forecasts for coming years, or details about which productions caused delays. It also did not specify which market conditions it considered most damaging to its financial performance.
Aardman has produced films and television content including the Wallace and Gromit franchise, Shaun the Sheep and Chicken Run. The studio operates as an employee-owned company.