Sales of Bob the Builder products fell last year

The firm said The Sunday Times report saying it was in talks with Swiss investment firm Mediawin & Partners was inaccurate.

HIT confirmed that it had recently held a meeting with Mediawin but stressed that no potential bid was discussed.

HIT's chief executive, Rob Lawes, left last month after a fall in its profits.

Requested meeting

Mr Lawes was succeeded, on a temporary basis, by HIT's founder and former chief executive Peter Orton.

At no stage has a bid for the company been discussed HIT Entertainment

The Sunday Times said it understood that Mr Orton had held informal talks with Mediawin in recent weeks.

"HIT's board confirms that it regularly meets existing and prospective investors and has met with Mediawin Partners at their request on this basis," the firm said in a statement.

However, it added: "At no stage has a bid for the company been discussed."

Mediawin, which is based in Geneva, could not be reached for comment

HIT suffered a 16% fall in profits last year as sales of Bob The Builder products, which account for more than a fifth of its revenue, fell by 33%.

HIT distributes Bob The Builder in more than 130 countries and has sold more than 2m videos, books and magazines.