Write-off costs drag Pinewood down despite revenue growth
PINEWOOD Shepperton made a loss last year as the film studio took a hit from the failure of its movie set development project.
Project Pinewood – a plan to build replicas of landmarks including famous cities, a castle and a college campus – was blocked in January, costing the company £7.6m in write-off costs.
Expenses relating to the Peel Group offer, in which the property investment company gained 73 per cent of Pinewood’s shares after attempting a hostile takeover, set the studio back £3.3m.
Pinewood Shepperton posted a £2.9m loss for the 15 months to 31 March, compared to a profit of £5.8m for calendar 2010.
But one-off costs aside, business was booming at the film production group, with revenues up substantially to £62.9m. Film revenues grew to £44.9m, boosted by the filming of blockbusters Dark Shadows, starring Jonny Depp and Helena Bonham Carter, at Pinewood Studios and Wrath of the Titans at Shepperton Studios.
The group said it was in good shape looking ahead, with the new James Bond film Skyfall still in production at Pinewood and a continuing rising demand for the studios’ facilities.
Pinewood’s mega portfolio includes most James Bond films as well as the Harry Potter series.
Its shares rose 9.2 per cent to 332p.