Project Pinewood refusal costs £7.1m
THE refusal to grant planning permission for Peel-owned Pinewood Shepperton’s proposal to build a sprawling set of more than 1,400 homes that could also be used as a film set has cost the company £7.1m.
The write-off is revealed in the company’s annual accounts to December 31, although the firm stressed that it was a non-cash item and was “not material” to its future.
Pinewood Shepperton had embarked on the project around four and a half years ago and had planned to build homes in streetscapes reflecting areas of Amsterdam, Paris and New York that could also be used for filming.
However, after a lengthy planning battle the Secretary of State for Communities and Local Government refused permission for the scheme last month.
The company, which was taken over by Peel last year, posted record revenues of £50.7m in 2011 – a 17% increase on the previous year. Film revenues were up 24%.
However, the write-down and other associated costs meant that it declared a pre-tax loss of £3.9m for the year, compared with a £5.8m profit in 2010.
Chief executive Ivan Dunleavy said the company had delivered a “strong” performance, with revenues from its film, TV and international divisions all increasing.
“The ongoing demand from big budget films and large scale television shows for our unique facilities remains resilient,” he said.
He added that it was “disappointed” with the Project Pinewood decision and now needed to reassess plans for the site.
“The board, supported by its major shareholder, are determined to work with government and stakeholders to deliver the long term vision for Pinewood that it needs if it is to remain a global centre for the film and creative industries.
“We will therefore continue to engage to ensure that the site meets the needs for growth over the next 20-30 years.”
Peel bought most of Pinewood’s shares in July last year in a deal which valued the business at around £96.1m, although Stockport-based jeweller Warren James also owns a significant minority stake.
