Planning battle wipes out Pinewood’s profits
THE decision by Secretary of State for Local Government, Eric Pickles, to refuse permission for the Project Pinewood development has cost Peel-owned Pinewood Shepperton dearly, with the firm announcing a pre-tax loss of £1.9m for the fifteen months to March 31, compared with a £5.8m profit in 2010.
The company saw its revenues increase to £63m – up by 16% on an annualised basis on the prior period. Pre-tax profits before exceptionals also grew to £13.2m (9.1m).
However, the firm incurred exceptional costs of more than £11m during the period – £7.1m following the write-off in the value of Project Pinewood, £3.7m in costs relating to Peel’s takeover bid and associated share-based payments and almost £300,000 in restructuring costs.
The company also said that it was embarking on a consultation in the future development of Pinewood studios. Chief executive Ivan Dunleavy said: “Certainty as to its future development is critical to enable Pinewood Studios to plan for growth.
“Without major investment, Pinewood Studios cannot remain globally competitive and respond to the changing needs and ever-increasing demands of the screen and digital industries both at home and abroad.”
In April, the firm opened the 30,000 sq ft, £5.6m Richard Attenborough Stage on time and to budget at Pinewood, as well as completing a £3.3m power upgrade and added a new £500,000 workshop facility.
However, it has said that it requires “a transformational investment programme to expand its digital offering and HD television facilities”.
Mr Dunleavy said: “Our strategy, both at home and abroad, is delivering strong growth.”
He added that its studios had “achieved high utilisation” rates both for big-budget films and for TV.
“The company is well placed to meet the increasing demand for content both at its UK studios and abroad,” he added.
Pinewood Shepperton has been granted an extension by the UK Listing Authority to continue trading its shares on the main market until June 6, while it explores options including a potential move to AIM.
Following the Peel takeover, the company can no longer list its shares on the main market as less than 25% of them are freely available. Peel Group owns around 71% of Pinewood Shepperton’s shares following its £97m takeover bid last year. Its plan was to take the firm private, but Stockport-based jeweller Warren James Holdings also built a 27% stake in the company, which is enough to block any bid to de-list the company.
