Film company reports profit decline

Pinewood Shepperton, the owner of Pinewood Studios where James Bond is filmed, reported a drop in profit to £8.1 million from £9.1 million last year.

The decline in profitability was based on a lower turnover of £37.4 million, compared to 2006 results of £40.7 million.

Chairman Michael Grade said: "As anticipated, 2007 turned out to be a challenging year for Pinewood Shepperton.

"Delays to production starts and the Writers Guild of America strike, now resolved, impacted film revenues significantly."

Pinewood Shepperton's film revenues declined during 2007 to £19.5 million from £22.5 million in 2006, following delays to the start of production of a number of major films which had been expected to commence earlier in the year.

Changed taxation legislation for co-productions also affected investment in British films, as did a weak dollar.

Despite delays to production, television revenues increased to £12.1 million from £11.8 million last year.

Pinewood is optimistic in its outlook, and said expected film revenues are showing some modest improvement, while the level of television bookings and enquiries indicate stronger demand year on year.

However, the company warned negotiations have yet to commence with the Screen Actors Guild, which may lead to a further industrial action in the US.

Major productions using Pinewood's facilities during the year included: Sweeney Todd (Warner Bros), Inkheart (New Line), Bourne Ultimatum (Universal), His Dark Materials: The Golden Compass (New Line) and Mamma Mia (Universal).

The latest Bond production, Quantum of Solace (Sony) and The Wolfman (Universal) commenced production during the latter part of 2007 and will continue during 2008, Pinewood said.