Pinewood's FY revenue rises as it says it won't be affected by Brexit

11th Jul 2016 12:20

(ShareCast News) - Film and TV studio Pinewood, home to Bond's Spectre and Star Wars: The Force Awakens, reported an increase in full year revenue as it completed part of is development programme and said it does not expect to be affected by Brexit.Group revenue increased 10.9% to £83.2m for the year ending 31 March 2016 and normalised earnings per share increased 31.1% to 17.7p.Media Services grew by 16.4% to £66.6m for the year including £900,000 of intersegment revenue. Intersegment revenues relate to revenue generated from the utilisation of the company's core services by the group's wholly-owned film production companies.The company said that phase one of its Pinewood Studios development framework (PSDF) expansion was completed on 30 June.The company said that as most of its customers are international therefore the weak pound should benefit the company. Since the European Union (EU) referendum Brexit result the value of the pound has plummeted, which should benefit exports.Chief executive Ivan Dunleavy said: "The result of the UK's referendum on membership of the EU is now known. In the context of our business, the decline in the sterling exchange rate is undoubtedly positive for our international customers. We will continue to monitor sentiment around the issue going forward."The company is also pleased to confirm that the PSDF phase one became fully operational on 30 June 2016 adding five stages and significant capacity to our existing world class offer. The Company is delighted that the first production to utilise the new facilities is Film Stars Don't Die In Liverpool produced by Barbara Broccoli who has a long association with the Pinewood group through the Bond franchise."We have, as expected, already signed a contract for an additional major film production which will fully utilise these new facilities from August 2016. This financial year has started strongly with good visibility for the balance of 2016."The PSDF added a total of 1m sq.ft. of new facilities including 10 large stages with supporting workshops, production offices and infrastructure. Phase one of the scheme incorporates five sound stages totalling 150,000 sq.ft., 140,000 sq.ft. of workshops across 10 buildings and office buildings totalling 31,000 sq.ft.Normalised profit after tax increased 51.6% to £10.1m and group operating profit increased 136.3% to £13.6m. Net debt also increased by 1.2% to £72.8m.The company said that demand for its facilities throughout the year was strong, as stage occupancy was 90%, however ongoing film demand has limited TV's access to the film stages.The company said that its digital content services, delivered record revenues of £9.4m, up from £7.2m last year, through growing its secure management of data generated from film cameras and its partnership with Disney. Pinewood said it renewed its contract to manage Disney's international release versions for a further five years.Pinewood said despite strong film demand limiting opportunity, TV had a "resilient" year as it generated revenues of £5.2m, down from £5.8m in2015.Film revenues for the year were up 20.6% to £53m, and the company said it was due to high utilisation of stage and ancillary studio space and a higher level of international activity.Pinewood is to host to 247 tenant companies across its media hub facilities and tenant occupancy stands at 98% with over 90% of companies renewing leases that were due to expire during the year.International revenues for the year included within Film were £3.5m up slightly from £3.1m in 2015 from sales and marketing agreements in Toronto, Malaysia and Dominican Republic, and a consultancy services provided in China.Shares in Pinewood rose 5.07% to 570p at 1334 BST.