Pinewood sets stage for growth

Pinewood plans to double the size of its flagship studio over the next decade, adding 10 large stages with supporting workshops, production offices and infrastructure. Management expect to complete the first of three phases before next summer.

Sales in the core media services division rose 14 per cent, reflecting buoyant demand from film producers for stage rental and services such as lighting and sound and picture editing. But TV revenues slid 6 per cent as certain shows were not recommissioned and a shortage of space forced management to turn down major BBC, ITV and Sky productions. More positively, losses at Pinewood's smaller film investment arm were almost entirely offset by tax relief.

The company's net debt ballooned by more than three-quarters to £72.5m, reflecting its £37m buyout of Shepperton Studios from joint-venture partner Aviva Investors. But the group remains flush: it recently raised £30m through a share placing and increased its banking facilities to £135m.

After hiking its forecasts, brokerage N+1 Singer expects EPS of 13.7p in the year to March 2016 (FY 2015: 13.5p).