Pinewood still growing as it mulls possible sale

The AIM-traded media company said that, since the publication of interim results on 1 December 2015, film revenues had benefited from robust growth in ancillary sales.

Pinewood's sound stages were also operating at high utilisation levels, the company confirmed, with Media Hub revenues also performing strongly as a result of high occupancy.

The company was continuing to develop its international revenues, with strong growth from its joint venture in Atlanta, Georgia, and Media Investment revenues also growing in the second half of the year.

"As we come close to the end of the financial year, the benefits of our long-term strategy for the business are again being realised", said Pinewood chief executive Ivan Dunleavy.

"The company continues to experience strong demand for its facilities and services as we look forward to the new financial year," he added.

The company said its expectations of performance for the full year were now higher than at the interim results in December, though it did not give any specific numbers.

Pinewood confirmed that Phase One of the Pinewood Studios Development Framework was on schedule and on budget for completion in June 2016. The project was adding five new large sound stages and additional facilities, totalling 300,000 square feet.

The board of Pinewood also revealed on Wednesday it was undergoing a strategic review of its capital base and structure.

It said the firm's shareholder base remained tightly held, even after the £30m placing last April, which was stifling liquidity in the shares and preventing the company from achieving its aim of a main market listing.

"We believe Pinewood has the potential to build on the strong performance of the last few years to grow further both in the UK and internationally", said Dunleavy.

"The board is now looking to identify the best ways to create the appropriate capital structure to allow the company to realise its goals in the best interests of shareholders," he added.

Pinewood's board had appointed Rothschild to assist with the strategic review of the overall capital base and structure, which could include a sale of the company.

The UK Takeover Panel granted Pinewood a dispensation from the Takeover Code requirements, so that any interested party would not be required to be publicly identified as a result of Wednesday's announcement, and would not be subject to the 28-day deadline for as long as it was participating in discussions.