Treasury Minister Eddie Teare MHK might now be regretting having sold half of the Isle of Man’s stake in Pinewood Studios.
In April last year he made a {http://www.iomtoday.co.im/news/isle-of-man-news/pinewood-shares-sold-at-profit-1-7187344|£2.5m profit} after offloading 50 per cent of the island’s holding at £3.75 a share.
This week it was announced that Pinewood’s profits had soared and, as the Manx Independent went to press, shares were trading at £5.65. The good news is that the Isle of Man Government still owns 4.99 per cent of Pinewood Studios.
The decision to invest {http://www.iomtoday.co.im/news/isle-of-man-news/isle-of-man-finally-invests-in-pinewood-shepperton-1-4994349|£12m in Pinewood Studios} in 2012 sparked a lot of criticism at the time, with Michael MHK Alfred Cannan describing it as ‘as an unsuitable use of the reserve funds’.
Peter Karran MHK was sacked as Minister of Education for his {http://www.iomtoday.co.im/news/isle-of-man-news/peter-karran-sacked-from-role-as-education-minister-1-4662841|opposition to the Pinewood deal} which included an arrangement for Pinewood to manage of the island’s media development fund.
Pinewood Group, owner of the UK’s Pinewood and Shepperton Studios, reported strong growth for the year ended March 31.
Europe’s largest provider of stage and studio space, which also has bases in Canada, Malaysia, the Dominican Republic and Atlanta, increased revenues 10.9 per cent to £83.2m and saw operating profit jump 136.3 per cent to £13.6m . So-called ‘normalised’ profit after tax was £10.1m, a rise of 51.6 per cent.
The increases come as Pinewood continues to host major productions which in the last year have included Spectre, Star Wars: The Force Awakens and Rogue One: A Star Wars Story. Disney is a big client of Pinewood while Marvel often shoots at Shepperton and in Atlanta.
With the Brexit vote having sent the pound plummeting, this is good news for Hollywood studios looking to shoot in the UK.
Pinewood Group chief executive officer Ivan Dunleavy said: ‘In the context of our business, the decline in the pound sterling exchange rate is undoubtedly positive for our international customers. We will continue to monitor sentiment around the issue going forward.’
The pound is now below $1.30 compared with the level of $1.50 it hit just before the referendum on the UK’s membership of the EU.
In February, Pinewood said it was exploring strategic alternatives, i.e. a potential sale, ‘to maximise value for the company’s shareholders and to build on Pinewood’s successes to date.’
This week, the group said the strategic review was continuing.
{http://www.iomtoday.co.im/news/isle-of-man-news/manx-film-stalwart-steve-christian-quits-pinewood-1-7235329|Steve Christian leaves Pinewood}
{http://www.iomtoday.co.im/news/isle-of-man-news/lib-van-sale-of-pinewood-shares-is-good-news-but-not-that-good-1-7197022|Liberal Vannin Party’s questions about Pinewood}