Pinewood Studios May Be Sold To 'Maximise Value'

The owner of Pinewood Studios, best known for being home to the James Bond movies, could be sold as the company looks to "maximise value" for investors.

Pinewood Group (LSE: 1857523.L - news) said it had appointed advisers to lead a strategic review of its capital base and structure.

The company explained that a successful share placing last year to raise proceeds for its expansion had failed to gain enough new investors and diversify its shareholder base, stifling its ambitions.

It made the announcement at the same time as raising its annual profits guidance, saying expectations for the year to 31 March had been boosted by stronger revenues across the board since the release of its half-year results in December.

Pinewood, which trades its shares on the junior AIM market, said that because its shareholder register was "tightly held" its ambition for a main market listing was being held back.

It confirmed its options included a possible sale of the business, which includes Pinewood Studios in Buckinghamshire, as well as Shepperton Studios and Pinewood Studio Wales.

It also has an international network of studios in countries including Canada and the Dominican Republic.

Its share placing last year raised £30m for phase one of its Pinewood Studios Development Framework, aimed at adding 300,000 square feet of new facilities including five new sound stages.

Expansion at Pinewood in Buckinghamshire has proved problematic in the past because of local opposition.

But it has continued to be at the forefront of the TV and film businesses, recently hosting production of Spectre and Star Wars: The Force Awakens.

Chief executive Ivan Dunleavy said: "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.

"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 (Other OTC: UBGXF - news) ."