UK studio Pinewood Shepperton saw a 26% fall in pre-tax profits in 2007, to $10.58m (£5.3m).

The studio has recently hosted the latest Bond film, Quantum Of Solace, Sweeney Todd and The Wolfman, but lost out on another planned major shoot - said to be Angels & Demons -- due to the US writers strike.

Ron Howard's Da Vinci Code followup is now set to shoot mostly in Los Angeles, with establishing shots in Europe (including Rome) scheduled to start shooting in June.

'Whilst we had a contract for a major production, they weren't able to start that production as anticipated, but honoured the terms of their contract. But the cancellation did affect revenues,' chief executive Ivan Dunleavy said. Pinewood had warned about the shoot cancellation in November and noted that the company would continue to try to strengthen its non-film business.

Dunleavy said: 'During the past 12 months we have continued to make excellent progress in implementing our strategic aim of diversifying our business and delivering greater consistency of revenue streams.' He pointed to a push for growth in TV projects and property. (The company also plans to build on plans for the new live-work community Project Pinewood.)

Film revenues droppted to $38.9m (£19.5m) in 2007 from $44.9m (£22.5m) in 2006. Pinewood pointed to a UK-wide downturn caused by the weak US dollar, tax break crackdown on co-productions and the writers' strike.

Looking ahead to 2008 results, the company said: 'Expected film revenues are showing some modest improvement. The level of television bookings and enquiries indicate stronger demand year on year and media park revenues progress steadily. In the USA, the settlement of the Writers Guild strike is being seen as a sign that the potential Screen Actors Guild dispute may be averted, although, as previously stated, negotiations have yet to commence. The Board views the Company's prospects with confidence.'