UK studio company Pinewood Shepperton has announced plans to enter into a joint venture with Morley Fund Management to form a partnership that will further develop Shepperton Studio. Pinewood had previously announced plans for the expansion and growth at both Pinewood and Shepperton, and this new partnership will enable the work on Shepperton to begin later this year.Morley, a division of Aviva, has paid $19.8m (£10.5m) in cash for its 50% stake in the Shepperton partnership, which Pinewood's equity contribution will match. Also, Morley will fund a long-term loan of $37.8m (£20m) to the partnership. 'This is a highly attractive structure for both the Company and its shareholders," said Pinewood CEO Ivan Dunleavy. "It provides us with significant new development funding for the Shepperton Studio and reduces development risk and our gearing from the outset. This new partnership will accelerate the pace of the development process at the Group."Pinewood purchased Shepperton in 2001, and the studio (located, like Pinewood, near London) has recently hosted film shoots including Kenneth Branagh's The Magic Flute and New Line's The Golden Compass. Also, Pinewood announced that its first-half profits have more than doubled. Operating profit, in the six months to June 30, rose to $6.8m (£3.6m) from $2.6m (£1.4m), on first-half turnover of $35.3m (£18.7m), up 41%, and net income of $2.7m (£1.42m) compared to $783,383 (£391,000). As widely reported, Pinewood Shepperton had suffered in 2005 with uncertainty over the changes in British film tax laws. Business picked up in 2006 with shoots including Casino Royale, Stardust, Children Of Men and forthcoming shoots for The Bourne Ultimatum and Tim Burton's Sweeney Todd. The cost of demolishing and rebuilding the 007 stage, after it was heavily damaged in a July fire, will be covered by insurance and won't impact on the company's full-year results. Rebuilding of the stage will start in several weeks. The company said that it expects the yearly results to be "satisfactory."