The UK's Pinewood SheppertonStudios warned on Monday that its first half results for this year would bedown year on year, citing a weak dollar and an unstable tax landscape in theUK.
The studio combine warnedthat the two factors had caused delays in the timing of some key productionsprovisionally booked at Pinewood Shepperton.
However, Pinewood Sheppertonwas boosted by last week's budget, when the Chancellor promised a replacementfor Section 42, which some had feared would be scrapped. The studios, whichlast year housed Batman Begins and Charlie And The Chocolate Factory,added that their customers could now begin to commit and called the outlook forthe second half of this year "encouraging".
"We look forward to thefuture with confidence," said Michael Grade, chairman.
For the year ended Dec 31,2004, operating profit rose 13% to £12.9m. Profit before tax rose to £6.4m,compared with £2.6m for the same period last year.