PWS.L Regulatory News (PWS)

1 Apr 2005 07:01

Pinewood Shepperton plc01 April 2005 1st April 2005 PINEWOOD SHEPPERTON PLC PURCHASE OF BUSINESS AND ASSETS RELATING TO TEDDINGTON STUDIOS AND ACQUISITION OF THE STUDIO BROADCASTING COMPANY LIMITED Pinewood Shepperton plc today announces the acquisition of both the business andthe assets relating to Teddington Studios Limited (in administration) and theentire share capital of The Studio Broadcasting Company Limited ("SBC") for£2.7m. Teddington Studios is most well known as the former studios of Thames Televisionand has recently hosted shows such as The Office, My Hero and Harry Hill. SBC,which has not traded to date but owns certain assets relevant for the operationof Teddington Studios, will provide channel hosting services to severalsatellite and cable channels within the studios of Teddington. Pinewood Shepperton has acquired the assets, staff and name of TeddingtonStudios, as well as assuming the lease of the Teddington Studios site andcertain liabilities for a total cost of £2.6m. SBC has been acquired for a costof £0.1m. The acquisitions include fixed assets of £1.8m, of which £1.2m aresubject to finance leases. In addition, it is anticipated that Pinewood Shepperton will incurreorganisation and transaction costs of approximately £1.3m that are expected tobe expensed in 2005 as an exceptional item. The consideration for theacquisitions will be funded from Pinewood Shepperton's existing bank facilities. The unaudited net assets of Teddington Studios Limited for the year ended 30thApril 2004 were £1.6m (which included the assets now owned by SBC). Turnover was£8.3 million with an operating loss of £9,000. The turnover included contractsvalued at approximately £2.5m which have not been renewed. The acquisition represents a natural extension to Pinewood Shepperton's currenttelevision and sound services business, and we intend to apply our existingbusiness model to the acquisition. Ivan Dunleavy, Chief Executive of Pinewood Shepperton plc, said: "This is an exciting opportunity for Pinewood Shepperton and is in line with ourlong term strategy to diversify our revenue streams in our integrated mediabusinesses. Teddington Studios and SBC, combined with our existing business intelevision and sound services, significantly enhances our presence in themarketplace. We will be working closely with the management of TeddingtonStudios and SBC to maximise the benefit of our enlarged television and soundservices activities." For further information please contact: Pinewood Shepperton Ivan Dunleavy 01753 656732Brunswick Group LLP Simon Sporborg/ 020 7404 5959 James Olley This information is provided by RNS The company news service from the London Stock Exchange