PWS.L Regulatory News (PWS)

13 Sep 2006 07:01

Pinewood Shepperton plc13 September 2006 Pinewood Shepperton plc Interim Results for the Six Months Ended 30 June 2006 Highlights •Turnover of £18.7m (2005: £13.3m) up 41%. •Operating profit before exceptional administrative expenses £3.6m (2005: £1.9m) •Operating profit up to £3.6m (2005: £1.4m) •Diluted earnings per share of 3.1p (2005: loss 0.2p) •Interim dividend of 0.9p (2005: Nil) •Major film productions once again committing to filming in the UK •Continued enhancement of studio facilities •Executed formal planning agreements for Pinewood Studios and Shepperton Studios Commenting on today's results, Ivan Dunleavy, Chief Executive of PinewoodShepperton plc, said: "With the passing of the legislation to implement the new UK film tax relief andclarity over UK film fiscal policy, we expect to see a return to a more normalfilm production environment by the end of 2006 with larger film productions onceagain committing to filming in the UK for the future. In television our marketshare has risen now that Teddington is fully embedded within our business andour media park income remains robust. We therefore look forward to a satisfactory outcome for the full year and remainconfident of delivering shareholder value in the medium to long term." A presentation of the results of the Company will be available on PinewoodShepperton's website: www.pinewoodgroup.com from 12.00pm today. Enquires: Pinewood Shepperton plcIvan Dunleavy - Chief Executive 01753 656 183 Brunswick Group LLPTom Buchanan/James Olley 020 7404 5959 Chief Executive's Review Trading Film During the six months ended 30 June 2006 film revenues were £9.9m (2005: £7.3m).The same period in 2005 was adversely affected by the impact of the transitionin film fiscal policy. This first half of 2006 benefited from a number of filmproductions, including Casino Royale (Sony), Stardust (Paramount), Atonement(Working Title), Children of Men (Universal), Eragon (20th Century Fox) and TheGolden Age (Universal) among others. A number of the larger movie studios and more established production companieshave anticipated the retrospective implementation of the new UK fiscal policyfrom 01 April 2006. These larger producers are generally not reliant ondiscounting in advance the film production tax credit to finance theirproductions. Consequently, as a result of the clarification of the Government'sposition on the tax issues, the UK market benefited from an upturn in major filmproduction during the first half of 2006. Smaller production companiesfrequently depend (as part of their production financing) on discounting of thefilm production tax benefit. Thus far they have been unable to do so atcommercially attractive rates. We expect that, as understanding of new UK filmtax relief improves, such smaller budget films will also begin to benefit fromthe improved levels of relief. International competition from studios and locations for film production werebenefiting from the 'tax hiatus' during most of 2005 and into 2006. However, theUK's continuing reputation for efficiency and the uniqueness of its filmingassets should ensure that, with the uncertainty removed, there has been noresulting longer term structural erosion of the UK's popularity as a destinationfor international film production. There is normally a lag of around six months from the completion of principalphotography to the start of audio post production. The UK's film audio postproduction market has therefore inevitably been adversely affected by the lackof film productions during the majority of 2005. The film audio post productionmarket continues to be affected in the short term. However during the period,our facility dedicated to foreign language sound mixing maintained normal levelsof activity. Productions that were completed in audio post production includedThe Wind that Shakes the Barley, Goal II, Eragon, Wild Romance and Stormbreakeramong others. There are encouraging signs of improved activity for 2007 as UKproduction increases. U Stage, our specialist underwater stage, was used extensively during the firsthalf of 2006 by productions in the studios and is proving to be an attractiveand sought after facility, enhancing the reputation of the studios. We areachieving our financial targets for this investment. Our programme of refurbishment at Shepperton Studios continued with externalimprovement to C Stage at Shepperton. We also increased our workshop areas atPinewood and Shepperton Studios to meet demand. Following the necessary works toimprove road access we have now opened the backlot at Shepperton Studios forcontinuous exterior film shooting. We are in the process of demolishing older workshops and buildings that will bereplaced under our studio enhancement plans. We are currently preparing for thecommencement of the I Block project at Shepperton Studios, which includes 61,000sq. ft. (gross) of facilities and anticipate a start on site for thisdevelopment by the end of 2006. The new I Block facility is a combination ofworkshops, production offices and tenanted offices and is scheduled forcompletion at the end of 2007. Television Television revenues for the six month period were £5.5m (2005: £2.6m). Theincrease over 2005 revenues predominantly reflects a full six months fromTeddington Studios, compared to only three months during 2005. The UK television market has been characterised during the first six months of2006 by major broadcasters' strategic statements which include buying programmesat much lower costs and identifying preferred suppliers to enable lower costprogrammes to be produced. Pinewood Shepperton is well placed to respond to suchinitiatives given the scale of its facilities, unrivalled in the independentmarket. We continue to improve margins at Teddington studios to match thosecomparable to Pinewood. Following the acquisition of Teddington Studios we have increased our televisioncustomer base with a greater number of productions utilising the electronicfacilities at both Teddington Studios and Pinewood Studios. The effect of thetelevision advertising market slow down has adversely affected certain high costprogramme productions but major broadcasters are required to create moreoriginal programming from independent and regional production companies. Again,Pinewood Shepperton is ideally suited to offer competitive studio basedproduction services. During the first six months at Pinewood, our digital television studios hostedThe Weakest Link, My Family, Carol Vorderman's Big Brain Game, Test the Nation,Sport Relief - Get Sub'd and a number of other productions. At TeddingtonStudios, productions during the six months included the conclusion of the Trishaday time shows, Brown Eyed Boy, Harry Hill's TV Burp, Green Green Grass, NotGoing Out, Bremner, Bird and Fortune, Let Me Entertain You, Whatever and others. At Teddington Studios, we are upgrading and enhancing the offering to ourcustomers and have commenced a refurbishment program which, with new marketinginitiatives, will show benefits to margins for the future. We also have beenpiloting high definition programmes for a number of television productioncompanies and are now evaluating further investment in high definitionfacilities at both Teddington and Pinewood. Our decision to target TV broadcasters to use our film assets has paid off andour market share for filmed television has grown appreciably with such titles asThe Amazing Mrs Pritchard, Extras, Prime Evil, Live Girls and others. In our television audio post production business located at Pinewood Studios, wecontinue to make progress in attracting new productions and during the sixmonths we mixed Rosemary and Thyme, Waking the Dead and Blips among others. Media Park Media Park income for the six-month period was £3.3m (2005: £3.4m). Demand fromoccupiers remained buoyant resulting in relatively high occupancy rates. The property letting market is experiencing an increase in tenant demand fromthe growing technology, media and television sector. The Thames Valley and theM25 property markets continue to improve. Pinewood Shepperton's long-term strategy of enhancing its freehold assets torespond to these demands from the market is progressing well. In March 2006 we executed the formal planning agreements ("S106 Agreements")with the respective planning authorities to enable our studio enhancement plansto be realised in the future. In addition, at Shepperton Studios, we have nowformally implemented the original Section 106 planning agreement to enable useof the backlot for outdoor film sets and filming activity. Current Trading and Outlook We expect legislative changes to film fiscal policy to be embraced by filmproducers locally and internationally. The focus of television broadcasters oncontent bodes well for the long term and we continue to enhance our studios inline with stated strategies. The demand for our media services has recovered strongly in film. We are seeing evidence of larger film productions once again committing tofuture film production in the UK, currently notwithstanding exchange rates. Intelevision our market share continues to rise and our media park income remainsrobust. Recent increases in energy prices are being monitored by the Group and we areactively assessing what measures can be introduced to improve energy usagethroughout our sites. Work has commenced on rebuilding a new 007 Stage, following its sad destructionthrough fire. As stated at the time, we do not expect any material adversefinancial impact from this event. The Board's outlook for revenues for the full year remain in line with marketexpectations. Separately we have announced today that we have entered into a joint venturewith Morley Fund Management to develop Shepperton Studios. Financial Review Profit Performance The gross margin was 38.0% (2005: 32.3%) with operating margin of 19.3% (2005:14.1%). The increase in gross margin and operating margin, compared to the firsthalf of 2005 results mainly from the recovery in turnover. Turnover was up 40.5%for the first six months of the year. Film turnover showed an increase over 2005of 35.9%. Television revenues for the first half of 2006 include a full sixmonths of trading of Teddington Studios, compared to only three months in thesame period for 2005. Earnings Per Share Earnings per share for the six months to 30 June 2006 were 3.1p compared to aloss for the same period in 2005 of 0.2p. The diluted and weighted averagenumber of shares issued throughout the period was 45.8 million ordinary shares. Operating Cash Flow and Net Debt Cash flow generated from operational activities after borrowing costs andtaxation payments for the six months to the 30 June 2006 was £2.2m (2005:£3.3m). The reduction is mainly attributable to the timing of interest paymentsin the respective periods. Net debt at the 30 June 2006 was £41.4m (2005: £44.6m), primarily reflectingimproved trading and to a lesser extent, timing differences in capitalexpenditure. Capital Expenditure Capital expenditure for the six months to the 30 June 2006 was £1.8m (2005:£4.0m). During the period there were a number of major projects completedincluding the refurbishment of A and B Stages at Shepperton Studios,construction of new workshops at Pinewood and Shepperton Studios, additionalbroadband installation, new channel hosting studios at Teddington Studios inaddition to usual life cycle capital expenditure. As already indicated the Boardhas under review the commencement of the I Block project towards the fourthquarter of 2006, for which the main expenditure will not fall until 2007. During the period we implemented the Section 106 planning agreement for the useof the backlot at Shepperton Studios which entailed building a new road entranceand roundabout to access the site plus a range of other planning improvements. Interest Interest finance costs for the six months to the 30 June 2006 were £1.5m (2005:£1.5m). Interest is covered 2.3 times by operating profit (2005: 0.9 times).£20m of the Company's net debt to the 30 June 2006 is the subject of a five yearinterest rate SWAP entered into in May 2004 at a fixed rate of 5.525% plus amargin. The remaining drawn debt is a floating rate of LIBOR plus a margin. Taxation Tax charged for the six months to the 30 June 2006 was £654K at an effectiverate of 31.5% which allows for the impact of certain disallowable expenditure. Dividend The Board has announced an interim dividend for 2006 of 0.9p per share, (2005: £nil) which reflects the Board's view that film services are trading at morenormal levels and that cash flows should continue to reflect this trend. Consolidated income statementfor the six months ended 30 June 2006 Six months Year Six months ended ended ended 30 June 31 December 30 June 2006 2005 2005 Unaudited Unaudited Unaudited Notes £000 £000 £000RevenueRendering of services 3 18,729 33,387 13,328 Cost of sales (11,611) (21,806) (9,029) -------- --------- --------Gross profit 7,118 11,581 4,299 -------- --------- -------- Selling and distribution expenses (879) (2,260) (751) Exceptional administrative expenses 4 - (1,607) (491)Other administrative expenses (2,621) (3,995) (1,674) -------- --------- --------Total administrative expenses (2,621) (5,602) (2,165)------------------------------ -------- --------- --------Operating profit before exceptional administrative expenses 3,618 5,326 1,874------------------------------ -------- --------- -------- Operating profit 3,618 3,719 1,383 Finance costs (1,542) (3,148) (1,491)Finance income 1 - - -------- --------- --------Profit/(loss) before tax 2,077 571 (108)Corporation tax expense (654) (180) (6) -------- --------- -------- Profit/(loss) for the period 1,423 391 (114) ======== ========= ========Attributable to: Equity holders of the parent 1,423 391 (114) ======== ========= ========Earnings per share- basic and diluted for result 5 3.1p 0.9p (0.2p) for the period Consolidated balance sheetat 30 June 2006 As at As at As at 30 June 31 December 30 June 2006 as 2005 as 2005 as restated restated restated Unaudited Unaudited Unaudited £000 £000 £000ASSETSNon-current assetsProperty, plant and equipment 6 105,028 104,835 105,361Intangible assets 6 10,848 10,848 10,481 -------- --------- ------- 115,876 115,683 115,842 -------- --------- -------Current assetsInventories 343 303 377Trade and other receivables 3,652 3,174 3,591Prepayments 1,336 1,314 423Cash 587 1,276 - -------- --------- ------- 5,918 6,067 4,391 -------- --------- -------TOTAL ASSETS 121,794 121,750 120,233 ======== ========= =======EQUITY AND LIABILITIESEquity attributable to equityholders of parentShare capital 7 4,582 4,581 4,581Share premium 7 43,478 43,469 43,269Capital redemption reserve 135 135 135Merger reserve 348 348 348Fair value of cash flow hedge reserve (147) (400) (557)Retained earnings 5,323 3,880 3,347 -------- --------- -------Total equity 53,719 52,013 51,123 -------- --------- ------- Non-current liabilitiesInterest-bearing loans and borrowings 41,795 43,100 43,971Deferred tax liabilities 15,145 15,035 14,768 -------- --------- ------- 56,940 58,135 58,739 -------- --------- ------- Current liabilitiesTrade and other payables 10,415 10,849 9,113Interest-bearing loans and borrowings 174 300 606Tax payable 546 453 652 -------- --------- ------- 11,135 11,602 10,371 -------- --------- -------TOTAL LIABILITIES 68,075 69,737 69,110 -------- --------- ------- -------- --------- -------TOTAL EQUITY AND LIABILITIES 121,794 121,750 120,233 ======== ========= ======= Consolidated cash flow statementFor the six months ended 30 June 2006 As at As at As at 30 June 31 December 30 June 2006 as 2005 as 2005 as restated restated restated Unaudited Unaudited Unaudited £000 £000 £000Cash flow from operating activitiesReceipts from customers 19,442 35,111 15,112Payments to suppliers and employees (14,771) (24,570) (10,607)Finance costs (1,906) (2,583) (745)Corporation tax paid (560) (630) (462) --------- --------- --------Net cash flow from operating activities 2,205 7,328 3,298 --------- --------- --------Cash flow used in investing activitiesInterest received 1 - -Purchase of property, plant and equipment (1,762) (5,364) (4,008)Acquisition of subsidiary undertaking - (956) (611) --------- --------- --------Net cash flow used in investing activities (1,761) (6,320) (4,619) --------- --------- -------- Cash flow(used in)/from financing activitiesProceeds from the issue of shares 10 - -Payment of finance lease liabilities (143) (891) (168)Dividends - (1,237) (1,237)Proceeds from borrowings - 4,000 4,000Repayment of borrowings (1,000) - - --------- --------- --------Net cash flow (used in)/from financing activities (1,133) 1,872 2,595 --------- --------- --------Net (decrease)/increase in cash (689) 2,880 1,274Cash at the start of the period 1,276 (1,604) (1,604) --------- --------- --------Cash at the end of the period 587 1,276 (330) ========= ========= ======== Consolidated statement of changes in equityFrom 1 January 2006 to 30 June 2006 Fair value of cash flow Capital Share Share Retained Merger hedge redemption Total capital premium earnings reserve reserve reserve equity £000 £000 £000 £000 £000 £000 £000 At 1 January 2006 4,581 43,469 3,880 348 (400) 135 52,013 Profit for the period - - 1,423 - - - 1,423Transfers to theincome statementOn cash flow hedges - - - - 90 - 90Income and expenserecogniseddirectly in equityProfit on cash flow hedges takento equity - - - - 272 - 272Tax on items taken directly to or transferred fromequity - - - - (109) - (109)-------------- ------ ------- ------- ------- ------ -------- ------Total recognised income and expense for the period - - 1,423 - 253 - 1,676-------------- ------ ------- ------- ------- ------ -------- ------ New shares issued 1 9 - - - - 10Share based payment - - 20 - - - 20 ------ ------- ------- ------- ------ -------- ------At 30 June 2006 4,582 43,478 5,323 348 (147) 135 53,719 ====== ======= ======= ======= ====== ======== ====== Consolidated statement of changes in equityfrom 1 January 2005 to 31 December 2005 Fair value of cash flow Capital Share Share Retained Merger hedge redemption Total capital premium earnings reserve reserve reserve equity £000 £000 £000 £000 £000 £000 £000 At 1 January 2005 4,581 43,269 4,666 348 (381) 135 52,618 Loss for the period - - (114) - - - (114)Transfers to theincome statementOn cash flow hedges - - - - 59 - 59Income andexpenserecogniseddirectly inequityLoss on cash flow hedges taken toequity - - - - (310) - (310)Tax on items taken directly to or transferredfrom equity - - - - 75 - 75-------------- ------ ------- ------- ------- ------ -------- ------Total recognised income and expense for theperiod - - (114) - (176) - (290)-------------- ------ ------- ------- ------- ------ -------- ------ Equity dividends - - (1,237) - - - (1,237)Share based payment - - 32 - - - 32 ------ ------- ------- ------- ------ -------- ------At 30 June 2005 4,581 43,269 3,347 348 (557) 135 51,123Profit for the period - - 505 - - - 505Transfers to theincome statementOn cash flow hedges - - - - 84 - 84Income and expenserecognised directlyin equityProfit on cash flow hedges taken to equity - - - - 140 - 140Tax on items taken directly to or transferred from equity - - - - (67) - (67)-------------- ------ ------- ------- ------- ------ ------- ------Total recognised income and expense for the period - - 505 - 157 - 662-------------- ------ ------- ------- ------- ------ ------- ------ Share issue costs - 200 - - - - 200Share based payment - - 28 - - - 28 ------ ------- ------- ------- ------ ------- ------At 31 December 2005 4,581 43,469 3,880 348 (400) 135 52,013 ====== ======= ======= ======= ====== ======= ====== Independent Review Report INDEPENDENT REVIEW REPORT TOPINEWOOD SHEPPERTON plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2006 which comprises the Consolidated IncomeStatement, Consolidated Balance Sheet, Consolidated Cash Flow Statement,Consolidated Statement of Changes in Equity, and the related notes 1 to 9. Wehave read the other information contained in the interim report and consideredwhether it contains any apparent misstatements or material inconsistencies withthe financial information. This report is made solely to the Company in accordance with guidance containedin Bulletin 1999/4 'Review of interim financial information' issued by theAuditing Practices Board. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the company, for our work,for this report, or for the conclusions we have formed. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the Directors. The Directorsare responsible for preparing the interim report in accordance with the ListingRules of the Financial Services Authority which require that the accountingpolicies and presentation applied to the interim figures should be consistentwith those applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4'Review of interim financial information' issued by the Auditing Practices Boardfor use in the United Kingdom. A review consists principally of making enquiriesof group management and applying analytical procedures to the financialinformation and underlying financial data, and based thereon, assessing whetherthe accounting policies and presentation have been consistently applied, unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance withInternational Standards on Auditing (UK and Ireland) and therefore provides alower level of assurance than an audit. Accordingly we do not express an auditopinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2006. Ernst & Young LLPLondon Notes : • The maintenance and integrity of the Pinewood Shepprton plc web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial information since it was initially presented on the web site. • Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.Corporate information Notes to the consolidated financial statements at 30th June 2006 1. Corporate Information Pinewood Shepperton plc is a company incorporated and domiciled in the UnitedKingdom whose shares are publicly traded. The interim consolidated financialstatements of the Group for the six months ended 30 June 2006 were authorisedfor issue in accordance with a resolution of the Directors on 12 September 2006. 2. Basis of preparation and accounting policies The interim consolidated financial statements for the six months ended 30 June2006 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim consolidated financial statements do not include all the informationand disclosures required in the annual financial statements as defined insection 240 of the Companies Act 1985, and should be read in conjunction withthe Group's annual financial statements as at 31 December 2005. The financialstatements for the year ended 31 December 2005, upon which the auditors issuedan unqualified opinion, have been delivered to the Registrar of Companies. Significant accounting policies The accounting policies adopted in the preparation of the interim consolidatedfinancial statements are consistent with those followed in the preparation ofthe Group's annual financial statements for the year ended 31 December 2005,except for the adoption of amendments mandatory for annual periods beginning onor after 1 January 2006. The adoption of these amendments did not affect theGroup results of operations or financial position. Restatement of prior year comparatives During the year the Group has reviewed the fair value of assets acquired on theacquisition of Pinewood Studios Limited in 2000 and has determined that £4.0m ofintangible assets previously generated on the acquisition should moreappropriately be allocated to property, plant and equipment. The financialstatements for the periods ending 30 June 2005 and 31 December 2005 have beenrestated to properly reflect the fair value of these assets. 3. Revenue analysis Total £000Six months ended 30 June 2006Film 9,947Television 5,453Media Park income 3,329 ------- 18,729 ------- Total £000Year ended 31 December 2005Film 17,960Television 8,946Media Park income 6,481 ------- 33,387 ------- Total £000Six months ended 30 June 2005Film 7,321Television 2,649Media Park income 3,358 ------- 13,328 ------- 4. Exceptional administrative expenses Six months Year Six months ended ended ended 30 June 31 December 30 June 2006 2005 2005 Unaudited Unaudited Unaudited £000 £000 £000 Exceptional costs in relation to the - 1,027 491acquisition of Teddington StudiosGroup reorganisation - 580 - -------- --------- -------- - 1,607 491 -------- --------- -------- Acquisition of Teddington Studios During the year ended 31 December 2005, the Group purchased the trade andcertain of the assets and liabilities of Teddington Studios Limited (inadministration), and acquired 100% of the share capital of The StudioBroadcasting Company Limited. Exceptional costs incurred in the year relate tothe reorganisation and integration of the acquired operations, comprising£778,000 of redundancy related costs, legal and professional fees of £127,000and £122,000 of operational continuity costs. The Group does not anticipateincurring further exceptional costs in relation to the acquisition of TeddingtonStudios. Group reorganisation During the year ended 31 December 2005, £580,000 of redundancy and other costswere incurred as a result of the implementation of a Group reorganisationprogramme to enhance organisational structure and efficiency. 5. Earnings per ordinary share and dividend Earnings per ordinary share Basic earnings per share are calculated by dividing profit/(loss) for the periodattributable to ordinary equity holders of the company by the weighted averagenumber of ordinary shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing the profit/(loss)attributable to ordinary shareholders by the weighted average number of ordinaryshares outstanding during the period, adjusted for the effects of dilutiveoptions. The following reflects the income and share data used in the basic and dilutedearnings per share computations: Six months Year Six months ended ended ended 30 June 31 December 30 June 2006 2005 2005 Unaudited Unaudited Unaudited £000 £000 £000Profit/(loss) attributable to equity holders of the company 1,423 391 (114) -------- --------- -------- Thousands Thousands ThousandsBasic number of shares at start of the year 45,813 45,813 45,813Number of shares issued via Sharesave scheme 6 - - -------- --------- --------Weighted number of shares 45,819 45,813 45,813 -------- --------- -------- Six months Year Six months ended ended ended 30 June 31 December 30 June 2006 2005 2005 Unaudited Unaudited Unaudited £000 £000 £000 Final dividend for 2004 paid at 2.7p per ordinary share - 1,237 1,237 -------- --------- -------- Notes to the consolidated financial statementsat 30th June 2006 6. Non-current assets During the year the Group has reviewed the fair value of assets acquired on theacquisition of Pinewood Studios Limited in 2000 and has determined that £4.0m ofintangible assets previously generated on the acquisition should moreappropriately be allocated to property, plant and equipment. 7. Share capital and reserves Issuance of shares On 30 January 2006 and on 24 April 2006, the Company issued 2,783 and 2,786shares respectively in respect of options exercised under the Company SharesaveScheme, increasing share capital by £557 and share premium by £8,510. 8. Events after the balance sheet date On 30 July 2006 the 007 stage at Pinewood Studios was destroyed by fire. The Group does not anticipate any material adverse financial effect as a resultof this incident. 9. Related party disclosures The consolidated financial statements include the financial statements ofPinewood Shepperton plc and the subsidiaries listed in the following table. Country of incorporationPinewood Studios Limited United KingdomShepperton Studios Limited United KingdomPinewood-Shepperton Studios Limited United KingdomStudiolink Limited United KingdomTeddington Studios Limited United KingdomThe Studio Broadcasting Company Limited United Kingdom Pinewood Shepperton plc is the ultimate parent entity and a 100% equity interestwas held in all subsidiaries as at 30 June 2005, 31 December 2005 and 30 June2006. During the year the Group entered into transactions with the following relatedparties, involving the utilisation of media facilities at normal market ratesand settlement terms. Sales to Amounts related owed by party related £000 party £000Entity with which Michael Grade is associated:Six months ended/at 30 June 2006 1,080 92BBC ======= ======= Year ended/at 31 December 2005 1,805 38BBC ======= ======= Six months ended/at 30 June 2005 1,260 163BBC ======= ======= This information is provided by RNS The company news service from the London Stock Exchange