The UK's Pinewood Shepperton studios has recorded a 31% year-on-year increase in half-year pre-tax profitsto $6.7m ($3.8m).

Revenues rose 19% to $39.9m (£21.7m) with revenues from film up 20% to $23.8m (£13m).

The studios have hosted the 007 film Quantum Of Solace and other major shoots, including Richard Curtis's The Boat That Rocked.

Last year was a difficult year with the writers' strike leading to cancellations of shoots, a restrictive pound-dollar exchange rate and a new tax system.

But the business is now 'back on track' CEO Ivan Dunleavy told ScreenDaily.

This year, the market is more stable with a weaker pound and a settled tax regime which says Dunleavy is 'working as it was designed to.'

'The tax regime encourages confidence and that in turn brings sustainable growth.'

Thebig film revenues still come from studio shoots, which are more difficult to predict, given external factors such as international competition and exchange rates. But Dunleavy remains confident that the UK and its facilities remain attractive to Hollywood.

A major part of the business strategy has, however, been diversification, reducing reliance on a few big pictures.

Increased business from television and other media areas such as games have boosted the business.

These activities can cross-fertilise, suggests Dunleavy.

'The developments we have introduced are beneficial to all of our customers. Games, for example, have become much more sophisticated and in areas, such as sound, the quality is now incredible. Film has 100 years of experience in those areas so there's lots of overlaps.'

The company is also looking at future growth to bolster its position in the global market.

The ambitious 105 acre Project Pinewood development of new studio facilities, setsand housing is very much on course, says Dunleavy, with planning permission due to be submitted later this year after a public consultation.

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