Shares in Pinewood Shepperton have dropped 20 per cent after the studio issued a profit warning.

The UK institution has been expanding recently, acquiring TeddingtonStudios two months ago. But it has been struggling to tie down the bigblockbuster movies on which it has built its business and reputation.

In April,the share price took a big tumble after Paramount's$120m superhero thriller Watchmen abandoned plans to shoot at Pinewood.

And the latest Bond looks set to shift to Prague'sBarrandov Studios having previously stuck loyally with the UK, and most oftenPinewood.

Doubts over the UK tax incentive structure and the exchangerate against the dollar have all created a difficult business environment.

The company said it expectsinterim operating profits to be a little below market estimates at £2m.

"It is proving more difficult to achieve the level ofconversion needed to meet market expectations for the full year ended 31December, 2005 and the Board now considers these are unlikely to be met," thecompany said in a statement.