Pinewood hit by £3m pull-out

The end of production for a "major film" is set to cost studio Pinewood Shepperton up to £3 million in lost revenues.

The firm saw shares drop 10 per cent as Pinewood said it would "prove challenging" to make-up the loss, as the Writers' Guild of America strike continues in the US.

The unknown film may have been affected by the protest as the script was reportedly unfinished, leaving producers with no choice but to stop shooting.

The studio declined to reveal the name of the movie or its producers, but it is believed to be a major blockbuster.

The studio - home to the recent Harry Potter production - confirmed the decision was taken before shooting began and said it was able to recoup some money under terms of the stage contract.

However, ancillary film revenues would be hit by £3 million, largely impacting 2008 results, it added.

The screenwriters have been on strike since November 4 over a royalty payment dispute.

It is hoped that talks between writers and their employers, scheduled for Monday, will bring an end to the action.

Pinewood's announcement is thought to be the first major film affected by the strike, with most movie houses largely able to rely on stockpiled scripts.

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