The UK arm of Working Title, the production giant behind Lord of the Rings, Love Actually and British cult classics Hot Fuzz and Shaun of the Dead, has weathered a challenging year after being “significantly impacted” by the Hollywood writers strike, according to newly-filed documents.
The company, which is owned by Universal Studios, said production had been halted by five months of strikes that kicked off last July, dealing a blow to its new project pipeline.
The action saw almost 20,000 screenwriters and actors walkout in a row over issues ranging from pay to the concerns over how AI would impact job numbers in coming years.
The UK arm of Working Title released three new films in 2023 – romantic comedy What’s Love Got to Do With it, starring Lily James, martial arts action movie Polite Society and Genie, written by Richard Curtis.
During 2023 the company’s turnover increased to £13m, up from £11.4m in the year before.
Its pre-tax profit also rose slightly to £528,000 during the 12 months from £496,000 in 2022.
Despite seeing only moderate growth, Working Title created almost 300 new UK jobs, bringing its average monthly headcount to 5,910 from 5,645 in the year before.
Working Title suffers production delays
In a statement published to Companies House, Working Title said: “The company’s operations during 2023 were significantly impacted by the writers and screen actor’s strike which prevented projects from going into production.
“As a result, the company prioritised development to ensure that its slate was in a strong position for when the strikes ended, resulting in two film projects greenlit in the first quarter of 2024, with a further project expecting the green light.
“The company operates in an intensely competitive, consumer-driven and rapidly changing environment and competes with a growing number of companies that provide a broad range of communications products and services and entertainment, news and information products and services to consumers.
“Technological changes are further intensifying and complicating the competitive landscape for the company by challenging existing business models and affecting consumer behaviour.”
Despite dealing with production backlogs the production company said it was looking forward to a number of new releases over the next couple of years, including the latest addition to the Bridget Jones franchise Bridget Jones: Mad About the Boy.
UK film industry hit by Hollywood writers strike
Working Title’s UK arm isn’t the only company to be impacted by the strike.
In June Pinewood Group, which includes Pinewood Studios and Shepperton Studios, said its year to March 31, 2024, had been “challenging” as a result of the strikes in the US.
However bosses added that the group had “remained largely resilient to these market dynamics” as its turnover increased from £120.5m to £146.4m, although its pre-tax profits were cut from £44.2m to £25.3m.
Chief executive David Conway said: “It has been a challenging year across the industry as a result of the strike action in the US and the staggered restart in film and TV production as we moved into 2024.
“Nevertheless, it is reassuring that the underlying Pinewood business has remained largely resilient to these market dynamics, and the group’s growth projects have meant that we are today announcing strong year-on-year revenue and EBITDA growth.”