Film studio losses fall 75%

Losses at the Windmill Lane Pictures studio narrowed significantly last year as depreciation costs fell and the company continued to look towards export markets for improved profitability.

The TV and film-editing studio, which has been involved in the post-production of Love/Hate and the award-winning documentary One Million Dubliners, in recent years saw losses decrease by almost 75% to €273,000 in 2013.

Gross profit, at just under €3m, remained relatively stable for the year, increasing by almost €70,000.

This modest increase coupled with declining administrative expenses helped the studio edge back towards break-even point.

The latest accounts filed with the Companies Office show that depreciation on buildings, infrastructure, and equipment — which the company has invested heavily in over the last number of years — amounted to €977,728, down from €1m in 2012.

This has resulted in a lesser need for capital expenditure which, in turn, will lead to further large-scale reductions in depreciation in future years. This will have a positive impact on profitability in the coming years, according to the firm’s annual report.

The company said that trading conditions in the Irish market continued to be extremely challenging during the year.

In addition, the shareholders report states “the company continued to commit resources and costs to developing new export markets that should greatly enhance the profitability of the company in the near to medium term”.

Windmill Lane Picture’s balance sheet was helped by its debtors, which owed a total of €1.73m at the end of 2013 as opposed to €1.2m the previous year, while the studio owed €1.4m to its creditors at the end of the financial year — a slight increase of €88,000.

The studio’s turnover improved slightly in the 12 months to €378,000 from €356,500.

Windmill’s back catalogue of TV advertisements includes campaigns on behalf of Eircom, Three, Guinness, Meteor, and AIB, among others.

Founded in the early 1980s as a commercial post-production house and music recording studio, and based on Windmill Lane in the Dublin Docklands, the facility shot to prominence thanks to its association to U2, with the band recording five albums at its original base.

In 2009, the studio moved to its current location at Herbert Place on the banks of the Grand Canal.

The company had net assets of €3.63m at the end of 2013.