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Following the success of How to Lose Friends and Alienate People – currently number one at the cinema box office – film production, sales and marketing outfit Intandem plans to launch a separate film investment fund.

About to embark on a fundraising roadshow, chief executive Gary Smith is confident of raising $50m (£28.5m) and hopes to raise even more for the fund, in part due to Intandem having the rights to an impressive portfolio of films slated for release in 2010.

Intandem makes its money through a set fee by raising money for executive production and also through international sales commissions. On the back of this, and with funding, Smith believes the company could be involved in around 30 films in the next five to six years.

Smith says: ‘This couldn’t be a better time to start a film investment fund. While everything else is falling, spending on films doesn't tend to go down during a recession. People will opt to see a film as a cheaper alternative, and it’s a good form of escapism.’

Since formation five years ago, the company has remained loss-making – first half pre-tax losses widened from £664,000 to £697,000 – which Smith attributes to the relatively long delay on returns from film projects. However, following its recent box office hit and strong slate of films of improving quality, Smith is reasonably confident about future prospects.

Forecasts in the market for June 2008 suggest losses of £1.3m from £2m turnover, with break-even on the cards for 2009 and profitability likely by 2010. Long term, the picture at Intandem looks quite compelling, although the shares remain for risk-lovers only.

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Intandem Films	AIM	£0.93m	1.12p	-0.12p
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Intandem Films			15/10/2008