Intandem Films

Having cleared its debts, AIM-quoted film financing, sales and marketing company Intandem could be set to become more than a penny stock.

Intandem makes money by finding what it considers to be good scripts, and then helps to secure funding for prospective films, taking a proportion of profits if they are eventually made. Behind the adaptation of Toby Young’s book How to Lose Friends and Alienate People, the company has been making losses due to interest payments on a $9.6m loan taken out in 2006 from hedge fund Arrowhead to purchase a catalogue of films. However with the loan now paid off and given Intandem’s low operating costs, the years ahead could see substantive profits.

Headed by chartered accountant Gary Smith, the founder of Winchester Entertainment, Intandem has around 25 films at different stages of production, including thriller ‘Blown’ about the world of international espionage, and ‘Drivers ED’ a comedy about a driving instructor.

‘Distributors will soon need more films, something we feel we can capitalise on’, enthuses Smith, apocryphally noting that ‘while there have been people prophesising for years the end of the film and video industry, revenues have been up in the film business in the recession’.

Forecast to pare losses to £300,000 in the year to June just-ended, then make maiden profits of £500,000 in 2011, Intandem, with its low-cost business model and exciting development slate, offers enticing profits potential. Originally tipped by Growth Company Investor at a paltry 1.63p, Intandem shares have since risen 69% to 2.75p and it is worth adding to any positions at these lowly levels.