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Independent theatre producer Josephine Buchan gives a brief pitch explaining why now's the time for a Dusty Springfield musical before Lucy Williamson performs "You Don't Have to Say You Love Me" accompanied by musical arranger Mike Moran on the piano.

In her pitch Josephine says they're capitalising at £1 million and she's offering the Dragons a quarter of the show for £250,000. However she also mentions a 60:40 split but ups this to a more favourable 80:20. Duncan is the first Dragon to speak, questioning Josephine's complex figures breakdown. Josephine explains that the Dragons will receive 80% of 25% of net profit which Duncan calls a "theatrical way of calculating a return."

Quizzed about where the rest of the money will come from Josephine tells the Dragons she hopes to secure half the budget from a production company in LA and must find the last quarter elsewhere. Deborah wants to know what risks are associated with investing in a theatrical production, specifically how much of the budget is spent before doors open and Josephine reveals that it totals half of the £1 million budget.

James wants to dig further into the numbers and Josephine explains that a budget can only be speculative at this stage. Pressed for answers the entrepreneur calculates that £228,000 could be made on a 1000 seater theatre but there would be £66,000 running costs and a 70:30 split with the theatre.

At the mention of another percentage split the Dragons are riled and Deborah laughs as Duncan questions whether the theatre will take a share of profits or turnover. Josephine explains that the theatre will take 30% of profits or an agreed fee depending on which is higher but Peter Jones is unimpressed. He wants to know what this agreed fee would be and when pressured for a figure, Josephine loses her confidence answering "I don't, I'm afraid, have that number off the top of my head."

Peter thinks Josephine needs more of a handle on her numbers and declares himself out, swiftly followed by James and Duncan. Deborah Meaden, who has past experience of the entertainment industry, chooses to persevere asking experienced musical arranger Mike Moran what else the project has to offer apart from the financials. Mike is confident that the show would revitalise Dusty's catalogue for 2009 and Deborah then invites Josephine's advocate, director Nickolas Grace, into the Den.

Nickolas' experience was a key selling point of the project in Josephine's pitch but when asked about his pedigree it is clear that his idea of "success" doesn't necessarily convert to financial gain. Potential investor Deborah struggles to see what return she could make on her £250,000 and declares herself out.

Theo is the last Dragon remaining and although he's a fan of Dusty's music he can't "get his head round" Josephine's pitch. Director Nickolas remarks that "sometimes you have to make an investment for pleasure" but Theo says he'd get more pleasure seeing a show than investing in one.

The deal done in the Den:

No investment.

Last updated: 29 July 2009