[2] He then moved to the rival company Astra-National where he co-produced The Flag Lieutenant, one of the biggest hits of 1926, starring Henry Edwards.
In 1927, Hagen and Edwards formed a separate production company, and created a sequel The Further Adventures of the Flag Lieutenant, which also proved popular with British audiences.
It meant that cinemas now required an urgent increase in the availability of British films and began by producing The Passing of Mr. Quin, an Agatha Christie adaptation, which he directed himself.
Hagen gradually began to gain commissions from British distributors who needed cheap films to help them comply with the quota.
[4] The sudden arrival of sound created an increased demand for double bills and it soon became established that the low-budget films would be screened as a prelude to the more expensive main features produced by major studios.
His major breakthrough as a producer came in 1929 when he secured a contract with one of the Hollywood Majors, Warner Brothers, to provide them with a supply of British 'quota quickies'[6] which they needed in order to meet the requirements of the Cinematograph Films Act 1927 in order to exhibit their American-made films in Britain – their most important foreign market at the time.
While Hagen's business model depended on the money he received to produce Quota Quickies, he was also more ambitious and oversaw film series dedicated to Sherlock Holmes and Hercule Poirot.
In 1930, one of the extras working on Spanish Eyes, a night-time production, died in strange circumstances, which drew attention to the studio's activities.
Hagen eventually tried to remedy the lack of space by rebuilding Twickenham, and by purchasing additional studios in Merton Park and Elstree.
His interest in more expensive films was spurred by the global success of The Private Life of Henry VIII, produced by Alexander Korda.
[9] In April 1935, Hagen made his last quota film Inside the Room for Universal and ended his relationship with the Hollywood Studios.
Actors including Lupe Vélez, Edward Everett Horton, Cedric Hardwicke and Boris Karloff appeared in Twickenham films during the Hagen era.
Hagen attempted to persuade his creditors to allow him to go into Voluntary liquidation, but a group led by the Westminster Bank refused to accept the proposal.