Praesepe publishes preliminary results for 52 weeks ended 27 December 2009
April 30th 2010
Preliminary Results for the 52 weeks ended 27 December 2009 - Regulatory News
Praesepe is a UK based Company quoted on AIM. Its strategy is to build a diversified gaming group by pursuing acquisition and consolidation opportunities in the Low Stake High Volume ("LSHV") betting and gaming sector in the UK and Europe. Potential areas of interest to the Company include, but are not limited to, Adult Gaming Centres ("AGCs"), Family Entertainment Centres (coastal family arcades, or "FECs"), bingo, sports betting, on-line gaming and provincial casino gaming.
The statement below reports Praesepe's trading results for the 52 weeks ended 27 December 2009, which include a full year of trading and central costs for the 31 Cashino sites acquired in 2008 and the Greenfield AGC opened in December 2008, together with the post acquisition trading results of the 19 additional AGC and FEC sites acquired during 2009 and the trading of the three Greenfield AGCs opened during the year.
Reported Financial Highlights
- Revenue £11.9 million (FY08 £4.5 million)
- Gross profit £6.3 million (FY08 £2.5 million)
- EBITDA* of operating businesses £2.2 million (FY08 £1.0 million)
- Group EBITDA* of £1.1 million (FY08 loss of £1.2 million)
- Exceptional non-recurring costs of £0.6 million (FY08 costs of £1.8 million)
- Group loss before tax* £0.7 million (FY08 loss of £1.6 million)
- Loss per share of 0.7p (FY08 loss of 3.0p)
Operating Highlights
- Three successful acquisitions of operating businesses, comprising 14 provincial AGCs, four FECs and the iconic Crystal Rooms AGC in Leicester Square, London
- Three new Greenfield AGC sites opened
- Stakes and prizes on Category C gaming machines were doubled in June 2009 to £1 maximum stake and £70 maximum payout
- Increasing penetration of equipment operated on a revenue share basis with UK manufacturers
- Raised £5.1 million of new equity (before expenses) and issued £6.5 million of unsecured subordinated loan notes during 2009 to fund corporate development and acquisitions
- Subsequent to the year end completed a £6 million placing and the acquisition of six bingo clubs and 26 AGCs through the purchase of Beacon Entertainments
* Stated before exceptional costs and IFRS 2 share based payment charges
Current trading and Outlook
Current trading in Praesepe's core and acquired businesses remains relatively resilient to the adverse economic environment. We expect to see an ongoing positive impact on like for like revenues in 2010 as we continue to install new Category C gaming machines across the estate. We believe there could also be an increase in stakes on Category B3 machines later in 2010, as a result of the current review being undertaken by the Gambling Commission and the Department of Culture Media and Sport, which could drive a further uplift in our revenues if implemented.
We have good visibility on our fixed and administrative cost base with bandwidth to support the Group's growth. As we add new operating sites to the Group through expansion and acquisition we expect revenue growth to drive operating margin expansion.
The management team is confident in its ability to integrate and extract synergies from all its acquired businesses, particularly the identified £2 million cost savings from Beacon Entertainments in 2010. We are already making good progress in delivering these cost savings and we look forward to updating shareholders at the half year.
Commenting on the results Nick Harding, CEO of Praesepe, said:
"2009 was a year of significant development for Praesepe as we added new venues and gaming formats to our fast growing portfolio. In 2010 we expect to begin to see the benefits of increased scale and operating leverage as we continue to grow the business.
We were also able to refresh our machine portfolio following the Government's long awaited increase in stakes and prizes, which has begun to drive an uplift in revenue that we expect to continue in 2010. Despite the UK being in recession throughout 2009 we are pleased that our like for like revenues, particularly AGC machine revenues, were relatively resilient across the Group. This, combined with a tight control on costs, meant we delivered EBITDA growth for the year.
We have successfully completed the acquisition of Beacon Entertainments since the year end. Beacon is a transformational deal for Praesepe and we are very excited about the opportunities it offers us for the future."
Contacts
Praesepe plc
Nick Harding, Chief Executive Officer Tel: +44 (0)7970 148000
Matthew Proctor, Chief Financial Officer Tel: +44 (0)7985 116578
Brunswick
Chris Blundell Tel: +44 (0)20 7404 5959
Oriel Securities (NOMAD and Broker)
Natalie Fortescue Tel: +44 (0)207 710 7600
Emma Griffin Tel: +44 (0)207 710 7600
To read the full release please visit the London Stock Exchange
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