EUROPEAN LEISURE, the British snooker and gaming machines operator with an Irish share quotation, has increased its pre-tax profit by 29.5 per cent to £2.22 million sterling in the six months to December 31st 1995. Further growth is anticipated for the full year.
The group has been able to reduce its debt burden. Net borrowings fell from £56.3 million to £55.5 million. The gearing remains at a high level but has been trimmed from 99.5 per cent to 90.7 per cent.
Although the profit growth is, below the group's expectations, the company achieved growth in turnover and profits in its two divisions entertainments and snooker and Maygay machines.
Entertainments and snooker pushed profits up from £3.46 million to £3.59 million, offset by £2.045 million in net interest payments.
The entertainments business was affected by the unusually warm summer and autumn weather and the Christmas trading was below expectations.. Chairman, Mr Clive Bastin, said this usually robust trading seasons was hit by the continuing restrictions on Sunday dancing.
The snooker business enjoyed "strong" growth in sales and profits. This improvement, he added, was spearheaded by the newly developed Riley's American pool lounges. This division now has 16 clubs operating under this format.
The strong growth in Maygay was attributed to the launch of successful machines in Britain, to both the pub and club markets "as well as continued exploitation of the European export market". Group earnings per share rose from 6.3p to 8.0p. Shareholders' funds went up from £56.5 million to £61.2 million.
The accumulated profit and loss account, at £34 million, now exceeds the deficit of £31.2 million in other reserves. This prompted the group to declare that while no dividends are being paid, this "policy will be reviewed at the year end".
Trading since the beginning of the year has been "mixed" although snooker continues to do well. Turnover in entertainments is at a similar level. Profits for the full year are expected to well above the £4.1 million generated last year.
