Sceptre raises £5.5m in share placing

SCEPTRE Leisure has raised £5.5m from an institutional investor after failing to secure growth funds from other sources.

The AIM-listed supplier of fruit, bingo and lottery machines to pubs and private members’ clubs said it will use the cash to strengthen its balance sheet and fund future growth.

In a statement Preston-based Sceptre said it had gone to the market because the closure of trade credit markets and the lack of asset finance had constrained the firm’s growth at a time of “unprecedented opportunities”.

It said: “There has been considerable consolidation in the gaming machine supply market. This consolidation has opened up significant opportunities to win additional business with some of the major pub companies within the UK. 

It added: “The proceeds of the placing will allow the company to take advantage of these opportunities and extend its machine portfolio, take on new customers and strengthen its balance sheet.”

Some 16 million new shares, or nearly 30% of the enlarged share capital, have been placed with Hillroad Investments at 33.1p, a significant discount to the current share price of 70.5p.

The company said negotiations regarding the placing began in early June when its share price was lower. Despite the disparity the board said the deal was “in the best interests of Sceptre Leisure and its shareholders”.

Chief executive Ken Turner said: “We are delighted to welcome Hillroad as a substantial shareholder. The additional capital will allow us to drive our business forward and take advantage of some of the significant opportunities that currently exist in our market place.”

Sceptre was created last September by the reverse takeover of its owner, the privately-owned Orb Holdings, by rival machine operator Gamingking.

Hillroad Investments is a new vehicle set up to orchestrate the deal. A spokesman for Sceptre would not say who its backers are.