Sceptre bullish on prospects

SCEPTRE Leisure, the Lancashire-based fruit and quiz machine provider was upbeat on prospects despite a dip in half year revenues.

The company, based at Bamber Bridge near Preston, said its strong relationships with major pub companies, a new partnership with a German digital gaming machines specialists and its ability to acquire, stand it in good stead.

In the six months to the end of October profits held firm at £600,000 despite turnover falling from £19.7m to £18m.

Finance director Mark White told TheBusinessDesk.com the fall in revenues had not affected margins but were the result in changes to the way the group accounts for some royalties, and also HMRC requiring the group to change the format of some of its quiz machines – which saw some products, including a game based around the TV show Deal or No Deal removed.

He said the partnership announced this week with German company Gauselmann would have long-term benefits, but would not have an immediate impact on Sceptre’s financial performance.

“We have been looking for a digital partner for some time – and this is a long term partnership. We should start testing products in the next three to six months.”

Mr White said there appeared signs that the rate of pub closures had slowed from 40-50 per week in 2008 to around 20 per week, and that some operators were performing well.

“We have partnerships with the pub companies at the higher end of the market -like Marstons, Whitbread and Punch. We tend to have seen the pubs at the lower end not doing so well – those that don’t have food or outdoor smoking areas.”

During the period Sceptre racked up a new four year contract with snooker halls operator Rileys, which is worth £2.5m.

It has also renewed and extended contracts with existing pub customers Marston’s, Joseph Holt, McManus and De Vere Hotels.

Chief executive Ken Turner added: “We are confident that we can continue to grow our business organically and through acquisitions, should the right opportunities arise.”