Goodwill and restructuring dent Barcrest
BARCREST Group, the company which designs and makes gambling games for pubs and amusement arcades, has reported resilient underlying results in a year of change.
The group, which was sold by one US company, International Game Technology to another, Scientific Games Corporation for £35m in May 2011, announced a £13.5m impairment charge in its accounts for the year to the end of September last year, which pushed it into the red with a £10.6m loss.
The impairment charge comprised of a non-cash goodwill write-off of £8m and £5.4m in restructuring costs related to the acquisition.
Profits before exceptionals were 6% lower at £2.2m and turnover in a tough trading environment for the leisure sector by the same percentage, falling from £31.2m to £29.3m.
Since the acquisition Barcrest has been integrated into Scientific Games’ gaming divisions, London-based Global Draw and Games Media.
It is in the midst of relocating from Ashton-under-Lyne to new offices at Broadway 21 business park in Chadderton, a process which will be completed by the end of September.
A major platform for growth is interactive gaming – it is exiting from the manufacture of reel-based arcade entertainment machines.
Among its most popular ganes are Rainbow Riches, Ca$ino, Monty’s Millions, Money Mad Martians and Captain Jackpots.
Looking ahead director Ian Timmis said: “The directors consider that the company is well-placed and remain confident about its prospects for the next year and beyond.”
