Essenden strikes despite tough conditions
BOWLING centre operator Essenden, which has six outlets in the West Midlands, has announced a fall in half year like for like sales compared with the same period last year, although pre-tax profits rose by 20%.
However, the 2% dip is less than the 11% dip experienced mid way through 2009. Bad weather closing a number of outlets at the start of the year has been blamed for the decline.
The company, which operates centres in Birmingham, Coventry, Leamington Spa, Stafford, Stoke on Trent and Telford, saw pre-tax profit increase to £1.2m in the six-month period, which compares with £1m in 2009.
Net debt during the period fell by £1.1m to £2.5m – compared to £3.6m by the end of December last year.
Improvement in like for like sales was driven by a 2.5% growth in footfall plus a higher frequency of visits by families. It was also helped by a reduction in costs of £0.4m. The company is now focusing on boosting its food offering.
Further cost savings have been identified and the company is also pressing ahead with a management overhaul with four new executives joining the firm and 15 general managers being replaced.
Developments within the 38-site portfolio include a new karaoke concept, Sing Dizzy, which is being trialled at a number of centres, while Costa Coffee outlets have also been installed at several centres with plans for more during the second half.
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Nick Basing, chief executive, said trading had been tough but there had been a pick-up in recent weeks.
“We are off to a good start in turning Essenden round. There has been a top to bottom overhaul of the structure of the business. We will invest in new ideas, serve customers better and operate at a lower sustained cost base. This is not a quick fix. We are creating the platform to deliver better quality profits next year,” he said.
