£20m loss on slots for gaming group
DANOPTRA Gaming Group, the Yorkshire-based business that owns the Bell-Fruit and Gamestec slot machine operators, made almost £20m of losses last year but insists its toughest times are behind it.
The group, based at Horsforth in Leeds, supplies and operates around 40,000 gaming machines in pubs, bars, leisure venues, betting offices, clubs, bingo halls and casinos across the UK including the market leading 'Deal or No Deal' quiz game.
Formerly known as Kunick, before it was taken private off the stock market in 2002, the group has seen a complete change of management in the last two years as it looks to move back into the black.
It made a loss of £19.904m in the 12 months to September 30 on turnover of £195m, however, it made a £24.3m loss the previous year on sales of £183m.
Chief executive Derek Lloyd, who joined 18 months ago, pointed to strong operating profits of £10m last year compared to a £2m loss previously as evidence that the transformation of the group is working.
He said that the introduction of the 2005 Gambling Act last September would create significant opportunities for growth.
Gamestec has signed a deal to supply machines to the Laurel Pub Company, which has a portfolio of 460 pubs and bars under the Slug & Lettuce, La Tasca, Yates and Hogs Head brands.
Danoptra has shed a significant number of jobs – its Gamestec subsidiary once employed 1,300 and has reduced that to 1,000.
It is restructuring its debt and reduced its overdue debts from 35% to 9% of total debt last year and is in discussions with its lenders over a recapitalisation which it hopes to conclude in the next few weeks.
Mr Lloyd said: “The deregulation of the UK gaming and amusement industry has led to significant commercial opportunities for the group. I am confident that, under the leadership of the new management team, Danoptra is well placed to continue its successful growth story in international as well as domestic markets.”
Joint chairmen Geoff Westmore and Philip Walters, said that a strategic review of the business was now in its closing stages.
“The group is now a far more focused and cash generative business with a strong commercial strategy,” they said.
Mr Lloyd was joined by new chief financial officer Paul Meehan last May as well as Tony Oliver as business development director in June and strategy director Richard Millman in September.
