Sports Cafe takeover talks end

Takeover talks for the Sports Cafe chain, first revealed on 8 September, have been ended after no satisfactory offer was tabled.

Last week, the Sports Cafe chain revealed that like-for-like sales in its fourth quarter of 2006 were below those of 2005. For the full year like-for-like sales fell 1% compared to 2005 levels.

But the impact of a new site in Bristol and a full year's trading contribution from sites in Liverpool and Newcastle increased overall sales by 27% to £17.9 million.

A statement to the market said: "In spite of continued market pressure on margins and operating costs, Sports​

Cafe has continued to maintain its gross margins and generated a positive operating cash flow after interest payments for the year ended 31 December 2006.

"This cash was used to part-finance the continued expansion of the company with the remainder from existing bank facilities.

"The company continues to remain within the terms of its banking covenants."

However, the company forecast an operating loss for 2006 similar to that of 2005.

It is carrying out a review of its future strategy and exploring a number of financing options, including but not limited to the sale and leaseback of the Birmingham site.

Such options will allow the company to restructure its balance sheet and continue the expansion of the Sports Cafe estate.