Sceptre Leisure bullish about gaming future

Sceptre Leisure, which claims to be the UK's second largest supplier of amusement and gaming machines, has reported turnover trebling for the six months to October 31, 2008.

The group, created via the acquisition of Orb Holdings by Gamingking last September, said revenues grew to £18.5m, with gross profits up from £1.2m to £4.8m.

Pre-exceptional pre-tax profits rose from £400,000 to £1.7m.

Ken Turner, Sceptre's chief executive, said the group's performance was "a good news story".

"This is a great business, with a good range of products, and we've a full order book. Add in the fact that jackpot levels are increasing and it's all got to be positive," he said.

Turner acknowledged that the pub trade was going through a very tough time, but said that machines remained important to a pub's earning stream.

"Yes, AWP income has gone down, but it's still 25 per cent of a pubco's income and raising the jackpot levels will help," he said. "Our rental model is resilient, market consolidatin is benefiting us and recent news on increased stakes and prizes will provide impetus."

Sceptre was "proud" to supply the likes of Punch Taverns and Enterprise Inns, as well as smaller independent operators.

AWPs accounted for 46 per cent of the group's product mix and 65 per cent of its rental income. Turner denied that this could mean the business would be exposed to any significant downturn.

"It's a question of how to drive the income," he said. "Pubcos, licensees and machine operators need to work together."