Sceptre Leisure secures Punch deal as profits rise
AWP supplier Sceptre Lesiure has secured a two-year deal to supply Punch's managed estate of pubs.
The deal will see Sceptre supply coin operated amusement equipment including AWPs, pool tables and music solutions to approximately 30% of the estate, which includes brands such as Chef & Brewer.
The roll-out of 1,000 Sceptre machines will begin in mid-October and last for about four-weeks.
The deal comes as Sceptre Leisure unveiled its 12th year of consecutive sales and profit growth. It recorded a 9% increase in revenue to £42.8m for the 12 months to 30 April with EBITDA slightly up to £13.8m from £13m. Pre-tax profit jumped 37% to £1.9m while net debt has been reduced to £15.9m from £19.5m.
Pubs account for 70% of Sceptre's income, including 70% of the Mitchells & Butlers estate and 60% of the Whitbread estate.
Recession proof
At its pub supply division, Sceptre Leisure Solutions, like-for-like revenue grew 6.6% and machine numbers increased by 3.7% (excluding disposals) against a backdrop of pub closures.
At its pub division, Sceptre Leisure Solutions, like-for-like revenue grew 6.6% and machine numbers increased by 3.7% (excluding disposals) against a backdrop of pub closures. The division provides 90% of Sceptre's revenue — the majority of which is from pubs.
Average weekly rental returns fell by 8% on last year (against a sector decline of 17%) due to two main factors — the sale of its betting shop business and a decline in SWP income due to the withdrawal of certain games after a change in regulation.
However the average weekly rental income is up 20% over the last three years overall.
The total number of machines supplied by the company increased to 21,329 from 20,921.
"The pub market is tough," said chief executive Ken Turner. "But it proves that this is a very resilient business and that machines are a key component in bottom line income.
"It is almost recession proof because pubs need that extra profit at the moment."
Turner said the company was seeing "remarkable" figures from the new "no payout" machines, where customers redeem a ticket for their prize at the bar.
