Sceptre Leisure sees profits slump by a third

UK-wide pub closures were partly to blame for a 33 per cent slide in first half profits for Sceptre Leisure, which supplies amusement machines to the on-trade.

The group also said recent changes to SWP (quiz machines) legislation by HM Revenue and Customs impacted machine income for both machine operators and pub companies.

Turnover dipped seven per cent to £19.7m, with operating profits down 24 per cent to £1.2m and pre-tax profits down a third at £609,000.

Ken Turner, Sceptre's chief executive, said the sale of 770 fixed-odds betting terminals in April 2010 meant the group had started the year from a lower platform versus the second half of the last financial year.

"In addition, pub closures contributed a further shortfall of some 510 machines as the first half of the year progressed," he added.

But he said the group's figures for the six months to the end of October represented "a strong performance in a difficult market".

Turner said the group was delighted to have been awarded the contract to supply machines to around 800 of Punch Taverns' managed pubs, and taking into account closures Sceptre now had 21,100 machines installed across the UK, compared with 21,300 at the end of the previous financial year.

"In spite of a challenging operating climate, I believe that the Group remains well-placed to take advantage of opportunities within the licensed retail market," he said.

"We continue to win new business on the back of our excellent customer service, and we continue to identify acquisition opportunities in a fragmented machine market. We also continue to concentrate on our key operational ratios to ensure we maintain profitability and drive customer service."