ESSENDEN LTD 4th November 2014
ESSENDEN PLC ( "Essenden" or the "Company") Site acquisition and machines transition
Essenden has acquired an existing bowling site in Doncaster on a leasehold basis from the administrators of Keith Brown Properties (Hull) Limited for consideration of £0.65m (including fees). The site is well-located on a leisure retail park, close to a cinema, restaurants and supermarkets. It has traded strongly over the past two years. The board expects that the acquisition will be earnings enhancing in the first year, even before the benefit from applying Tenpin's operating model.
The new contract to provide Essenden's amusement machines estate, recently entered into with Bandai Namco Amusement Europe Ltd, has resulted in this key category being materially improved. The migration has now been completed on schedule. The new machine estate is operating satisfactorily. After consultation with PWC, our auditors, it has been decided to treat the new machine contract as a finance lease. This accounting treatment will not impact profit before tax, earnings per share or cash flow associated with the new contract.
Nick Basing, Essenden CEO said :
"The acquisition of an earnings enhancing site along with the successful machine transition further strengthens my view for 2015 despite some macro-economic uncertainty."
Nick Basing Nicholas Wells
Richard Darwin Max Hartley
Callum Davidson
Matthew Smallwood
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