Essenden, the country’s largest ten pin bowling operator, has announced plans to launch a “next generation” of family entertainment centres as it returned to profitability in 2010 despite a fall in sales.
The company, which operates 37 tenpin bowling centres, reported profit before tax of £93,000 for the 53 weeks to 2 January 2011, after reporting a loss of £11.9m for the same period in the previous year.
However, the “difficult” trading period saw sales slip from £58.1m to £56.6m. Editda was £4m, down from £5.1m.
The company attributed its return to profitability to implementing its low-cost business model, which saw £4m of annualised savings and key supply agreements retendered. There were 50 management redundancies as focus shifted to front-line customer service.
Advisors have been engaged to investigate restructuring for loss-making sites, which includes action to reduce rents and other operating costs “or remove these obligations completely”
New initiatives at its sites in 2010 included rolling out Costa Coffee operations into 11 sites, offering a new lazer game and Sing Dizzy karaoke offer, and upgrading its website.
The “next stage” in its development will be to combine these trials in one site, along with other improvements such as upgrading the childen’s play concept, the audio/visual systems, and improving extrernal signage.
“We aim to have opened this next generation ‘Entertainment Centre’ concept during the second half of the year and this will form an important step in our future growth plans,” said chief executive Nick Basing.
“We have made some good progress having had to take bold steps to turn the business round. This is in a sector that has been challenged for a number of years. I expect the outlook for the economic environment to remain difficult and uncertain in the coming months.
“Our sole aim is to focus the business on the good assets and additional opportunities, and in doing so return Essenden to growth.”
