Georgica, the leisure group, has reported that full-year pre-tax profit increased by £4.3m to £6.7m.
However, the company said that underlying trading during the year to 31 December 2006 was lower than the previous year as due to the hot summer, the World Cup, increased utility costs and the introduction of the smoking ban in Scotland.
Turnover declined from £129m in 2005 to £125.6m, while ebitda was approximately £3.5m lower than the previous year at £17.8m.
Same outlet sales at Tenpin, its tenpin bowling brand, declined by 0.5% during the year but increased by 1.7% in the last quarter.
During the year, the group sold two freehold bowls for redevelopment for an aggregate consideration of £17.3m, which together contributed £350,000 to annual ebitda.
It said it would complete the refurbishment of its Tenpin estate, which currently stands at 39 sites, with six more contracted to open, this year.
Same outlet sales in Rileys, its pool, snooker and poker brand, fell by 2.9% during the year.
It opened or acquired 12 new Rileys outlets in 2006 and agreements to lease a further eight sites were signed.
The group said that a Rileys outlet, which contributed £160,000 to ebitda in 2006, was conditionally sold for £2.95m for development and two outlets, which contributed virtually nothing to ebitda, were sold for £900,000.
Georgica said that the refurbishment of its Rileys estate was substantially completed.
It said that its Scottish outlets had been adversely affected by the smoking ban, particularly during the early autumn. However, trading over the last seven weeks has shown definite signs of improvement.
The group said that progress was being made both in enlarging and improving the quality of its underlying estate and in realising freehold properties for development and, in the last quarter, trading has improved substantially in both Tenpin and Rileys.
The company also said it had received the necessary tax clearances towards the proposed demerger of its two businesses.
