Georgica has confirmed that, as it anticipated at the time of its bid for Allied Leisure some ten weeks ago, market expectations for Allied
Leisure's profits for the year to 30 June 2001 are too high.
Georgica said that Allied's two wholly-owned businesses, cue sports and franchising, are sound and capable of considerable further development.
But it added that it is likely to quit its ten-pin bowling business, Megabowl, a 50-50 joint partnership with venture capitalists Duke Street. Georgica says the partnership is 'an inappropriate investment to retain in the longer term' given the managerial difficulties of a 50-50 venture.
Georgica director Neil Goulden has
resigned following the profits warning. Goulden, chief executive of Allied Leisure since 1994 until Georgica's £50m take over of Allied ten weeks ago, is reported to have found it difficult playing a subsidiary role to Georgica's chair Nicholas Oppenheim's. Goulden is expected to receive a £600,000 pay-off when he leaves the group on 31 January 2001.
Leisure's profits for the year to 30 June 2001 are too high.
Georgica said that Allied's two wholly-owned businesses, cue sports and franchising, are sound and capable of considerable further development.
But it added that it is likely to quit its ten-pin bowling business, Megabowl, a 50-50 joint partnership with venture capitalists Duke Street. Georgica says the partnership is 'an inappropriate investment to retain in the longer term' given the managerial difficulties of a 50-50 venture.
Georgica director Neil Goulden has
resigned following the profits warning. Goulden, chief executive of Allied Leisure since 1994 until Georgica's £50m take over of Allied ten weeks ago, is reported to have found it difficult playing a subsidiary role to Georgica's chair Nicholas Oppenheim's. Goulden is expected to receive a £600,000 pay-off when he leaves the group on 31 January 2001.
