Gala Coral Group (Group) announces its results for year ended 27th September 2008. At the same time, and in line with the Recommendations of the Walker Report on private equity, the Group is publishing a comprehensive Annual Report within three months of its year end.
Financial Highlights
- Group Turnover decreased by 3% to £1,268m.
- Group EBITDA (pre-exceptionals) decreased by 10% to £362m.
- Cash balances increased by £49m to £146m.
- Net Cash inflow from operations of £314m.
- Successful renegotiating of Group’s banking covenants.
- £97m of Senior Debt repaid during the year.
Gala Coral Group was adversely affected by smoking bans across England, Wales and Scotland in its bingo clubs and casinos which was the main reason for the year-on-year reduction in Group EBITDA. In April of this year the Group successfully renegotiated its banking facilities which created sufficient financial headroom for the business to meet its needs on an on-going basis. Overall cash reserves remain strong at £146m.
Operational Highlights
- Coral grew EBITDA by 9% benefiting from longer opening hours, new machine content and 46 new betting shops.
- Gala Bingo responded to the smoking bans by cutting running costs by 25% and introducing a new stake retention jackpot game, High 5.
- E-Commerce division saw strong growth of 13% with Galabingo.com maintaining its market-leading position in the online bingo market.
- Gala Casinos grew admissions and recruited 400,000 new members and rolled out its innovative loyalty card, Fortune, across all casinos.
- International development led with 336 betting shops open in Italy.
Current Trading
- After nine weeks of the new financial year the Group is trading in line with Budget.
- All divisions showing strong growth on last year, with Coral showing growth of 17%.
Outlook
The overall economic outlook remains unpredictable. The Group has therefore responded to this by cutting costs, conserving cash and reducing its debt with a deliberate short-term focus. With an enhanced focus on the Group’s core competencies the Group is confident that it will meet its financial targets for 2009 and out-perform its competitors on a business-by-business basis.
Dominic Harrison, Gala Coral’s Chief Executive said,
“Last year was challenging for Gala Coral due to well tracked regulatory and economic impacts. I believe though that the Group responded well to these challenges and I am particularly pleased with the growth delivered by Coral – our main business.
As the economic outlook remains uncertain we have responded with intelligent cost management and an internal restructuring to make sure we are as efficient as possible to cope with these challenges. We have started the new financial year well and I am confident we will continue to outperform our competitors and meet the targets we have set ourselves in 2009.”
