Prism shares surge on 36% interim rise

PRISM Leisure, the cut-price computer games and music company, scored bonus points in the City yesterday by announcing a 36 per cent rise in interim profits to pounds 649,000, writes John Shepherd.

Shares in the Middlesex-based company rose 5p to 183p, a record high. The interim dividend is increased 28 per cent to 1.15p.

The company specialises in buying surplus stocks of computer games at between pounds 8 and pounds 12 each, which are re-sold to retailers who want to run cut-price promotions.

While the profit for the six months to 2 October was swollen by pounds 24,000 from an extra week's trading, Prism was confident that full-year results would show a significant advance.

Geoff Young, chairman, said trade was good in the Christmas quarter, particularly in respect of the merchandising of computer games. Prism made pounds 1.33m pre-tax in 1992/93.

Most of the first-half advance was due to higher sales of computer games. Half of the products are own-label.

Mr Young said sales of CDs and cassettes were steady.

Total turnover for the half-year rose from pounds 6.1m to pounds 7.7m. Earnings per share were 4.9p (3.8p).