Trocadero sale heralds fresh tack
Thursday 03 July 1997
The group, which said it was actively seeking to appoint a new chief executive from the leisure industry, said the deal followed "disappointing" results from its new Segaworld entertainment centre within the Trocadero complex near London's Piccadilly Circus. One industry observer said that John Conlan, who recently left the First Leisure company, could be a candidate for chief executive.
Shares in Trocadero have slumped since peaking at 79.5p in August last year after analysts' profit forecasts were slashed as Segaworld failed to live up to expectations. Yesterday, the shares fell 2p to 28p.
Nick Leslau, who is to continue as chief executive of both Trocadero and Burford until a replacement at Trocadero can be found, said the decision to sell the two properties back had been prompted by "disappointing" earnings at the Sega joint venture. "It appears to be improving, but at the moment it appears unlikely to achieve its original budget for some time."
The demerger from Burford in November 1995 had been because Trocadero was a "hybrid", with shareholder returns from both assets and earnings, Mr Leslau said.
But the failure of earnings to materialise meant it had reverted to being a property company, with the situation complicated by last year's pounds 13m deal to buy rights to Enid Blyton characters including the Famous Five and Noddy.
The property deal would give Trocadero net cash of around pounds 73m after all financing commitments, he said. "It is an exciting business and will focus on media and brands businesses."
The deal involves Burford, which still owns 25 per cent of Trocadero, paying pounds 159m on completion, with the rest staged over the next three years. The sale will lead to an accounting loss of pounds 18m for Trocadero this year, but represents an underlying surplus of pounds 53m over acquisition and development costs.
- 1 Christians: The world's most persecuted people
- 2 Israel-Gaza conflict: The secret report that helps Israelis to hide facts
- 3 Thatcher ‘was warned of Tory child sex party claims’
- 5 The Simpsons Family Guy trailer: First look at crossover episode after Comic-Con debut
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Thatcher ‘was warned of Tory child sex party claims’
Israel-Gaza conflict: President Obama presses Netanyahu to call ‘immediate and unconditional’ Gaza ceasefire
Lauren Goodger sex tape: Reality star calls for tougher laws on revenge porn after intimate video leaks online
Iraq crisis: End 'very near' for Christianity after Isis takeover, says Bishop
Israel-Gaza conflict: The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£28000 - £32000 per annum: Ashdown Group: Training/Learning and Development Co...
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
£30000 - £45000 per annum: Harrington Starr: A Global Financial Service Organi...
£30000 - £40000 per annum + Bonus+Benefits+Package: Harrington Starr: C# Web d...