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 End of the licence fee: BBC to back radical overhaul of how it is funded
- 2 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 3 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 PornHub turns masturbation into energy in bid to save the planet
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
End of the licence fee: BBC to back radical overhaul of how it is funded
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...