| Bingo Giant Up For Sale |
| Monday, 27 September 2010 09:05 |
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Reports over the weekend suggest that one of the largest independent bingo operators that’s operates both land based bingo clubs and an online bingo site could be up for sale. At the beginning of the summer we reported how the Chief Executive of Buckingham Bingo, Andy Cunningham was claiming that trading was “materially ahead” after a number of difficult years. Mr Cunningham claimed: "After two periods of the new financial year, trading is materially ahead of last year. Whilst not wanting to tempt fate I'm cautiously optimistic about 2010-11." The Auditors of the company, KPMG, seemed less than convinced of the companies future: warning "There can be no certainty in relation to the continued support of the bank and therefore the directors have concluded that a material uncertainty exists that may cast significant doubt upon the group and parent company's ability to continue as a going concern."According to the source, Buckingham has appointed corporate finance specialists at KPMG's Manchester office to explore all options for the company’s future. This includes the possibility of selling the company. The company which was sold to Alchemy Partners in 2005 for £90m is expected to be worth a fraction of that amount today. In the recent financial year ending March 2010 Mr Cunningham said that the recession and extensive bad weather had taken a toll on revenues but things were improving after the company had renegotiated four “onerous leases” and had closed bingo clubs in Didsbury, Hunts Cross in Liverpool and Manchester. Its financial backer, Barclays is also more positive of the company after a year of cost cutting. The company has submitted claims for overpayment of VAT to HM Revenue and Customs (HMRC) and while it has received a refund, HMRC are appealing the ruling and a decision from the European Court of Justice. While unlikely if the decision favours HMRC then the company would need a further cash injection to continue to operate. Buckingham Bingo was founded by Panico Panayi around 40 years ago. It has 9 purpose built bingo clubs and is the largest independent bingo operator in the north of England. It was sold to Alchemy Partners when the industry peaked in 2005 for £90m. This was roughly the same time that Beacon Bingo was sold for £100m. Following the smoking ban and changes in legislation the value of the company plummeted and Alchemy were given the choice to inject significant amounts of cash into the business or write off their stake leaving Barclays in full control of the company. Alchemy went with the latter and Barclays Ventures was handed control.
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