While Buckingham Bingo has been in the headlines for all the wrong reasons, the Chief Executive is confident about the future for the company. While things are looking better for the company it is not out of the woods yet.
With the effects of the smoking ban, changes in legislation and the recession taking its toll the company has ridden what can only be described as the worst possible storm. However it seems that maybe the worst is over and the situation is improving. Chief Executive of the company, Andy Cunningham, was reported as stating that trading was “materially ahead” after a number of difficult years.

The accounts for the parent company Full House Holding’s for the year to March 31, 2009, showed how the company had breached banking covenants in December and auditors KPMG warned: "There can be no certainty in relation to the continue 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."

For the period ending March 2009 the company reported a 19% drop in revenue to £27.1m and a pre-tax loss of £13.6m. While the company has reported a loss of £88.6m the previous year this was largely down to an impairment write-down. Operating profit before exceptional items was £500,000 which showed a substantial improvement on the £400,000 loss the previous year.

Mr Cunningham is somewhat more optimistic: "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."

In the recent financial year ending March 2010 the 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.

A well known specialist within the industry commented: "It will be interesting to see how well the company performs this year. Andy has made positive comments, and there has been many changes to the company. Not all bingo operators have been so harshly effected and lets hope after the financial restructuring and club closures the company is not looking for further excuses for its trading results"

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.