Leeds-based gaming machines supplier, Dransfields, has reported a successful year of trading despite the continued impact of outside socio- economic factors.
Despite feeling the effect of currency changes, a changing societal view on cash and the constricting of key markets, Dransfields reported a successful year of trading in a recent release.
In a financial report for year ended 30 June 2017 the independent amusements supplier again made significant gaming machine investments for supply into private members clubs and pubs, with all money put into fixed assets coming from operational cash flow. The company reported overall turnover of £22.5m, up from £22.1m the period prior,with operating profit rising from £5.5m to £5.6m and pre-tax profit falling from £11.4m to £5.6m.
As is a regular story the industry over,the introduction of new currencies into the UK market and the continued rise of cashless payment solutions had an impact of results. In the results’ accompanying report, the directors said: “The introduction of polymer banks notes this year along with the new £1 coin was a challenge for the whole industry and did have some impact on the results for the year. The technical requirements were costly and complicated to implement and no financial assistance was given by government.
“Despite these changes and subsequent costs, due to continued investment in machines and further business acquisitions, alongside well established business controls and practices, the board are pleased to report a growth in both turnover and operating profit for the year to 30 June 2017.”
Since the year end the company has continued upon its investment strategy with the acquisition and subsequent estate refurbishment of the Lottery King Brand as it looks to make the most of its firm financial footing.
“With a strong balance sheet, cash reserves in particular, an excellent credit rating and a solid customer base the board consider the company to be in a very strong position. This has been demonstrated after the year end as the company strengthened its position in the pull tab market with the acquisition of the Lottery King brand which has been present in clubs for over 25 years. This adds the popular range of Lottery King tickets to the Dransfields Lucky Dip Pull Tab portfolio and increase choice for all Dransfields customers,”the report commented.
It is further noted in the report that the company foresees general economic uncertainties in the wider UK retail space and the year on year decline of private members clubs represent the two largest long term risks to business, but it is working with all relevant bodies to maintain the long term survival of the latter.
