Georgica seeks cash for snooker push

GEORGICA, the leisure group run by entrepreneur Nicholas Oppenheim, is to raise up to £17.45m through a share placing and open offer in order to speed up the rollout of its chain of snooker halls.

While this business has been earmarked for investment, today's half-year results reveal high levels of debt and management problems at Megabowl, the ten-pin bowling clubs that Georgica owns jointly with Duke Street Capital.

Despite like-for-like sales increasing 4.9% at Megabowl for the six months ended 30 June, Georgica's share of servicing its debt was £4.158m. This wiped out operating profits of £3.6m leaving a pre-tax loss of £1.08m, up from losses of £650,000.

Worse, Megabowl breached its banking covenants in June. But Georgica has decided it wants to hang on to the investment.