Sports, leisure and fast food group Georgica is showing signs of improvement but until its shrugs off its loss making divisions profits will remain scarce. For the year to December, turnover was virtually flat at £129.4m whiles pre-tax losses fell from £11.2m to £7.5m. In October, Georgica bought the other half of 50%-owned Megabowl from Duke Street Capital for a nominal consideration as well as the assumption of Megabowl's debts to Duke Street (now around £23m). That took total group net debt to £92m at the last count. 38 of Megabowl's sites will be renamed Tenpin and refurbished over the next two years. More than £1m has already been saved by renegotiating supply contracts and sales since October have declined 1.3% compared to the 6.9% decline recorded in the same period last year. Megabowl's 12 other businesses, which have 'onerous lease commitments' are to be left untouched until negotiations with landlords are concluded. On a positive note, the 154 strong 'cue sport' businesses under the Rileys brand saw sales grow 4.1% during the year with sales since January up 9.5%. Refurbishment of these sites will continue until 2005. The Allied Leisure business, incorporating 33 Burger Kings, nine tenpin bowling venues and seven pubs and nightclubs, continues to underperform and Georgica is now looking to sell all Allied's premises to its landlords. Georgica will cease financial support to Allied if the landlords do not reach an agreement. Patience and nerves of steel are definitely required for this stock.