Companies: TTH   

As foreshadowed here, bingo operator Top Ten Holdings has announced profits up 29.5 per cent to £1.6 million and is buying Westvale Leisure for £5.35 million.

AIM-quoted Top Ten, which is already Britain's third largest bingo group with 37 clubs, mostly in the north of England, will add 13 more Walker Leisure clubs in the north and midlands with the acquisition of Westvale, Walker's parent company. Top Ten, chaired by Sir Aubrey Brocklebank, is paying £4 million cash and £1.3 million in shares at 5p to Westvale's two vendors, both employees of the company, and one of them, managing director Graham Kerr, is joining Top Ten's board with a 5.85 per cent stake and a £110,000-a-year-plus-perks service agreement.

The Westvale deal accompanies Top Ten's results for the year to March, showing turnover 22.4 per cent ahead at £13.9 million and earnings up 24.2 per cent to 0.36p a share. Directors are recommending a 20 per cent dividend increase to 0.06p a share.

Full-year profits growth, reflecting the integration of the Mason's clubs bought in October 2003, showed a deceleration from the 100 per cent gain seen at the half-year stage. Distribution costs rose 28 per cent to £9 million.

Brocklebank is optimistic about the current year and the impact of gaming law changes on the business. He says Top Ten, which had £1 million in the bank in March, 'continues to seek acquisition opportunities'.

Unchanged at 5p, the shares value the company at a grudging £19 million.