Existing investors and other institutions are showing a lot of faith in Georgica, a company that has barely even flattered to deceive since coming on to the market in October 2000. For they have between them decided to stump up a massive £24m (underwritten by Investec) for the company to buy the other half of 50%-owned Megabowl from Duke Street Capital, despite the tenpin bowling firm's historic under performance under joint management. Positing that Megabowl's troubles (which have included breaches of its banking covenants) are down to a 'number of factors including its overly complex financial structure, continuing uncertainty over its ownership and the flawed Joint Venture agreement', Geogica believes that it 'has considerable potential'. Indeed the directors state that they 'are highly confident that two years from now Megabowl will be capable of achieving a run rate profitability equivalent to annual EBITDA of at least £16m'. Clearly, if this can be achieved, anyone investing in Georgica right now is likely to get some handsome returns. Given that Megabowl actually achieved such a result as recently as the year to July 2001, it is also far from the bounds of possibility that this will come about. The City is clearly impressed with the potential, though Georgica still has plenty to prove, not just with Megabowl but with its many other 'leisure' interests too.

Georgica	AIM	£16.07m	16.50p	0.00p
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