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14 – STR ENTERPRISES LTD THE GROUP

MANAGERIAL OPPORTUNITY

STR Management Services Ltd have been appointed by Harrison Golf and Leisure
Limited (HG&L) to manage all the UK Hot Shots Centres. The company has been involved
right from the concept stage giving operational input into the design stages and are
excited and committed to use their considerable management experience of established
venues to build the strongest team to operate Hot Shots venues within the UK.

GROUP COMPANY BACKGROUND

STR Management Services Ltd, a wholly owned subsidiary of STR Enterprises Limited
(STR), will be responsible for the delivery of the Hot Shots UK management service
agreement and was established in 1996 to develop a range of mid-market character
hotels offering great value accommodation and food. STR has a proven background and
track record of acquiring existing underperforming businesses in good locations in need
of investment, focused management and positive marketing direction which they then
develop as trading units. In addition to hotels, the STR Group of companies have
developed several leasehold leisure businesses focusing on the refurbishment and
management of historic buildings to provide stylish bar style Food & Beverage
operations as well as function, meeting and sports facilities.

GROUP RESULTS 2020

The Group improved its turnover in the year ended 31 January 2020, with overall
revenues from trading units increasing to £8.32 million. The Group are forecasting the
group operating profit before depreciation, administration and other income to increase
to £1.3 million, with net assets of £8.5 million. In the previous two trading years, 2018 to
2019, the STR Group recorded operating profits of £1.4 million. The strong performance
of the Group has enabled it to continue to make significant acquisitions and also to
invest in Harrison Golf and Leisure Limited.

MANAGEMENT AGREEMENT

With its successful track record in the hotel and leisure sectors and its strong local
relationships in the Newcastle area, particularly with the Council regarding its lease and
local planning matters, STR is the ideal candidate to take on the management of the
Centre. This is further confirmed by its decision to invest as a shareholder in HG&L and
its full participation in the design development of the Centre, with its professional
advisers from other projects forming the greater part of the professional advisers team.

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