Page 5 - Stakis B Case Study

"some lack of clarity of management."

However, at the same meeting at which these comments

were made Sir Lewis did praise Andros for his

"originality and imagination".

Initially the company wished to retain the nursing homes

although it was looking for a joint venture partner to help

develop them. On the other hand it was decided to sell the

casinos, this under a plan agreed with the company's
bankers. These were being sold because they were

profitable, yet offered limited development potential arising

from licensing restrictions. Sir Lewis was confident that a
good price could be obtained. Forty-five pubs were also to

be sold off, along with the restaurants and discos.

The company also aimed to disengage itself from property
over a suitable period. Stakis Land and Estates continued to

function until the end of June 1991. The operating loss for

that year was £1.1 million, which compares to a reported

profit for 1989/90 of £2.9 million. The company report for
1991 noted that the results for that year were achieved in a

very adverse property market and made clear its intention

to invest no further resources in commercial property.
Moreover, the intention was that the existing portfolio

would be `prudently managed' with a view to eventual sale.

To this end the Group recruited an outside specialist,

Co-ordinated Land and Estates PLC who agreed to operate
on a retainer somewhat lower than the former running