Page 53 - Stakis Consolidated Teaching Note

1991-95 1991-95

STRENGTHS WEAKNESSES
- Focused strategy - Survival Management
- Lack of Development Finance
- Strong core businesses
- Strong Professional Management - Wary Shareholders and investors
- Relationship Between Sir Lewis And David Michels
- High Borrowing Levels
- Sound and Conrtrolled Finance
- Recovered Image
- Casinos And Hotels Both Cash Positive
- Solid asset base
- Low gearing
- Committed workforce
- Increasing Reputation
- Clear Break With The Past

1991-95 1991-95

OPPORTUNITIES THREATS

- Room For Growth In The Market - Economic Fragility Of U.K. Economic Recovery
- Social Change
- European Expansion
- Planned Diversification - Government Legislation e.g. Easing Of Restrictions
on casino gaming
- Block share held by Stakis Family
- Success Requires Continued Support of Banks

7 : FINANCE

Throughout the period 1986 to 1991, and even in the early

part of the recession, Hotels consistently produced good

profits. In 1991 profit fell. The Leisure Division, which
contained casinos, steadily increased its turnover though

profit margins did not keep pace with turnover. The

Property Division made good progress from 1986 to 1989,
at which point the recession began to bite. Property values

fell and in 1991 losses were recorded. Healthcare was a

business in its infancy but operating profits were steadily
growing. The Stock Market crash of 1987 and changes