Page 3 - Stakis A Case Study

Stakis - Case A

Setting the scene; Family Succession

Stakis plc was registered in Scotland, and operated in two

main areas - hotels and casinos - although it had in the past

engaged in other areas of activity.

The Hotels Division had a portfolio of 33 hotels with some
3,667 beds. In the year to September 1992 it made an

operating profit of £13.8 million, which included a profit
from sale of properties of £0.9 million. This compared

favourably with the results of the previous year when the

division recorded an operating profit of £7.2 million and a

loss of £0.1 million after exceptional items relating to the

write-off of assets and redundancy costs.

The 1992 results for the Casino's division showed

improvements from the previous year. Although turnover

at £40.9 million was down by over £6.3 million, the
operating profit of £6.6 million was marginally higher than

in 1991.

The discontinued Healthcare division, while recording a

significant increase in both turnover and operating profit in

the year, was the major contributor to the heavy losses