Page 6 - Stakis C Case Study

"In addition we got rid of anything not tied down - it was
only £6 or £7 million but it emphasised the approach

needed and the determination to turn the business

around".

In what was left of the financial year Hotels made their

targets and margins rose to the present level of 28% from a

low of 14%. Casinos took longer to reach their new targets.

Alex Pagett commented:

"My own area had a budget of £1 million, it is now

£300,000 [1994]. We now have no consultancies and no

Financial PR people. The only outside consultancy [1993]
was design of the photographs in the Annual Report-cost

£1,000. The report was done in-house in black and white,

is very simple and costs much less than most.I have spent

most of my time recently on communicating with the City
but, I am responsible for all communications - with staff

as well as the media".

Michels was perceived by the City to have brought to the

group the required blend of specialist experience, general

management understanding and energetic leadership and
his impact on all group staff and all group activities has been

swift and positive. Hotels in particular, representing nearly

three-quarters of group's assets, were said to have been

galvanised by his detailed knowledge, common sense and
purposeful delegation of responsibility.