Investment case

To excite and to entertain our customers

1. Cash maximisation in bingo

2. Grosvenor recovery and growth

3. Digital growth

4. Gambling Act Review

5. Technology & data

6. Safer gambling

7. People & culture

1. Cash maximisation in bingo

   Our bingo operations in both the UK and Spain are expected to make a positive contribution to the Group’s profit and cash flow going forwards.

   Through the rationalisation of our Mecca bingo estate, specifically the closing of loss-making venues and investing in our strong and highly competitive venues, Mecca has returned to profitability. Whilst the rationalisation of the estate has now largely completed, we believe Mecca can return to double-digit operating profit in the medium term.

   In Spain, our Enracha venues are well invested, flagship venues. We have scope to further improve this already very competitive and profitable Spanish business.

2. Grosvenor recovery and growth

   Prior to the COVID-19 pandemic, Grosvenor was delivering average weekly NGR of £7.5m. With a combination of the impact of the pandemic on our customer base and a tightening of regulation, average weekly NGR fell to £5.9m in 2022/23.

   Through improving our approach to risk management and enhanced customer service and experience, Grosvenor is focused on driving average weekly NGR to at least £7m and beyond in the medium term.

   Securing the much needed land-based reforms in the UK Government’s Gambling Act Review will provide Grosvenor’s customers with a more relevant offer and deliver further significant growth opportunities.

3. Digital growth

   The Group’s digital brands have significant opportunity to grow, holding relatively small market share positions compared to its venues’ brands.

   Following the acquisition of the proprietary technology, the digital business has been working through a comprehensive programme of platform and product enhancements, all focused on delivering an engaging, personalised and increasingly cross-channel customer experience.

   Great progress has been made in 2023/24, and we believe there is opportunity to deliver 8 to 12% compounded annual revenue growth and margin improvement of over 600 basis points over the medium term.

4. Gambling Act Review

   The UK Government’s review of gambling legislation and regulation will provide the much-needed and vitally important reforms for land-based casinos and bingo.

   The proposed changes to land-based casinos and bingo present the Group with a once in a generation opportunity to modernise and broaden the venues experience.

5. Technology & data

   Technology and data are key to the improvements we are making across all of our businesses. There are four key technology projects:

   Single content management system Providing the ability to manage all of the website content for our UK facing brands on a single system. This enables more appealing and relevant real-time promotional content and a smoother customer experience.

   App development Currently, too small a portion of our digital revenue is driven by our apps. Through improved functionality and personalisation we expect to increase our digital app revenues as we better meet the needs of our customers.

   Group-wide central engagement platform Improving the real-time data capabilities across our digital and venues businesses is critical to meeting our customer needs. The platform is helping us deliver a much-improved personalised customer offer in a timely manner.

   Modernisation of our RIDE platform We need to keep investing in our proprietary platform to enable the Group to deliver, at speed, product and service enhancements to our customers.

6. Safer gambling

   Safer gambling is at the heart of building a sustainable business for the long term and is pivotal to our success.

   We believe that providing excellent customer service, safe environments, and protecting personal data are important factors that attract customers to our brands and support sustainable long-term earnings growth.

7. People & culture

   Delivering a high-quality service to our customers depends on our ability to provide a positive working environment for our colleagues.

   Recruiting and retaining high quality talent, providing personal development opportunities and consistently driving colleague engagement are all critical parts of the relationship we have with our teams.

   Our investment case is centred on the Group delivering against its strategic objectives.