Arcade Owner Hits Jackpot!!!

anonamouse · Post by **anonamouse** » Sun Oct 21, 2012 6:58 pm

I don't post here often, but i thought this would make a good read...

i've typed this off a real life newspaper, and my typing speed is about 2 words a minute, grrrr!

The Sunday Times .

The secretive leisure chain that runs ANGUS STEAKHOUSE, BRIGHTON PIER and BLACKPOOL'S CORAL ISLAND has paid £109,000,000 divi to an OFFSHORE company owned by the founder's son.

NOBLE ORGANISATION paid the dividend to a GIBRALTAR (no suprise there) company called RED POPPY in 2 instalments last March according to accounts. Red Poppy is controlled by PHILLIP NOBLE son of Willian Noble, a travelling showman from South Tyneside who started buying bingo halls, casinos and nightclubs in the '60's. (ie, for next to sweet FA)

THE DIVIDEND WAS PAID EVEN THOUGH TH UK COMPANY RECORDED A PRE-TAX LOSS OF £5,700,000. On "sales" of £94,400,000...

((i like it...so you lose £5.7 million over here, but still send £109 million to Gibraltar.. how does that work again???))

Noble Leisure runs a nationwide leisure empire including KWIK TAN salons and SUN VALLEY arcardes.

William Noble died in 1981 leaving the firm to his sons Michael & Philip. Michael died from cancer in 2006.

The family HAS CAMPAIGNED FIERCELEY against developments that threaten it's interests including plans to restore the rival West Brighton pier,,,,,, until it was destroyed by fire in 2003....

it also fought Blackpool's bid for a SUPER CASINO that could've affected Coral Island and has challenged RANK'S plans for a leisure centre in KENT.

DAVID BIESTERFIELD, LEGAL DIRECTOR said "we're a private group.... AND THAT MEANS WE DON'T DISCUSS OUR AFFAIRS WITH THE PRESS"

looks like that 90% is a firkin magic 2090% in their favour after all...

aaamusements.co.uk · Post by **aaamusements.co.uk** » Sun Oct 21, 2012 10:13 pm

Sounds eerily similar to a certain coffee chain that was in the news recently...

lee · Post by **lee** » Sun Oct 21, 2012 11:56 pm

Noble Org have always been a secretive company , I used to work for them for a few years and they never wanted any publicity ,good or bad,they must be worth a few quid though as they have sold loads of arcades

blackmogu · Post by **blackmogu** » Mon Oct 22, 2012 6:16 am

anonamouse wrote: THE DIVIDEND WAS PAID EVEN THOUGH TH UK COMPANY RECORDED A PRE-TAX LOSS OF £5,700,000. On "sales" of £94,400,000...
((i like it...so you lose £5.7 million over here, but still send £109 million to Gibraltar.. how does that work again???))

Say a company has a profitable few years, and amasses £1,000,000 in the bank. They company decides to keep that as capital, and nothing is awarded to the shareholders for those financial years. The next year they have an operating loss of £100,000. There is still £900,000 in the bank, and the company can decide to award that as a dividend payout to shareholders if they so wish.

Shareholders can be individuals or companies. Once a company decides to pay dividends, corporation tax is paid by the company on the amount of the dividend to be paid. So the British government would have taken about £23 million on that dividend payment in tax.

Noels Beard · Post by **Noels Beard** » Mon Oct 22, 2012 11:31 am

It really does surprise me how Amusement Arcades struggle. They have to deal with a dwindling customer base, but so does every other high street shop. They have no stock, and their operating profit can be calculated in incredible detail by the amount of coin through the slot. I'm really of the opinion that if you can't run an amusement arcade, you can't run anything. This is business 101. Simplicity itself. The variables are as small as they can possibly be!

mr lugsy · Post by **mr lugsy** » Mon Oct 22, 2012 12:01 pm

you obviously have no idea.

an fec will have shit loads of stock for cranes, redemption and pusher swag, and will take a great deal of skill, planning and hard work to run optimally.

Noels Beard · Post by **Noels Beard** » Mon Oct 22, 2012 12:18 pm

Shit loads of cheap Chinese crap?! My point is that is so many less variables with an arcade than with other high street businesses. The only thing you've really got to worry about is how many people come through the door! That's it. I don't think pusher swag / crane swag is in any way comparable with the types of overheads most high street stores are dealing with. No perishables, no goods that are likely to fall sharply in value. I stick to my guns here... it really should be so simple!

mr lugsy · Post by **mr lugsy** » Mon Oct 22, 2012 12:36 pm

clueless.

you have no concept of the variables where running a decent fec business are concerned , i'm only going to go overheads because i haven't got time for any more of this twaddle.

"overheads" for an fec are huge.

1. electricity is an expensive commodity......an arcade will use more than pretty much any other kind of business.
2. licenses and permits.......hardly a petty cash concern.
3. staffing costs and bonuses.
4. maintennance costs.... for some equipment is very pricey
5. machine costs , pushers ~10k, fruits 3k plus..and more for b3... some multiplayer units cost more than a 'decent car' .you need new kit every year to keep up with the competition.
6.the cheap chinese crap you're on about will come in at several thousand quid a month aswell.

Noels Beard · Post by **Noels Beard** » Mon Oct 22, 2012 12:50 pm

And how many of those things cannot be accurately forecast at the beginning of the financial year?

Noels Beard · Post by **Noels Beard** » Mon Oct 22, 2012 12:57 pm

The point I'm making is that there shouldn't be much 'surprise' with regard to the profit margins of said establishment. Compare it to running say, a coffee shop. Starbucks is a coffee shop, and they seem to be doing especially well at the moment. Their electricity costs can be accurately forecast, same as an arcades; they too have to think about staffing levels. Coffee machines are expensive too, and expensive to maintain. And if you're going through several thousand pounds worth of Chinese crap, great! That means you've shifted the previous lot...just chalk up the profit, we all know the margin there is huge. I agree that licensing is expensive, but fundamentally you should have thought about all this before you started, and as I say, once up and running the only real variable is how many people visit!

Noels Beard · Post by **Noels Beard** » Mon Oct 22, 2012 1:02 pm

I think you are failing to make the distinction between whether said business is viable (which I think all Arcade owners should have considered), and the variability that stems from that viability once it has been confirmed.

harry2 · Post by **harry2** » Mon Oct 22, 2012 1:24 pm

Nobles diversified and got out of the arcade business at the right time, it appears. One generation ago, the arcade was king of the leisure industry. Apart from going to the cinema or Wimpy bar there very little competition to arcades. The boom in video games also was a real moneyspinner. There were no theme parks, few bowling alleys or ice rinks to go to. There were no laptops, big tvs, video consoles or mobile phones to amuse the children. Arcades were full a lot of the time. It's all changed now. They are like morgues. The recession, smoking ban and FOBT's have helped kill off the industry. If you want to play a fruit machine now, why even get out of bed. Spark it up on your computer/smartphone/tablet instead.

mr lugsy · Post by **mr lugsy** » Mon Oct 22, 2012 1:45 pm

plenty of things cannot be accurately predicted at the start of the year without the aid of a working crystal ball. electricity cost is one.

my original point was to disagree with how easily that you reckon it is to run an arcade, with no experience behind you ,it is pure conjecture.......no matter how articulate you are.

'simplicity itself' did really make me chuckle...and for this ,i do thank you.

mr lugsy · Post by **mr lugsy** » Mon Oct 22, 2012 1:50 pm

harry2 wrote:Nobles diversified and got out of the arcade business at the right time, it appears. One generation ago, the arcade was king of the leisure industry. Apart from going to the cinema or Wimpy bar there very little competition to arcades. The boom in video games also was a real moneyspinner. There were no theme parks, few bowling alleys or ice rinks to go to. There were no laptops, big tvs, video consoles or mobile phones to amuse the children. Arcades were full a lot of the time. It's all changed now. They are like morgues. The recession, smoking ban and FOBT's have helped kill off the industry. If you want to play a fruit machine now, why even get out of bed. Spark it up on your computer/smartphone/tablet instead.

so very true

harry2 · Post by **harry2** » Mon Oct 22, 2012 2:07 pm

Just imagine being a player - Pubs opened at 10.30 closed at 2.30. Opened at 6 or 7 and closed at 10.45 !!! Bookies opened 11.00 - 15 minutes after the last dog race, so about 6.00 in summer and 4.45 in winter. Arcades were 9.00 - 7.00 where I live.