Weather Lottery’s goal to expand into five-a-side

The Doncaster-based group said it has agreed terms to buy Soccerdome Limited, which owns and runs a five-a-side football facility in Nottingham, for £375,000 in shares.

TWL said it is keen to become a major player in the five-a-side football industry, and has hired Soccerdome’s owner Reginald Brearley as a consultant to help develop other five-a-side football facilities in the UK organically and through acquisition.

Chairman Lord Razzall said: “We are pleased to have agreed, on what we believe are favourable terms, the acquisition of a sound business for which there is continuing demand. In recent years five-a-side centres have become a major venue for the social leisure and exercise activities of the population.

“TWL is keen to develop as a major player in this market. We welcome the experience and knowledge of the vendor to help us achieve this”.

The deal will be funded with the issue of 75,000,000 new ordinary shares at an issue price of 0.5p per share. Soccerdome made an operating loss of about £10,000 in the year to January 31 and had gross operating assets of approximately £505,000.

Mr Brearley was one of the founding investors and developers of Glasgow Open Air Leisure Services, which went on to become Goals Soccer Centres plc and become a market leader in UK five-a-side football facilities.

Mr Brearley is also the former chairman of Sheffield United Football Club and TWL said his experience should be valuable in developing the company’s broader links within the football sector.

“He has demonstrated his confidence in the future of the business by agreeing to an all share consideration,” said the company.

Mr Brearley will hold 22 per cent of the company if the acquisition of Soccerdome is completed.

TWL said the acquisition will be a further expansion into the football leisure industry, following the company’s expansion in this sector last year.

TWL said the deal complements its other activities, in particular the lottery business, adding there are “significant cross-selling opportunities” for the company’s lottery and gaming products to the users of Soccerdome facilities.

“The board also believes that the acquisition of a business with a tangible asset base in the sports and leisure related sector will complement the more volatile gaming and lottery operations,” it said.

Last week the company revealed £321,000 losses for the six months to the end of January, compared with £13,000 profits a year earlier. Profits were driven down by an £80,000 fraud provision and problems accessing football clubs’ databases. Its sales lifted to £668,000 from £633,000 a year earlier.

The company, which is debt-free, said last week it envisages a fundraising to raise money for acquisitions.