The A & S Leisure Group Limited

Strategic Report Year ended 30 September 2025 The directors present their strategic report of the group for the year ended 30 September 2025. Business review and key performance indicators Group turnover has remained static during the year and there was a modest reduction in gross profit. Higher gaming duty rates, together with significant increases in employment costs, increased overheads by 7.6% and contributed to a fall in operating profits. Further refurbishment work was undertaken to casino properties during the year in order to update and improve the customer experience and drive attendance. Additional advertising and promotion costs were also incurred in this regard in the year. The results for 2025 against the previous year are: 2025 2024 £ £ Turnover 47,446,103 47,649,583 Operating profit 5,814,838 7,243,031 Administrative costs 14,367,285 13,345,237 Profit before tax 6,238,458 7,661,776 At the end of the financial year, both the company and the group had substantial net assets of approximately £37.5 and £52 million respectively, and the group's ratio of current assets/current liabilities for 2025 is 2.82 (2024 - 2.85). Whilst the directors are confident of the future of the company and its subsidiaries, the current state of the UK economy, continuing global hostilities and international trade disruptions will continue to put pressure on business results. The group has strong cash reserves to act as a cushion against any deterioration in the trading position, and efforts continue to reduce costs wherever possible. Principal risks and uncertainties The company and its subsidiaries are subject to the normal risks of running commercial businesses. However, there are a number of more specific risks relating to the different activities of the group companies. The company and its main subsidiaries Sheffield Sports Stadium Limited and The Players Club UK Limited, as operators in the leisure industry, are subject to various risks, which include:- * Breach of regulatory rules regarding licences. * Failure to adhere to gambling regulations and/or internal controls. * The effect of additional gambling legislation and an increase in the casino population/other forms of betting and gambling. The directors of the company and its subsidiaries seek to minimise the foregoing risks, where possible, by a system of strong internal controls and monitoring, complete with the use of independent advisers where appropriate.