A typical Quicksilver location on a UK high street is 1,500 sq ft of gaming floor holding around 40 machines, some 98% of which will be low tech Amusement with Prizes (AWPs). Talarius plc, which recently bought RAL Holdings for £32 million (US$56.4 million) is leading the high street gaming sector away from the ‘amusement arcade’ image and into the world of Adult Gaming Centres (AGCs). RAL was originally formed from divisions of Rank and Ladbrokes and was the subject of a management buyout in 1996.

At present there are 142 Quicksilver AGCs and Talarius is introducing some Section 16 machines, which relates to gaming machines with £500 cash and unlimited non-cash prizes, similar to the FOBTs at Licensed Betting Offices. However, the company has found that generally customers prefer the familiar low tech AWPs. Talarius has one of the largest single high street gaming machine estates in the UK, some 5,500 machines. In April 2005 it raised £5.5 million (US$9.7 million) as a newly established AIM company on the London Stock Exchange.

For the 28-week period to 16 July 2005, maiden interim results for Talarius show an operating profit of £2.3 million (US$4.7 million), a year-on-year increase of 6%. Turnover was up 7% to £21.3 million (US$37.5 million) and EBIDTA up 9% to £4.9 million (US$8.6 million). The figures cover the Quicksilver locations and the online gaming portal Cyberslotz. Cash players of Cyberslotz have more than doubled in 2004 and accounted for 4% of business. The interactive business continues to grow and has recorded sales 60% up year-on-year.

Nick Harding, CEO of Talarius, commented, “It has been a successful period for the company. The acquisition of Royals, made in July, has been integrated, with significant synergies identified, giving us a strong and growing market leadership in high street AGCs. The ultimate enactment of the Gambling Act will encourage further consolidation and we have built a strong team to deliver the group’s strategy in this exciting market context.” (E-09.28.05)

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