Brulines is monitoring possible acquisitions

Dec 2 2009 By The Journal

PUB and leisure data monitoring company Brulines says it is riding out the recession and keeping an eye on potential new acquisitions.

The Stockton company’s turnover increased by 11.3% to £9.9m in the six months to September 25, although exceptional costs resulted in a pre-tax profits dip from £2.17m last year to £1.9m.

But the group, which collects data in pubs, petrol forecourts, vending and gaming machines, is increasing its interim dividend to 1.63p from 1.55p and says it is pleased with its "robust" performance in the recession-hit leisure industry.

It is confident the recent deal with pub and brewing giant Greene King, which is installing Brulines’ i-draught monitoring system throughout its 1,400-strong estate, will attract more customers.

Chief executive James Dickson said: "We’ve made excellent progress with i-draught. There’s been heightened interest since we’ve announced the Greene King roll-out. For the company to roll it out across its estate, that’s a pretty strong endorsement.

"We really believe we can replicate the success of Brulines with the roll out of i-draught across a number of different customers in pubs and roll out to a wider leisure sector."

The results include the first full six months’ figures for last year’s acquisitions – vending market data-capture company Vianet and Edensure, which records petrol forecourt information.

"Revenues are up on the back of a full half-year with Vianet and Edensure that we didn’t have in the first half of last year. The core Brulines revenue is about flat," said Mr Dickson.

"Vianet made around a £100,000 loss [but there has been a] turnaround at Vianet – we spent the first half concentrating on revamping the commercial prospect. In the vending business, there are other big interesting opportunities to pursue.

"On the petrol forecourt side, we are pretty close to break even. We see strong growth. There is a £20m market we can target in the UK, even if we just get a small slice of that."

The company has been on a spending spree recently, snapping up Sunderland-based Edensure and Scottish firm Vianet in 2008, and acquiring gaming business Coin Metrics in 2007. It is continuing to chase a takeover deal with Universe Group, which provides electronic payment, transaction and loyalty systems for the petrol forecourt and global oil sectors.

But Mr Dickson said much of Brulines’ immediate projected growth would come from its existing businesses, although he did not rule out further acquisitions.

"The growth in our business will mainly be organic," he said.

"There are potential acquisitions on the radar and we will continue to track those. None of our strategies or plans we have for the leisure or forecourt areas are dependent on making acquisitions. "

He revealed the company, which also operates in the US market, has signed a European client but was unable to give details due to a confidentiality agreement.

Brulines, which employs around 250 people, has also strengthened its middle and senior management tiers in the last six months.

Mr Dickson said he was confident he now has the right team in place to continue growing the business.

"The recession has impacted the leisure sector more than most," he said.

"We’ve ridden it out and we are confident we can continue to do that in the second half. We are excited about the progress we have made."