Ardent says bon voyage to marinas business

Ardent Leisure is putting its d'Albora Marinas business up for sale as part of a major shakeup of the company's businesses.

Australia's biggest marinas operator has been put up for sale as part of a major shakeup at Ardent Leisure.

Ardent is selling its d'Albora Marinas business and planning to convert its AMF and Kingpin bowling alleys into family entertainment centres.

Development works are also slated for the group's Dreamworld theme park on the Gold Coast, along with a review of Ardent's Goodlife health clubs chain.

The news was welcomed by investors, with Ardent's shares leaping by 11 per cent.

d'Albora has three marinas in Sydney Harbour, two in Melbourne and two on the NSW north coast.

Earnings from d'Albora during the first half of 2015/16 sank by 5.7 per cent due to the refurbishment of The Spit Marina in Sydney and construction works near one of its marinas in Melbourne.

When it announced its results in February, Ardent said it was reviewing the marinas' growth potential and development opportunities, adding that it expected to see improvements in the business next financial year.

Chairman Neil Balnaves said the sale of the marinas would allow Ardent to focus on the development of its successful Main Event family entertainment centres in the US, where it will open 11 new outlets in fiscal 2017.

The Main Event business has been the major driver of Ardent's earnings in recent years.

Ardent hopes to repeat the success of Main Event in Australia by converting its chain of AMF and Kingpin bowling alleys into multi-attraction family entertainment venues.

"Over the next three years, the group plans to exit older, lower-returning sites and achieve growth through the selective development of existing assets such as the flagship Kingpin at Crown Casino, along with the acquisition of new sites for high-returning amusement games arcades," Ardent said in a statement.

Ardent will also carry out further development at Dreamworld ahead of an expected increase in tourists to the Gold Coast, particularly from Asia and during the 2018 Commonwealth Games.

Meanwhile, the group will review options for its health clubs business and continue with the program to convert them into 24-hour operations.

First half earnings for the health clubs fell by eight per cent, while the bowling division and Main Event lifted theirs by a fifth and more than a third, respectively.

"These decisions follow a period of review over the last six months and position the group as a premium family recreation and entertainment company with a singular focus on delivering outstanding customer experiences for our 17 million loyal patrons," Mr Balnaves said.

"The marinas are unique assets with outstanding facilities in excellent locations and we are confident they can be even further developed in the hands of a new owner."

Mr Balnaves added that with the expected growth of Ardent's US family entertainment business, the board will take steps to allow a gradual rebalancing of the company's share register and carry out a review of its stapled security structure.

Ardent's shares closed 23.0 cents, or 11.79 per cent, higher at $2.18.


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Source: AAP



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