A private equity-backed specialist golf retailer, which is headquartered in Warrington and operates more than 100 stores across the UK and Ireland, has returned to profit on the back of a major restructure and refinance.
American Golf, owned by Sun Capital since 2012, operates a nationwide retail chain of specialist golf equipment stores, alongside an online presence through the American Golf and Online Golf platforms.
In newly published accounts for the year to 24 January 2016, American Golf Discount Centre Ltd made a pre-tax profit of £2.3m on revenue of £98.2m. The company had made a pre-tax loss for the 26-week period to 25 January 2015 of £3.5m.
In March 2015, the wider American Golf group completed a restructure and re?nancing with its bankers and shareholders, reducing the debt structure related to parent company AGDC Holdings from £61m to £23m. Costs associated with the process came in at £644,000.
In the period leading up to the restructure, the group said it had become clear that for it to "maintain the con?dence of its suppliers, credit insurance and other key stakeholders", it needed to address its ?nance structure and required a further injection of cash.
After a hiatus in new shops, American Golf increased its store portfolio by three in 2015, opening in Bristol, Greenwich and High Leigh near Knutsford. The business now operates 106 stores in the UK and Ireland.
American Golf added that it had focused on improving its quality of advice and customer service and reduced discounting. This had resulted in EBITDA, before exceptional items, of £5.7m.
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