Bacta releases shocking industry figures
UK trade body for owners and operators of amusement arcades bacta has released the results of a recent member survey, revealing how high ongoing costs and drastic loss of revenue are driving businesses to the brink.
“We carried out the survey in order to illustrate to Government that we require additional support now in order to keep our members’ businesses from going under,” says John White, bacta CEO. “We need a 5% VAT rate from Treasury and have met with them to discuss this in a positive meeting last week. There must be an extension of rates relief and in particular we must ensure the supply chain benefits from any support available. We are also asking for an assurance that AGCs will be able to open in Tier 3 in due course.”
John has forwarded the figures to DCMS this week and added that some of the government’s previous measures relating to CIRS – have actually already helped significantly.
“Interestingly the job losses, whilst still horrendous, are nothing like the prospective job losses we forecast before the extension of the CJRS, which were on average around 50% of the workforce,” he adds. “The CJRS has definitely saved jobs and will continue to do so if it remains in place in some form as the economy gets going again.”
While the loss of revenue to members’ businesses is devastating – it is the high continuing costs that compounds the problems and this is where bacta hopes Governemnent might remove some of the burden.
“It is shocking how high continuing costs are, as a percentage of the business costs faced during a ‘normal’ year. Despite cost cutting the on-going cost base is very high and can only be met from reserves or loans in the absence of any revenue. Businesses are running on fumes and many have said to me that they probably have not many more weeks left before they will go under,” says John.
Here’s the summary of the results:
Family Entertainment Centres:
Fall in revenue 57.1%
Job losses 16.2%
Continuing cost base compared to usual 59.8%
Suppliers to Pubs and Clubs:
Fall in revenue 71.4%
Job losses 9.2%
Costs as percentage of usual 53.9%
Adult Gaming Centres:
Fall in revenue 55.9%
Job losses 10.1%
Costs as percentage of usual 56.1%
Manufacturers and Distributors:
Fall in revenue 59.1%
Job losses 13.3%
Costs as percentage of usual 62.1%