Implementation of the triennial review will cost Sceptre Leisure around £2m in its first three months, said CEO Ken Turner.
“There are many stages for Sceptre in planning for a triennial implementation. Firstly we have spoken to manufacturers regarding models that will be upgraded to the £100 jackpot. We have then spoken to our customers and advised them of the available £100 models and discussed timescales,” Turner told Coin-op Community.
“We have reviewed our AWP estate and agreed internally which models we wish to convert this is not as easy as it seems as with managed estates machines are usually around 12 months old, whereas with tenanted estates machines are usually up to three years old and with any implementation there has to be a blend of new machines and converted models. With the managed estates that usually work on a six per cent to eight per cent machine injection, the process for conversion is shorter. With tenanted estates that are working on two per cent to four per cent injection, the process can take considerably longer.
“We have then confirmed with manufacturers the number of conversion kits required. We have also ordered advance stock of some brand new £100 ready models to start the upgrade programme. The risk for this is always with the operators and at no point have any models been tested or the re-worked mathematics checked within the field on the converted machines. The additional cost to Sceptre for the first three months of a triennial review will be over £2m.”
Turner believes however, that ultimately the triennial will move the sector forward.
“Machine income is such an important component of the profit and loss account of any pub retailer and £100 is a major milestone for AWPs. We believe, as do the vast majority of our customers, that the uplift in income could be substantial.”
