Snooker and ten pin bowling operator Georgica said it expects substantial shareholder value to be released in 2007 through either refinancing or by a disposal of part or all of the business.

The comments came alongside results for the 53 weeks to January 1 which showed a fall in pretax profit to £2 million from £3.5 millon for the comparative 52 week period.

Turnover, at the company which operates five bowling halls and 15 snooker centres in the Midlands, tumbled from £155.99million to £129.0 million.

The board said trading has improved recently after a relatively dull autumn.

Although same outlet sales rose by only one per cent for the year, they increased by 2.1 per cent over the three week holiday period which ended on January 8.

The trend was maintained in the first three weeks of January, with sales ahead by 3.1 per cent.

Georgica said it had access to enough funds to complete the refurbishment of its estate, substantially expand the number of cue sports and tenpin bowling outlets whilst at the same time continue to buy in shares for cancellation, which it will do from time to time.

"We have made good progress in assessing the redevelopment potential of our freehold properties, a process that is expected to yield considerable sums from the sale of sites over the next 18 months," the board said.

Georgica said the makeover at Tenpin continues apace with six outlets refurbished during the period in addition to the three in 2004. The refurbishment programme is expected to be completed by the end of this year.

It said competitive trading and higher energy costs had resulted in a slightly lower outcome for 2005 than was anticipated.

It has taken action to offset the higher costs and profitability should improve in the current year, it added.

Rileys, the cue sports company, is expected to open or contract to open or acquire a further 20 sites in 2006.

Similar steps have been taken to improve profitability through pricing and cost saving initiatives including relocating the administrative office to smaller cheaper premises later this year.

Chairman Don Hanson said: "2005 was a year of great progress for Georgica. In May, the senior debt facilities were successfully renegotiated and, in June, a £60 million floating rate note was placed.

"Together these will enable us to complete the refurbishment of our estate, substantially expand the number of cue sports and tenpin bowling outlets whilst at the same time continue to buy in shares for cancellation."