In January the group opened a £1.8 million "Family Destination Unit" in Horsham, which contains a Cue sports club, late night bar, ten-pin bowl and children's play area.

The company said customer spending on leisure is picking up following difficult conditions last year and early this year.

Chief executive Martin Callansaid: "Our businesses have performed well, reflecting the continuing success of our strategy of investing in mass market, low ticket, cash businesses in the leisure sector."

Waterfall's pre-tax profits for the 26 weeks to April 3 were £1.7 million, up from £1.2 million. Turnover was £11.9 million, up from £8 million.

Sales in the group's entertainments division, which runs ten late night bars and clubs, were up 13 per cent to £1.8 million.

And its Cue Sports division, which owns 55 snooker and pooloutlets saw sales increase by 31 per cent to £8.4 million, boosted by the recent snooker World Championship.

The group launched a £40 million hostile takeover bid for pool hall and nightclub group European Leisure at the end of March.

But European is recommending a rival £30.9 million offer from Allied Leisure, the Burger King to ten-pin bowling group.

Aspokesman for Waterfall, which has a market value of around £23 million, said the group would be issuing further comments, probably this week, in support of its bid.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.