Liverpool-based Stanley Leisure released its last set of annual accounts containing a significant bookmaking influence.
Following the June 18 sale of the 624 betting shop estate to William Hill for £504 million, which generated a profit on disposal of £210m and resulted in a return of £325 million to shareholders, Stanley Leisure is primarily a casino operator and will focus on consolidating its position as the largest operator in the UK.
Group turnover was up 25 per cent to £2.07bn, while profit before tax and goodwill amortisation fell 4% to £40.1m.
“Overall the Group achieved satisfactory results this year. The Gaming Division produced strong results while the Betting Division experienced a long run of poor sporting results over the period,” said Chief Executive Bob Wiper.
Betting division turnover rose 27% to £1.88bn due to fixed odd betting terminals, while gross win fell marginally to £178.4m and profit before tax and goodwill amortisation slumped 24% to £25.9m due to a poor run of sporting results.
“After the record profits of the previous year, this was always going to be a challenging year, but despite longer opening hours and an increase in stakes, the results have been disappointing,” added Wiper.
The internet betting operation carried on in the red losing £1.7m and ceased trading on July 9.
The international betting business experienced a long run of poor sporting results throughout the year, especially on soccer, which caused the profit to fell from £6.3m to £2.9m.
However, having established a low cost and low capital business, the company retained its interest in the international operation. Stanley believes it has significant potential and will continue to work with its partners to achieve further expansion into new territories once the remaining legal matters are resolved.
The company outlined plans to invest more than £100 million over the next five years on expanding its existing 41 casinos and applying for new licenses.
Stanley has lodged applications for five new licenses under the 1968 Act regulations and intends to bid aggressively to win some of the 17 new casino licenses, including a so-called regional supercasino, that are due to be selected in 2006 under the new Gambling Act.
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