SHARPLY lower betting-shop profits hurt the Stanley Leisure racing-to-casinos group in the 12 months to April 28th. Competition from the British lottery, scratch cards and a run of winning Irish horses on the track were blamed.
Although lower racing profits were partly offset by record casino results, group pre-tax profits declined nearly 13 per cent to £14.8 million sterling on turnover up 8.5 per cent at £318 million. Earnings per share fell over 12 per cent to 18.6p.
Total dividends were 8.1 per cent higher at 6.6 per cent and there is to be a one-for-one scrip issue.
Profits of the racing division taking in 50 outlets in the Republic and 28 in Northern Ireland fell 29 per cent to £7.2 million on turnover up 7.6 per cent at £277 million.
On a like-for-like basis excluding acquisitions, the setback was much worse with profits down 35 per cent at £6.6 million on turnover marginally improved by 1.5 percent at £261 million.
Chairman Mr Leonard Steinberg said the racing division had "a most difficult year" affected firstly by the British lottery and its scratch cards taking away low stake business and restricting turnover and margins.
The margin squeeze was accentuated by the unusually large number of races won by Irish horses, notably at the Cheltenham meeting, heavily backed by punters both in Ireland and England.
Financial results of the group's Irish betting shops were particularly affected. Current-year trading is expected to see improved results at the trading division. Weekly sales of the British lottery's scratch cards are now running at between £16 and £18 million.
British betting duty has been reduced by 1 per cent to 6.75 per cent in recognition of the fact that the betting industry has been affected by British lottery products.
