British casino and betting operator Stanley Leisure posted below-forecast first half profits today as it covered itself against outstanding debts from punters who have yet to pay up.
But the group, which has a number of shops in the Republic, said the British government's abolition of betting tax late last year looked like it had boosted turnover at its betting division, in a trend that was likely to continue during the remainder of the year.
We remain confident in the outlook for the year as a whole, said chairman Leonard Steinberg as he unveiled pre-tax profits before goodwill up one per cent to £15.1 million sterling for the six months to October 26th.
Analysts had forecast profits of up to £16.5 million.
The firm said pre-tax profits would have been in the region of £17 million if it had not taken out provisions against outstanding debts it was confident of eventually recouping.
Shares in Stanley Leisure, which have outperformed the UK leisure, entertainment and hotels sector by 40 per cent in the past 12 months, were down 0.5 penny at 272p this morning - valuing the business at around £305.5 million.
Turnover grew nine per cent to £363 million, reflecting an increase of 13 per cent in the gaming division and eight per cent in the betting division.
But operating profits were down five per cent after the group took the hit against outstanding debts in its London casinos.