Stanley Leisure profits drop by 4%

Britain's Stanley Leisure posted a 4 per cent fall in underlying annual profit today as unfavourable sporting results at its …

Britain's Stanley Leisure posted a 4 per cent fall in underlying annual profit today as unfavourable sporting results at its recently sold betting operations offset strong trading at its casinos.

The firm, which sold its UK betting shops to rival William Hill in June, said its casinos were trading satisfactorily so far in its new financial year, while its international betting operations had made a quiet start.

Profit before tax and goodwill was £40.1 million sterling in the year to May 1st. The firm proposed a final dividend of 7.5 pence a share, taking the total for the year to 10.5p, up 11 per cent.

Profit at provincial casinos was up 2 per cent. Underlying profit at betting operations, which have been sold, fell 17 per cent, and were down 54 per cent at international outlets, largely due to a string of unfavourable soccer results.

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Stanley Leisure shares have outperformed the UK leisure sector by around 20 per cent since the start of the year, after it announced plans to return £325 million of cash to shareholders from the sale of its UK betting shops.

The shares closed at 540p on Friday, valuing the business at about £702 million.