ALTHOUGH Stanley Leisure shares did not celebrate after the results, there was no attempt by chairman Leonard Steinberg to hide his near-euphoria as to current year prospects.
After a maintained interim dividend, the final has been raised by 12% to 4.65p for a 6.65p total, and a one-for-one free share issue, Britain's fourth-largest bookmaker and third-biggest in the casino sector saw pre-tax profits fall 13% to #14.7m because of a decline in the fortunes of the horse-racing activities.
The long, hot summer last year led to both smaller fields and the number of favourites winning - Mr Steinberg reckons the ratio rose from 28% to about 32% while the atrocious winter wiped out a full week's racing after Christmas costing the profits line about #750,000.
But in recent weeks there has been a decided change for the better as racing margins have improved, as has turnover, helped to some extent by the reduction in betting duty from 10% to 9%. Inevitably the bookies are saying that is not enough and are looking for a similar reduction in the next Budget.
Scratchcard sales are also losing popularity with punters increasingly attracted to betting on the Irish lottery.
The Euro96 football competition brought in turnover of #1.65m with a gross margin of over 30% which has provided a flying start and is followed up by the introduction of up to two amusement with prizes machines in each of the 520 or so betting shops, including the 74 brought in with the #15m acquisition of Gus Carter.
Machines introduced into the 21 casinos on June 20 have so far performed exceptionally well and could boost divisional profits by around #1.5m for the remainder of the financial year.
Casino profits rose 7% to #10.5m helped by the #420,000 contribution from the two Berkeley casinos bought in April last year for #7.7m cash which doubled representation in both Edinburgh and Glasgow.
Attendances are marginally ahead with around 35% of customers being female in stark contrast to the almost entirely male-dominated betting shops while the average amount spent has risen by 5.4% to #98m.
Stanley is on the lookout for more acquisitions with a substantial amount of bank facilities already in place.
Current year profits should reach #19m assuming no significant weather problems and the shares at 502p remain excellent value.
FACT FILE
Final1995-961994-95
Turnover#318m#293m
Pre-tax profit#14.7m#17.0m
EPS18.6p21.2p
Dividend6.65p6.15p
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