Investment Column: Odds stacked against Stanley
Thursday 15 January 1998
However, pre-tax profits rose 37 per cent to pounds 10.1m for the six months to October, causing the share price to perk up 9p to 273.5p.
Casino profits did fall 9 per cent to pounds 4.73m. However, its pounds 1.5m scheme to solve a staffing crisis is working and the business looks to have turned the corner. The bookies chain can also look forward to a big one-off boost from the World Cup. Perversely, the takeover of the Coral betting chain by Ladbroke should help business. Ladbroke is unlikely to compete with Stanley for any new sites on the market and competition authorities may even force it to put more bookies up for sale.
But Stanley's problem is that organic growth in both its divisions will be hard to come by. The Government is unlikely to allow operators new slot machines for at another year at least and probably much longer, a move which had promised to increase Stanley's revenues dramatically. As for betting, most of the growth has come from new numbers games and slot machines but the prospect of further growth here is somewhat limited. It is a worrying trend that the number of betting slips taken has actually fallen in the last six months.
Analysts forecast pre-tax profits of around pounds 24m-pounds 25m for the year to April, putting the shares on a prospective p/e ratio of 18-19.
Given Stanley's strong management team, which is armed with a pounds 40m war chest, the rating is justified but the upside looks relatively limited. Hold.
- 1 Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
- 2 Novel Scarlett Johansson tried to ban, Grégoire Delacourt’s The First Thing You See, to be published in UK
- 3 A pint of water every day is the key to losing weight, scientists say
- 4 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
- 5 Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
Nazi gold train: 'Significant' discovery made in Poland
Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
TTIP controversy: The European Commission and Big Tobacco accused of cover-up after heavily redacted documents released
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...
£20400 per annum: Ashdown Group: An established and highly reputable organisat...