Horses disappoint Stanley

THE Grand National debacle this year dented profits at Stanley Leisure, the betting shop and casino operator.

Cancellation of bets on Britain's most famous steeplechase cost Stanley about pounds 250,000 in lost profits.

In all, profits from Stanley's betting shops slipped by 7 per cent to pounds 5.8m. The problem with the Grand National was compounded by a lower take through the year as punters had better betting luck in 1993 than in 1992.

Stanley was also disappointed by the average bet, which rose slightly from pounds 3.38 to pounds 3.45.

The company's 17 casinos, however, more than made up for the setbacks in racing. For the year to 2 May taxable profits were 3 per cent higher at pounds 8.1m, up from pounds 7.8m.

Operating profits from casinos rose from pounds 5.9m to pounds 6.7m. All its casinos are in regional cities. The company said it was not keen to open outlets in London because gamblers in the capital bet less predictably, providing an uncertain profit stream.

Stanley said cost control was responsible for the better performance from casinos. It has cut back on complimentary hospitality given to customers. The average spend per head was pounds 85.

A small profit from Stanley's two snooker halls - which lost money in previous years and which the company said it was prepared to sell - also helped.

Despite the mixed picture, Leonard Steinberg, chairman, was upbeat about current trading. 'Turnover has gone up and we believe that the betting industry has come out of recession,' he said.

Earnings per share rose to 12.8p from 12.3p. The dividend was up 4 per cent to 4.3p. The shares were unchanged at 221p.