Boylesports profits jump 627% to €591,732

BOOKIES Boylesports saw profits rise by 627% last year to just under €600,000.

The Dundalk-based company, which is attempting to become the largest Irish bookmaker, made just €81,353 in 2003, but the opening of new shops helped to boost profits, which rose to €591,732 in the year to the end of June 2004. Boylesports said: "the company continued to expand during the year with the opening of an additional eleven licensed betting offices.

"The company is committed to continued investment in its services and facilities in a determination to offer customers the very best possible range of services." The family-owned business has expanded rapidly in recent years and is aiming to have 100 shops open by the end of next year.

That would leave the company within reach of market leader Paddy Power, which has about 140 outlets.

Last year, it overtook Ladbrokes as Ireland's second-largest betting group by shop numbers, though Ladbrokes was more profitable. There has been speculation that Boylesports, founded in 1989, may attempt an acquisition with attention focusing on Northern bookmaker Sean Graham, though nothing seems to have come of this.

If Boylesport was seeking to go down the acquisition route for expansion, another opportunity would be the 50-plus shops owned by Stanley Leisure, the subject of a takeover by William Hill, which does not operate in the Irish market. If Hills bought Stanley, it may be tempted to sell the Irish shops, which made profits of €2.2m last year.

Turnover at Boylesports for the year fell from €223.2 million to €219.8 million. Despite this slip, the underlying performance of the company improved. According to the company's latest accounts, the gross win margin the amount of turnover left after paying out on winning bets improved from 11.8% to just over 13%.

At the end of its financial year, the company retained €5.4 million in profits.

The accounts also show that the company would have earned more had it not been for the price war among bookies, which saw most companies pay the betting tax for customers. During the period, going tax-free cost Boylesports €2.47m.

As result of adding new shops to its estate, the workforce went up from 315 to 420, pushing the annual wages bill to €10 million.

The company's three directors, John, Kerry and Kathleen Boyle, saw their pay fall from €100,879 to €81,690. The accounts also disclose that the company rents properties from John Boyle and he was owed €288,541 by the company.

While the return to rising profitability will be welcomed by Boylesport, it has a long way to got to match the profitability of Paddy Power. It made €32m in profits last year and had turnover of €1.16 billion.