Boylesports profits dive to just €330

BOOKMAKERS Boylesports saw its profits fall to just €330 in 2002, its latest accounts show.

Boylesports, which is owned by John Boyle, recorded after tax profit of €330 in the 14 months to the end of June 2003, down from a profit of €1.5 million the previous year.

The heavy fall comes as turnover rocketed from €100.9m to €223.2m following a major expansion at the company. Administration expenses shot up from €11.5m to €25.7m, faster than the rate of turnover growth.

Boyles has ramped up its activities over the past three years and has spent heavily on refurbishing its 75 shops and on its online and telebetting arms. The company has also increased its marketing and advertising to increase its share of the €2 billion betting market.

The accounts for Boyle Bookmakers Limited show that operating profits for the period fell from €2.15m to €662,071.

No reason was given in the accounts for the dip, though the company's expansion plans would require significant investment. Capital expenditure rose from €4.6m in 2002 to €7.2m last year.

Retained profits at the firm, the third largest betting chain in Ireland behind Paddy Power and Ladbrokes, were flat at €5.04m.

Boylesports has set its sights on becoming the number two player in Ireland and has targeted having 100 shops open within the next two years, which would put it behind Paddy Power, which has 137 retail shops.

Boyles added 17 shops to its estate in the 2002/2003 period.

The accounts also show Boylesports has cash at the bank of €806,414 and shareholders funds of €5m.

The increase in the number of outlets saw its staff number rise from 211 to 315. The wages and salary bill at the company rose from €4.7m to €9.4m, giving an annual average salary of just under €30,000.

The company's three directors - John, Kerry and Kathleen Boyle - saw their pay fall to €100,879 from €148,528. No dividend was paid to the shareholders.

Competition between the bookmakers has intensified in recent months, with all the main chains increasing the number of tax-free stores. Stanley Racing was the first to go tax-free across all its 50-plus betting shops in a bid to gain market share.

Stanley Racing had a poor year, with profits for the year to April 27 2003 falling from €3.88m to €2.61m.

Meanwhile, Ladbrokes saw its operating profits in Ireland rise by 36%. It said its operating profits for the year to the end of December 2002 were ahead by €1.8m at €6.7m.