London casinos hinder progress of Stanley Leisure

Gaming group Stanley Leisure was out of luck at its London casinos today following a dip in attendance levels and revenues.

While its portfolio of 37 regional sites has performed in line with expectations, Stanley said returns at its three “high-roller” casinos in Mayfair and one at South Kensington had been under pressure.

In the London estate’s busiest trading period, Stanley said visitor levels and sales had suffered in line with other capital-based leisure and retail firms which have been affected by factors including the London bombings on July 7.

A statement at the Liverpool-based company’s annual meeting said: “It is, of course, too early to tell whether this is a temporary issue and as always in our London casinos, this position can change very quickly.”

Chairman Lord Steinberg also said Stanley had progressed a five-year investment and development plan aimed at benefiting from new gaming rules.

As previously announced it is making five new licence applications and considering the extension or relocation of a further nine casinos.

The developments – part of an investment plan worth £100m (€148m) – could add more than 50% to Stanley’s existing gaming floor space.

Stanley, which recently sold its betting shops to William Hill for £504m (€745.9m), operates Crockfords, The Colony Club, The Mint and The Palm Beach in London, in addition to sites in cities including Bristol, Liverpool and Birmingham.

Paul Leyland, an analyst at Seymour Pierce stockbrokers, said concerns remained about the company’s exposure to the high-end gambling market.

He added: “It is far too early to call a ‘trend’, or downgrade numbers, but the news does underline our view that earnings are highly volatile and risk is on the downside.”

In July, Stanley announced a 4% fall in underlying profits to £40.1m (€59.4m) for the year to May 1.

The shortfall came despite a 25% hike in turnover to £2.08bn (€3,1bn) and was mainly due to a run of luck by punters at its betting shops.