Chips are down for LCI as lucky gamblers hit casino

Published on Wednesday 6 April 2005 11:42

LUCKY punters enjoying a winning streak at a key casino owned by London Clubs International have led the company to warn on profits.

The firm said its operating profits would be "significantly below" last year after suffering its worst run of results for around five years at Les Ambassadeurs, one of its five casinos serving high-rollers in the city.

With trading at two other key sites in London also disrupted by recent refurbishment work, LCI said its profits in the six months since September 26 had been virtually wiped out.

The group suffered delays in relocating its high-end Sportsman casino to new premises in London, and its closure for four months meant the site had not contributed to profits in the year to March 27.

Losses generated by its Fifty joint venture in the UK capital would also be higher than the previous year after trading was badly disrupted by refurbishment work, the company added.

Fifty became fully operational from March and business levels are growing at the club, which has two restaurants, two bars, a nightclub, betting lounge and a gaming room.

In contrast to its woes in London, LCI said its provincial casinos were trading well and it was winning more money from gamblers in Southend and Brighton than the previous year.

In addition, its Emerald Casino in South Africa achieved excellent results and was now materially contributing to profits.

Analysts at brokerage Panmure Gordon said the trading update from LCI should be seen as a "blip" rather than signalling any long-term trend.