London Clubs International today said it was set to cash in on the proposed relaxation of gaming laws after increasing profits by nearly 12%.

The group said it was in good shape to benefit from the draft Gambling Bill, which includes plans to allow casinos to install more slot machines with bigger jackpots, to relax limits on trading hours and to allow alcohol on the gaming floor.

It is expected the legislation could gain Royal Assent by September 2005.

LCI said annual pre-tax profits before one-off items rose to £9.5 million from £8.5 million in the year to March 28.

However, bottom line pre-tax profits slipped to £2.5 million from £5.3 million previously after accounting for £7 million of costs related to Aladdin, the troubled Las Vegas joint venture that caused LCI debts to spiral last year and is now in the hands of a group of US banks.

London Clubs International runs seven casinos in the UK and four overseas.

Its portfolio includes the Golden Nugget, Rendezvous, Sportsman and Les Ambassadeurs casinos in London, as well as sites in Brighton and Southend and a planned casino in Manchester.

The group said its London estate continued to generate excellent profits following an exceptional period last year.

Les Ambassadeurs achieved a record level of gaming wins and the Rendezvous continued to trade well.

However, the Sportsman was affected by events in the Middle East and its impending move, while the Golden Nugget had another good period, but did not match the prior year's record performance.

LCI's provincial casinos, including Brighton and Southend, both increased their contributions to group profit.

The company's overseas operations in Egypt, Lebanon and South Africa had a good year.

Wednesday July 28, 2004