Casino operator London Clubs International, which recently rebuffed a takeover bid, was upbeat about its future yesterday after scaling back half-year losses.

The group said overall business levels at its London casinos were "well ahead" of the previous year while its overseas clubs had also performed well.

The Middle East benefited from residents choosing to stay in the region in the summer while the Emerald Safari Resort and Casino in South Africa saw "significantly" higher levels of trading.

It meant group turnover pushed ahead from £69.5 million to £75.2 million in the six months to September 30 while operating losses were cut back to just £279,000.

Last year's results were distorted by LCI's costly involvement with a gaming complex in Las Vegas, which pushed the group's debts to £240 million.

The group's lenders agreed to extend its debt facility until June 2004 and pump in an additional £15 million. Then, earlier this month, LCI received a takeover approach from rival Stanley Leisure.

LCI said the Liverpool-based group had made a "highly-conditional" indicative proposal it had decided not to pursue.

Chairman Michael Beckett hinted the group could be open to further offers, saying: "The board's primary focus is to maximise shareholder value and it will continue to consider all strategies that meet the objectives."

But looking forward, he said current trading was ahead of expectations with new outlets in Southend and Brighton starting well.

The two clubs are LCI's template for the expected deregulation of the industry.