Profitability of Irish betting shops owned by Stanley Leisure is being hit by growth in tax free phone betting services provided by bookmakers based in the Isle of Man. Commenting on the group's financial results, Mr Mike Kershaw, chief executive of Stanley Leisure, said another factor depressing the group's betting profitability in Ireland was the run of successes for Irish racehorses at Cheltenham.

But weaker Irish results failed to prevent profits hitting record levels during the 53 weeks to May 3rd. Group pre-tax profits rose 23 per cent to £23.9 million sterling, mainly due to strong organic growth in the racing division and improved casino profits. Turnover rose 12 per cent at £455 million.