SHARES in north west gaming company Stanley Leisure slumped over 20 per cent today after the Liverpool firm sounded a profit warning.

The stock slid 22 per cent, or 81p to 286.5p, on news that the country's biggest casino operator's profits would miss market expectations due, in part, to a series of unfavourable horse racing results.

The fall wiped around '95m off the market value of the company, which was '463m before the announcement.

The firm also said it had cut jobs, but the benefits of this would not be seen until next year.

Stanley's trading statement said: "After a reasonable start to the calendar year, the betting division has suffered from a series of unfavourable horse racing results, including the Cheltenham and the Doncaster Lincoln meetings."

In the gaming division, performance has been more mixed.

In the provinces, a combination of weaker demand and higher investment in casinos meant that profits would be in line with last year.

"In response, headcount has been reduced, both on the gaming floor and in the food and beverage function, but the benefits of this action will only have a material impact in the next financial year," Stanley said.

London casinos

In contrast, the company said it "expects another very satisfactory performance" from its lucrative London casinos.

Stockbroker Roy Kaitcer, of Brewin Dolphin, in Manchester, said he was surprised at the announcement: "This has come out of the blue.

"It looks as if they are being hit by a number of factors with race results going against them, weaker demand in the provinces, probably due to a fall in consumer spending.

"In London it looks as if they have some slow payers."

Mr Kaitcer said the City had been looking for Stanley to produce profits of around '47m this year, up from '37m.

In Janary, all appeared well as Stanley delivered a forecast-beating rise in first-half profits, as gamblers in London went on a collective losing streak.

Profit before tax and goodwill leapt 54 per cent to '24.7m in the six months to October 27, beating forecasts of '23m.

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