Betfred turnover hits £2.8bn

NORTH West betting giant Betfred saw turnover increase to £2.77bn in 2009, a 5.7% increase on the previous year.

The company, which is owned by brothers Fred and Peter Done and employs around 2,600 staff, said it had continued with its expansion programme.

It opened 56 new betting shops during the year, taking the total to 791. Since the year end the company has opened another 39 shops, taking the total to 830.

Fred Done told TheBusinessDesk that although the company was closing its smaller and weaker shops, he expected the net gain to mean a total of 840 shops are open by the end of March 2010, increasing that figure to 860 by the end of 2011.

Pre-tax profit for the year to March 29, stood at £8.5m. That compares to the £38.9m it made in 2008, which was largely down to the £27.3m profit it made on the disposal of online betting subsidiary Betfred NV, in September 2007.

However, it did incur £2.3m of restructuring costs during the year, as a result of compensating those staff with whom it had renegotiated existing contracts.

Mr Done said: “The environment has been tough, and we are having to get up earlier and stay later. It is very competitive and our expansion has slowed down.

“By my nature I’m an optimist and I think we’ve come through the worst but at the same time I don’t think we should drop our guard.”

Turnover figures also included £60.7m from the internet business, which ceased operation in January 2009.

The directors added that that the roll-out of fixed odds betting terminals in its shops had continued to reap benefits for the company.

Mr Done said: “The fixed odds machines are producing around 50% of the company’s profits and they are in all the shops now.

“Horse racing is becoming less and less of a product. It used to be about 90% but now it’s less than 40%. Instead there is a mix of football, the machines and virtual racing.”

The company made £129,000 of charitable donations during the year.