Tote reports annual profits up 3.1%

Tote to be sold on open market

State-owned horseracing bookmaker Tote shrugged off a "very difficult year" as it reported annual profits up 3.1%.

The Wigan-based group said the rise in gross group profits - to £163.6 million in the year to March 31 - came despite the disruption caused by last year's June and July floods, which saw 83 race meetings called off.

Tote added that group gross win increased by 5.2% and turnover saw a double digit rise, ahead by 13.2% to £2.8 billion. The full-year results come as the deadline fast approaches for a conclusion on the sale or break-up of Tote.

The Government hired Goldman Sachs in April to run the auction of Tote after it rejected a bid for the firm from a racing consortium.

Goldman Sachs is due to report back by July 25 on whether or not the group should be split up for sale or sold as a whole.

The previous bid team - which includes the Racehorse Owners Association, the Racehorse Association and Tote bosses - had been in talks for more than a year, but its offer failed to match the Government's £400 million price tag.

Tote has more than 4,000 staff and 450 betting shops. The Labour Party first committed to sell it in 2001 to end the Government's direct involvement in horseracing.

It said it had achieved an increase in profits after hiking gross win in all divisions and keeping a tight control on costs over the past year.

The group added that it achieved a "record" turnover for a single day on-course on Gold Cup Day at Cheltenham in March. It said its pools business had also enjoyed "significant growth", with total investments up 9.7% after expansion in the UK and abroad.

But retail operating profits suffered as the group faced new tax on gaming machines, increased costs through evening opening and compliance to new gambling regulations.