Acquisitive bingo operator Top Ten Holdings has lifted annual profits to £2.4 million pre-tax and plans an internet service.

AIM-quoted Top Ten, whose 44 clubs make it the UK's third largest bingo operator, achieved a 70.5 per cent gain in turnover to £23.7 million in the year to March. A two-thirds increase in distribution costs to £15 million and a fourfold leap in interest costs to £1.2 million helped erode pre-tax margins.

A slower, 11.4 per cent, increase in earnings to 7.94p a share partly reflects a 140 per cent tax hike to £680,200, though that includes deferred tax of £192,517. Directors recommend a 20 per cent dividend increase to 1.45p a share.

Top Ten, which ended its year with £1.7 million cash and net current liabilities of the same amount, has £42.5 million of bank facilities and has so far drawn down £30 million. This leaves £12.5 million 'available for future acquisitions'.

In December, the company bought Apollo Bingo, with clubs in Rhyl, Caernavon and Blackpool, and helped pay for it with a £3.3 million placing at 85p. In February, Top Ten paid £1.85 million for three freehold Bravo bingo clubs at Worksop, Leicester and Blackwood.

Chairman Sir Aubrey Brocklebank says the company received two takeover approaches itself last year, but in neither case could a deal be struck. In the wake of several 'high profile' deals in the sector, 'we have not sought to solicit any further offers, though any serious approaches will be given proper consideration'.

At 120.5p, up 8p this morning and valuing the company at £30.5 million, Top Ten's shares have halved since mid-2003, though they have rallied from last December's 92.5p. They should make up more lost ground.