Britain's biggest casino group profits before tax and goodwill rise from £37.5m to £41.3m, on a 35% increase in turnover to more than £1bn in the year to April. The year's total dividend payout was lifted from 7.1p to 8.6p a share. Within gaming, sales were up 20% to £180m, buoyed by seven casinos acquired in the early part of the year. Performance at the company's provincial casinos was 'uneven', but the London casinos trotted out another record year with an 18% rise in profits to more than £20m. In the betting division, sales surged 38% to £821m, boosted by changes in the taxation regime. However pre-tax profits were pegged back 5% to £20.3m, hindered by a poor Cheltenham festival. In the new financial year, the provincial casinos have shown recovery signs, but worryingly the win margin at the London casinos has been hit by losses to major players. Looking ahead, the Palm Beach casino in Mayfair, acquired in May from London Clubs International, should prove a valuable addition and work on the exciting 'Star City' casino development near Birmingham continues - this casino should open before Christmas. On consensus estimates for 2004, the shares trade on an undemanding forward rating of 13 times, with plenty of 'de-regulation' appeal. Hold.