Inspired Gaming benefits from new supply contracts

The rising popularity of slot machines in bingo halls and betting shops helped Inspired Gaming Group sales to rise markedly in its first full year as a listed company.

As a result, shares in the maker of gaming machines jumped 13.1 per cent, or 21¼p, to 183½p on Friday.

The shares, which listed on Aim in June 2006, had lost about 14 per cent of their value in the past year.

Inspired manages more than 82,000 machines in UK pubs, betting shops, bingo halls and casinos. It is working to replace its analogue machines with digital ones, which are connected to the internet and offer a wider variety of games.

Inspired also has more than 15,000 machines overseas, with terminals in countries such as Germany, Mexico and Australia as well Cambodia and Thailand.

For the year to September 29, sales at the Staffordshire-based company were £166.3m, while profits hit £3.8m. That compares with sales of £58m and a loss of about £2m in the 21 weeks to the end of September 2006.

Inspired's pub-related business has suffered from the smoking ban and declining consumer confidence. But those declines were offset by a strong performance in bookmakers and bingo halls.

During the year the company signed a number of significant contracts to supply its gaming terminals to companies including bookmakers such as Ladbrokes and Betfred, and the Galaxy Star World Casino in Macau.

Russell Hoyle, chairman, said: "The diversity of our profit streams, together with our focus on fast-growth areas of the gaming market, is serving us well."

The company also expects to benefit from new legislation and the regulated growth of casinos in the UK.

Inspired announced a maiden final dividend of 6.7p, giving a total dividend for the year of 8.4p.