Interest bill brings Coral a £7m loss

BETTING shop operator and internet gaming chain Coral Eurobet has slumped into the red in its first year under new ownership.

The bookmaker, bought by private equity outfit Charterhouse Development Capital last year, made an operating profit of £84.9m on a turnover of £3.8bn for 2003, according to accounts filed at Companies House.

But interest charges of £92m meant Coral posted a pre-tax loss of £7.1m for the year to 28 September.

Over the long term, Charterhouse is gambling on a betting boom with the rise of popular fixed odds betting terminals and the planned deregulation in the licensing laws.

Like rivals William Hill and Ladbrokes, the company is installing the terminals, which allow people to play virtual roulette, in its 1,100 shops.

But in the short term, Coral is saddled with huge debts - a legacy of the hefty £860m Charterhouse paid Morgan Grenfell Private Equity for the company last year. Four years previously, Coral changed hands for only £390m.

The borrowings of £852m were refinanced in February, cutting interest payments by £23m a year. Coral may list on the London Stock Exchange later this year with a price of about £1.3bn.

DIY retailer Focus Wickes made a pre-tax loss of £35.1m in the year to 26 October.