Directors at Chisholm Bookmakers said they are disappointed with the firm’s results after posting widening losses and a fall in turnover.
The Ashington-headquartered business, which runs 36 shops across the North East as well as online betting services, saw its operating loss grow from £132,061 to £821,187, on turnover of £35.8m, which had fallen by 14.5% from a year earlier.
Pre-tax losses also grew from £145,123 to £824,633.
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In a report accompanying the accounts, managing director Howard Chisholm cited a number of reasons for the falling financial results which, it said, also saw the company “rationalise the estate” and close a number of small shops. As a result, the company’s overall headcount dropped from 154 people to 137 people.
The previous year the firm decided to drop coverage from multi-channel supplier Sports Information Services (SIS), which provides bookmakers with live video, pictures, data and on-screen graphics for use in its branches.
The firm, first launched in the 1950s, had claimed the costs associated with SIS was too high, leading to a strategic decision to trade without the high cost of the SIS services.
Speaking in this year’s company’s accounts, covering the year ended April 30 2019, managing director Howard Chisholm said: “The directors are disappointed with the results for the year.
“The decision to drop the SIS coverage proved that the cost of that service outweighs the additional revenue generated and OTC profitability improved.
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“However, gaming machine income was impacted during the year by continuing negative coverage in the media and this caused an unexpected drop in incomce from this channel.
“The continuing above inflation increases in the rate of the National Living Wage continues to impact the business due to our geographic location in the North East of England.
“We continue to rationalise the estate and a number of small shops were closed during the year. The loss for the year includes a prudent provision of £436,353 for onerous lease contracts.”
Mr Chisholm used the accounts to round on politicians over increased legislation for the sector – much of which came into force on April 1 last year – as well as on media rights companies for putting increased cost pressures on betting shops.
He said: “Changes to legislation and regulation continue to present the highest risk to the business.
“There is no indication that politicans will start to taken an evidence based approach to gambling regulation and it is possible that the retail betting industry will suffer further unwarranted punitive regulations.
“The company has a strong focus on encouraging responsible gambling by its customers and ensures all staff are aware of their responsibilities. Unfortunately other companies, particularly in the online sector, do not hold to such high standards and there is a risk that regulatory action designed to improve standards online goes further and unnecessarily impacts the retail industry.
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“There has been a considerable drop in 海角视频 betting shop numbers since April 1 2019 and this trend is set to continue.
“The remaining shops could be put under further financial pressure as media rights companies seek unreasonable increases in charges to compensate for the reduction in income caused by the drop in shop numbers.”
The accounts also show the firm made contributions of £4,800 to a national charity focused on research and education programmes to combat problem gambling in the 海角视频.