Allegations cloud Wembley profits

Robert Lea12 April 2012

ALLEGATIONS of improper and illegal payments in the US continued to dog Wembley despite the greyhound racing group reporting a leap in the dividend on rising profits from its American gambling operations.

Wembley shares, up 16 1/2p to 646 1/2p, dived more than 10% last week on speculation about payments allegedly paid to an unnamed US attorney. In a statement to the Stock Exchange, Wembley said that the allegations were unfounded.

But chief executive Nigel Potter later said that the company had considered making a payment to the lawyer as a thank you for 10 years of advising the business. Allegations of underhand payments emerged during unfair dismissal claims by two of Wembley USA's most senior executives.

The allegations overshadowed strong results from Wembley's dog tracks in the US, underpinned by gross profits of $1.2m (£845,000) a week from Americans playing video gaming machines alongside its Lincoln Park track in Rhode Island. The furore over the allegations is said to be behind delays in Wembley getting approval from state authorities to almost double the number of its gaming machines.

Wembley reported pre-tax profits up a fifth at £33.6m, with the dividend rising by more than a third from 11p to 15p.

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