SOURCE: Press Association

The squeeze on consumer spending has so far failed to deter hopeful punters, bookmaker William Hill said.

The company said it had achieved a "solid start" to the year after improving its gross win - the amount left by unsuccessful punters - by 4 percent in the seven weeks to February 19.

The bookmaker said: "To date we have seen no evidence that a slow down in consumer spending is having an adverse impact on our business, although at this early stage of the cycle it is difficult to be definitive."

But operating profits for 2007 came in at £286.7 million - 2 percent lower than the previous year - as the company was hampered by falling profits from internet gambling.

William Hill's upbeat comments on current trading contrast with warnings from analysts over prospects for bookmakers.

The company said it had been less exposed to the economic cycle than other consumer-facing industries in the past, but also cautioned that it now generated much more revenues from gaming machines in betting shops and online gambling.

It added: "It is difficult to predict with any certainty how these income streams will react under conditions of economic pressure."

William Hill remains confident of further growth from its retail business, which grew its gross win 9 percent to £802.6 million from its chain of almost 2,300 betting shops across the UK and Ireland last year.

But the bookmaker remains concerned over internet revenues following its decision to abandon a long-running upgrade of its internet betting operation in January.

The company took a £20.9 million exceptional charge following the move - with an extra £4 million also expected this year - but is hoping to move to a new internet betting platform by the end of November.

William Hill's current set-up offers falls short of rival offerings and had a "disappointing year" as operating profits fell 17 percent to £50.9 million.