SOURCE: The Press Association

Bookmaker Paddy Power has revealed plans to double the size of its UK retail estate over the next three years.

The Ireland-based firm currently has 58 shops in the UK, but will look to expand into Manchester and Glasgow this year, as well as open additional shops in London.

The decision comes after Paddy Power's UK retail division last year achieved its first trading profit, following losses dating back to 2002.

The surplus of 300,000 euros (£229,000) benefited from a focus announced in 2006 to manage costs and to drive up revenues from the company's existing estate.

Paddy Power said the "marked improvement" of the UK estate, together with regulatory changes allowing longer shop hours and higher payouts on machines, prompted a review last year of the potential for expansion in other UK cities.

The company said: "Based on the results of this work, in addition to opening further shops in London, we will also open shops in Manchester and Glasgow this year and expect to at least double the size of the estate over the next three years.

"We expect new shops opened to be loss-making initially with up-front central costs also arising from the appropriate investment in a local office infrastructure in both Manchester and Glasgow."

Overall, group pre-tax profits were 59 percent higher at 75.8 million euros (£57.9m) in 2007.

The company said profits increased across all its business channels, with a favourable set of sporting results also boosting the performance.

This included the World Cup failure of the Ireland rugby team, although there was some home-grown success for Irish punters after Padraig Harrington's victory in the Open Golf Championship.

Around half of operating profits now come from online betting and gaming, a market the company said was expected to grow well in the current year. Bookmaker Paddy Power has revealed plans to double the size of its UK retail estate over the next three years.

The Ireland-based firm currently has 58 shops in the UK, but will look to expand into Manchester and Glasgow this year, as well as open additional shops in London.

The decision comes after Paddy Power's UK retail division last year achieved its first trading profit, following losses dating back to 2002.

The surplus of 300,000 euros (£229,000) benefited from a focus announced in 2006 to manage costs and to drive up revenues from the company's existing estate.

Paddy Power said the "marked improvement" of the UK estate, together with regulatory changes allowing longer shop hours and higher payouts on machines, prompted a review last year of the potential for expansion in other UK cities.

The company said: "Based on the results of this work, in addition to opening further shops in London, we will also open shops in Manchester and Glasgow this year and expect to at least double the size of the estate over the next three years.

"We expect new shops opened to be loss-making initially with up-front central costs also arising from the appropriate investment in a local office infrastructure in both Manchester and Glasgow."

Overall, group pre-tax profits were 59 percent higher at 75.8 million euros (£57.9m) in 2007.

The company said profits increased across all its business channels, with a favourable set of sporting results also boosting the performance.

This included the World Cup failure of the Ireland rugby team, although there was some home-grown success for Irish punters after Padraig Harrington's victory in the Open Golf Championship.

Around half of operating profits now come from online betting and gaming, a market the company said was expected to grow well in the current year.