Britain’s largest casino operator, Stanley Leisure, has reported that its London sites, which experienced a drop in both attendance levels and revenues during the first half of the year, have begun to recover lost business.

In a trading update for the first half of the financial year to 30 October issued ahead of its interim results, the group said that, overall, it had performed in line with expectations.

Stanley operates 41 casinos in the UK with four clubs in the capital, including Crockfords and the Colony Club.

The six month period also included a seven-week contribution from Stanley’s betting shop business, which was sold for £504m to William Hill on 18 June. In September this year, the group returned £327m of surplus funds to shareholders, following the completion of this sale.

Meanwhile, the group’s provincial casinos also performed satisfactorily in the first half.

For the first few weeks of the second half of the year, Stanley’s London clubs performed well and have been busy. A spokesperson said: “If these levels continue, we are confident that we will recover much of the business lost."

However, Stanley said the full impact on attendance levels of the abolition of the 24-hour rule on 1 October can’t be measured until the 2006-7 financial year. Details: www.stanleyleisure.com