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Aim-listed Sportingbet is preparing to move up to the main market, having recovered from the disastrous impact of the effective ban on online gambling in the US in 2006.
Andrew McIver, chief executive, said the move to the main market was prompted by Aim's under-performance over the past year. "In bull markets, Aim does pretty well but if you think the recession is going to last some time, Aim is going to get unduly punished."
Sportingbet hopes to widen its shareholder base when it graduates to the main market within the next six months.
The company's US business accounted for about 90pc of the group when it withdrew from the market. Sportingbet said it was is still in "constructive" talks with the Department of Justice regarding its activities in the US before the 2006 ban.
A surge in European sports betting drove pre-tax profits for the year to July up to £22.3m - a staggering increase from £1.2m the previous year, when results were hit by an exceptional charge of £12m for restructuring costs. Full-year net gaming revenues rose 13pc to £164m.
The amounts wagered on sports betting in Europe, which represents 64pc of Sportingbet's business, grew by 21pc, driven by a larger product offering.
The UK has historically been "difficult" for Sportingbet and gaming revenues dropped 21pc in the first half.
The company has recently started marketing in the UK as advertising rates have come down. It says this has led to a 10pc increase in revenues in the first two months of this financial year.
In July, Sportingbet sold its loss-making Italian business, where the introduction of sports betting shops has cannibalised online revenues. The move incurred a loss of £9.4m.
Current trading is in-line with expectations for adjusted operating profits of £35m in the year to July 2010.
By Josephine Moulds
Telegraph.co.uk
