This summer's football World Cup and the expansion in the number of sites has helped Sports Cafe Holdings narrow its losses.

The group, which operates the Sports Cafe in Broad Street, Birmingham, reduced first half pretax losses to £330,000 from £471,000 as turnover rose by 46 per cent to £9.3 million.

The chain said like-for-like sales rose ten per cent in the six months to June 30 while earnings before interest, tax, depreciation and amortisation increased 52 per cent to £980,000 from £645,000.

Operating profit, excluding amortisation of goodwill, rose from £79,000 to £275,000. Chairman Ian Lenagan said: "The roll-out of the Sports Cafe estate continues and is expected to deliver further growth in the future.

"The company is now in a position to develop both its core business and related business opportunities through developing the Sports Cafe brand.

"The results of the first half together with Sports Cafe's continued expansion and increasing profile enables the board to remain confident about the prospects of the company during the remainder of 2006 and beyond."

During the period a new Bristol site and the introduction of a betting shop in Birmingham boosted sales.

The upturn was even more marked at the Sports Cafe sites in Bristol, Newcastle and Liverpool, which increased sales by 46 per cent.

Chief executive Bill Balkou said the impact of the Football World Cup in June provided an uplift in sales in what is traditionally a quiet month for the company although regional variances were marked with the more cosmopolitan cities outperforming the group average.

He said: "We saw an increase in Birmingham, Bristol and London, more cosmopolitan cities that retained interest in the tournament after England went out.

"Now we are beginning to benefit from economies of scale. Sales are improving and so margins are getting better."

Mr Balkou said the group was hunting for acquisitions to add to its eight sites it currently operates, while it was also planning to open an outlet in Cardiff later this year.

Other locations in Croydon and Southampton were also being looked at, he added.

"We are working hard to expand, either slowly organically or quicker through acquisition. The model is proven, and we will be looking at groups with eight or ten units, buy them and convert them."

During the six months to June 30, Sports Cafe said the market remained competitive and the impact of the new licensing regime introduced last November had placed additional costs on the high street sector.

Mr Lenagan said: "However, driven by our focus on a wide range of major sporting events Sports Cafe reported an increase in sales and continues to use its position as a premier sports venue to host a wide range of corporate and related sports events."

In Birmingham, the company's Broad Street venue had also been boosted by the opening of its first betting shop, a development which will be followed in Glasgow and Manchester.

Mr Balkou said: "I like watching an event, putting a bet on, and being able to collect the winnings there and then."

Shares closed down 3/4p to 28 1/2p.