The maker of Vegas Star and Thunderbirds are Go gaming machines, Stargames Ltd, has released a better than expected annual net profit and says a recent pick up in sales will continue.

Stargames' annual net profit for 2004/05 was $6.01 million, down from $6.7 million in 2003/04, but higher than the $5 million it warned the market it was expecting in early July due to sales timing issues.

Managing director John Rouse said a late surge in sales and better pricing and margins boosted the result.

"Stargames expects increased sales in the new financial year and a stronger profit result," Mr Rouse said.

New Stargames products released during 2004/05 included Red Hot Dollars, Thunderbirds are Go and Australian Hunter.

New games licenced from US firm WMS included Rakin It In and Shakin Bacon.

In Australia, Vegas Star sales were achieved for the first time to Star City Casino in Sydney and Perth's Burswood Casino.

New Rapid table game installations were made at Crown Casino in Melbourne, Star City, Burswood and Wrest Point Casino in Hobart.

International sales growth was due largely to the increasing popularity of Vegas Star products, including Vegas Star Roulette, Vegas Star Baccarat, Vegas Star Blackjack and Vegas Star Sic Bo.

Major sales of Vegas Star products were made to Macau, Malaysia and Cambodia and the first installation of Vegas Star products was completed in the Native American Indian Casino market in California in the US.

Stargames sales revenue for the year to June 30, 2005 was $71.2 million, up nine per cent on 2003/04.

The company will pay a final franked dividend of five cents per share, up from 4.5 cents at the same time last year, taking the total dividend to 9.5 cents, up from 7.5 cents in 2003/04.

Stargames shares closed five cents higher at $1.32.