The UK bookmaker decided to return the surplus capital to its shareholders, as the Government\’s U-turn on plans to deregulate the gambling industry, made it unlikely that the group would be able to expand into the casino sector. The Gambling Bill was originally expected to open the doors to a large number of Las Vegas-style supercasinos in the UK. However, the Government has since scaled back its plans and limited the growth to eight of these casinos. “The Gambling Bill now appears less likely to offer opportunities for expansion of the UK casino industry, and synergies between casino and betting operators, than were originally anticipated.
The firm, which reported a 21% rise in profit to £205.3m on sales 39% higher at £8.29bn, is launching a \’B share\’ scheme to facilitate the proposed return of capital.
Under the scheme, shareholders will exchange their shares for shares in a new holding company which will need to be introduced. Each B share will offer pro rata participation to all shareholders with full choice between income and capital elections.
“We have announced the return of capital in light of William Hill’s strong financial performance since the time of flotation and in order to re-establish an efficient capital structure as well as maximise returns to shareholders,” said Chairman Charles Scott.
The company has secured new loans for £1.2 billion and it remains keen to expand its existing business, intending to buy more betting shop chains.
“Our first priority would be to buy more betting shops. I think we could buy another 600,” said Chief Executive David Harding, adding that William Hill was in talks with “a number of smaller operators.”
Chief Executive David Harding is also focusing on building Hill\’s European poker operations and admitted to be on the lookout for an online betting business, though that will not necessarily be within the online poker industry.
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