Ladbrokes hails 'promising' start to 2013

High Street betting shop Ladbrokes registered record retail revenues in the UK last year, while the company said it has had 'promising' start to 2013.

High Street betting shop Ladbrokes registered record retail revenues in the UK last year, while the company said it has had 'promising' start to 2013.

"Favourable" sporting results in the final quarter underpinned record UK Retail net revenue of £739.5m in 2012, up 8.2% year-on-year.

Revenues in its Digital division, which comprises betting and gaming online and from mobiles, rose 9.0% to £178.1m.

Total group revenue increased by 7.4% from £980m.3m to £1,053.3m last year.

Meanwhile, pre-tax profit surged by 49.1% from £134.6m to £200.7m, while underlying earnings per share rose 20.3% to 18.4p.

The full-year dividend was raised by 14.1% from 7.8p a share to 8.9p a share.

Net debt dropped by 14.8% over the period to £386.9m, while cash generated by operations rose 17.8% to £283.2m.

Outlook looks brightThe company said that 2013 has had a "promising start" with group net revenue (excluding High Rollers) up 7.2% in the first six weeks.

"We are continuing to transform Ladbrokes, with the resilience and reinvigoration of the UK Retail estate driving another year of growth in profit per shop. The development of the Digital business is progressing well and our investment in trading systems is generating improved quality of earnings," said Chief Executive Richard Glynn.

Digital revenues and earnings in 2013 are expected to be helped by the roll-out of the new sportsbook and mobile platforms in the first half, after delays during 2012.

Glynn said that Ladbrokes will continue to drive investment in 2013 by accelerating its shop openings programme and focusing on areas of unmet demand.

In spite of the solid outlook, shares were down 2.16% at 226p in early trading on Thursday, after an impressive 30% rise over the last six months.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Oil producers are back at their Covid-19 lows – is it time to buy?
Oil

Oil producers are back at their Covid-19 lows – is it time to buy?

With demand for oil hammered by Covid-19 and talk of “peak oil demand”, there are lots of good reasons to be bearish on oil producers. So, asks John S…
22 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020
Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020