Share tip of the week: a bookmaker worth a punt

Having ramped-up its promotions and successfully drawn the attention of a younger crowd, this bookmaker now looks worth investing in, says Paul Hill.

In contrast to the booming mergers and acquisitions market, initial public offerings have been relatively thin on the ground. So it was welcome news for the gambling industry last week when Betfair managed to pull off its £1.4bn flotation. The only minor irritant for William Hill, Britain's leading bookie, was that the float has caused a temporary sell-off in its shares. Fund managers have had to trim their stakes in Hill so as not to exceed their overall sector weighting. But this equity indigestion actually presents a buying opportunity.

The firm operates 2,350 licensed betting offices, largely on UK high streets. It also has a handful of other aces up its sleeve. These include its in-store gaming machines, an expanding online business with Playtech and the age-old gambling truism that the 'house always wins'.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.