William Hill profit outlook improves after 713 closures

William Hill has said its profits have met the upper end of expectations, after a tumultuous year for the company that resulted in 713 shop closures. It stated that adjusted operating profit fell by 37% to £147m during the year ending 31 December, after the £2 stake limit on slot machines was enforced. This compared with guidance of £143-£148m, which it issued last month. The bookmaker closed 713 shops during the third quarter of its financial year. It made a statutory loss before tax of £37.6m during the year. The company said it absorbed an exceptional £95.1m charge as part of its store closure strategy.  Of this amount, £47.3m was related to an impairment charge against right-of-use lease assets. Total exceptional charges tallied £134.1m. It stated that it continues “to closely manage the mitigation of our outstanding property costs, as we maintain our disciplined cash focus in retail, anticipating an exceptional cash impact of circa £70m”. In January, the firm agreed to sell 35 shops in Northern Ireland and the Isle of Man to BoyleSports. Following the closures and sale, William Hill will operate 1,533 shops across the British Isles. Group net revenue fell 2% to £1.6bn. Net revenue in the retail business dropped by 13% on a like-for-like basis.  However, US net revenue increased by 38%, capturing nationwide market share of 24%. lrik Bengtsson, chief executive of William Hill, said: “We move into 2020 in a stronger position. Almost a quarter of revenue is now generated outside the UK compared to 15% in 2018.  “Our industry is evolving and this brings great opportunities, underlining the importance of our efforts to reposition the business.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette