2. Aims
2.1 -To have a market value of around £1.1 billion
-To double the number of slot machines allowed in each betting shop.
-To have a succesful flotation.
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3. Objectives
3.1-To provide a competitive gambling industry
- Increase the number of jackpot payouts
- To introduce online betting.
4. Financial Information.
4.1 The company raised a turnover of £2.45 billion in a year with underlying earnings of £128.5 million. They have benefited
from the introduction of tax-free betting, it enabled sales to increase from £449.3 million the previous year to £699.7 million.
Analysts expect the company to raise about £1.6 billion as a result of their flotation but also carry around £500 million debt.
CVC and Cinven, William Hill's venture capital owners are expected to retain a stake of no less than 30 per cent.
5. Advantages
5.1 -The company will raise more money as a public limited company.
-They can have as many shareholders as possible.
-They have limited liability.
- They can expand and raise more income.
5.2 Dis-advantages
- The flotation is very risky as there is a no definite chance of success
- No shareholder has full ownership of the company unless they can afford to buy more shares.
- This type of change involves a lot of paperwork e.g declaration of prospectus etc. which may take a lot of time.
6. Conclusion
William Hill is expected to benefit further from its flotation regarding its succsess in recent years. It is Britain's second biggest
bookmaker and the flotation is an important developement for the company.
by Ratidzo Chivese
