From the Blue Index blog

Dont bet on Ladbrokes
May 15th, 2009

Shares in bookmaker Ladbrokes (LAD) were looking like a good recovery play up to this morning, having regained over 50% of their value after the October low of 133p last year

But this morning, Ladbrokes reported a 34% slump in profits for the first four months of 2009. Profits from big spending high rollers tumbled to just GBP25m from GBP40m in 2008, with punters enjoying a particularly good Cheltenham Festival in March. These abnormal gross win margin levels, increased free bets and unfavourable cost phasing in eGaming against the previous year resulted in the profits slump, although CEO Chris Bell was at pains to point out the rate of decline is not representative of our expectations for the year, and he said the decline has already given way to more normal trends in May. And overall, added Chris Bell, the general resilience of the business and strong cost controls gives us confidence in the outturn for the full year.

But brokers Noble, Shore Capital and Daniel Stewart all see the results as disappointing and weaker than expected, particularly given that results at rival William Hill are strong and in stark contrast

Full transcript here
http://blog.blueindex.co.uk/2009/05/dont-bet-on-ladbrokes/

LATEST BROKER VIEWS

Date Broker New target Recomm.
28 Nov JP Morgan... 95.00 Underweight
28 Nov Exane BNP... 150.00 Outperform
11 Nov JP Morgan... N/A Underweight
4 Nov Credit Suisse 125.00 Underperform
31 Oct Deutsche Bank 165.00 Buy
24 Oct Deutsche Bank 165.00 Buy
24 Oct JP Morgan... 95.00 Underweight
23 Oct Goodbody N/A Hold
23 Oct Numis 100.00 Reduce
23 Oct Canaccord... 150.00 Hold
Broker Recommendations for Ladbrokes

Ladbrokes' search

StockMarketWire.com

Bookmaker Ladbrokes will shortly start a process to identify a successor for chief executive Richard Glynn who will leave the company next year at the end of his five-year term.

The search will evaluate both internal and external candidates.

Glynn has been implementing a fundamental re-engineering of its business and operational and digital capabilities.

Ladbrokes says: "As this year has progressed, it has become increasingly clear to the board that the necessary organisational and operational changes have been implemented and the benefits of the transformation plan are beginning to come through.

"Whilst the Board acknowledges that the recovery programme has taken longer to deliver than initially anticipated, in great part due to economic and regulatory headwinds, the Board believes that the changes made are now deeply embedded in the organisation and that increasing attention should now be focused on delivering sustainable growth from a much stronger operational and digital platform.

"With four weeks to go the Company is trading in line with its expectations for the current year and is confident that 2015 will see further operational and financial progress."

Glynn was appointed CEO of Ladbrokes in April 2010, with a clear mandate to implement the recovery programme within a five year term.

Following extensive and constructive discussions between the Board and Richard, it is intended that he will complete his term and continue in his role as CEO into 2015.

The board will shortly start a process to identify his successor and the search will evaluate both internal and external candidates.

Once an appointment has been made, Glynn has agreed to remain in post as required to ensure an orderly transition. Chairman Peter Erskine said: "On behalf of the Board, I would like to thank Richard for his leadership of the Company and his considerable achievements in delivering a new digital future for Ladbrokes. He has devoted enormous energy and dedication to securing the transformation of the Company and the benefits of that work are beginning to be seen. I am pleased that he will both see through the final steps of the implementation plan and be on hand to facilitate an orderly succession process. Ladbrokes has been transformed and is a far stronger company as a result of his work. " Glynn commented: "Everyone at Ladbrokes has worked incredibly hard over the past, nearly five years, to deliver the transformation programme. We have faced significant operational challenges, as well as economic and regulatory headwinds. However I am pleased that the business is fundamentally stronger than it was and now has the operational and digital capabilities to compete effectively. We have delivered against all of the recent milestones and increasingly shown real competitive momentum ".

"It has been a privilege to lead Ladbrokes over this crucial phase. I am very proud of the resilience and professionalism the team has shown during this intense period of activity. It is the right time for Ladbrokes to identify my successor. I will continue to serve the Company to help ensure a smooth succession I look forward to the Company, the shareholders, our partners and in particular everyone in the team reaping the benefits, over the next few years, of all that has been sown."



Story provided by StockMarketWire.com

Talk of Harriet Green (ex TCG) taking the vacant role, if right then sp should improve from here.
2517

Already in WMH George, if that rumour becomes fact reckon it's worth a punt. Long on the spreads 118.22 stop 108.22

LATEST BROKER VIEWS

Date Broker New target Recomm.
5 Dec Deutsche Bank 165.00 Buy
4 Dec JP Morgan... 95.00 Underweight
3 Dec Goodbody N/A Hold
3 Dec Shore Capital N/A Hold
3 Dec Panmure Gordon 135.00 Hold
28 Nov JP Morgan... 95.00 Underweight
28 Nov Exane BNP... 150.00 Outperform
11 Nov JP Morgan... N/A Underweight
4 Nov Credit Suisse 125.00 Underperform
31 Oct Deutsche Bank 165.00 Buy
Broker Recommendations for Ladbrokes

Mixed bag from the brokers as usual CC, good luck with WMH (I'm not in) and your punt on LAD.
2517

Probably a glutton for punishment. Back in long on the spreads this morning (Mar Contract) @ 115.13. Initial target 140p Stop 98p. Preliminary results 26th Feb. Ex Divi March. 52wk low 102.20 - 52wk high 167.30.

Stop to entry for risk free trade.

Marking time, still hoping for a push leading up to results.

LATEST BROKER VIEWS

Date Broker New target Recomm.
11 Feb Deutsche Bank 165.00 Buy

Careful with this one CC. I saw a broker note yesterday saying that LAD were probably going to suffer if the WMH / 888 takeover goes ahead.

Who knows Harry, broker notes mixed at best. Got a tight stop anyway.:0)

There is a negative article in Shares Mag apparently.

And Chris - so we've heard! :-))

Negative article in Shares Mag? Now there is a cast iron buying signal if ever i saw one. :0)

Taken profits here (like watching paint dry) @ 120.41 + 5.28.

Well the WMH/888 takeover didn't take place. LAD sp severe headache banging constantly against resistance. Preliminary results 26th Feb. Left a limit buy on spreads @ 124p tight stop if filled.

bought in @112 no exceptional profit,in results , divi up s/p to go past 130 if so.

Well timed exit Chris (post 86)
2517

Afraid so George. Could have to wait awhile before limit buy filled.