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Interim Results - Part 2

6th Aug 2009 07:00

RNS Number : 9683W

Ladbrokes plc

06 August 2009

Unaudited financial statements

Interim consolidated income statement

	Half year ended 30 June 2009		Restated half year ended 30 June 2008(1)		Restated year ended 31 December 2008(1)

	Before		Before		Before
	non-trading		non-trading		non-trading
	items(2)	Total	items(2)	Total	items(2)	Total
	£m	£m	£m	£m	£m	£m
Continuing operations
Amounts staked(3)	7,659.5	7,659.5	8,724.3	8,724.3	16,524.5	16,524.5

Revenue	565.1	565.1	604.8	604.8	1,151.2	1,151.2
Cost of sales before depreciation and amortisation	(342.2)	(342.2)	(368.3)	(369.1)	(696.2)	(697.3)
Administrative expenses	(39.1)	(39.1)	(37.8)	(39.4)	(73.2)	(73.1)
Share of results from joint venture and associate	0.4	0.4	0.4	0.4	2.0	2.0
EBITDA	184.2	184.2	199.1	196.7	383.8	382.8
Depreciation and amounts written off non-current assets	(27.2)	(27.2)	(26.5)	(28.7)	(53.0)	(60.2)
Profit before tax and finance costs	157.0	157.0	172.6	168.0	330.8	322.6
Finance costs	(25.7)	(83.3)	(36.3)	(67.8)	(67.4)	(191.1)
Finance income	-	56.3	0.3	29.4	2.2	126.0
Profit before taxation	131.3	130.0	136.6	129.6	265.6	257.5
Income tax expense	(19.7)	(19.3)	(25.5)	(24.8)	(38.4)	(37.3)
Profit for the period - continuing operations	111.6	110.7	111.1	104.8	227.2	220.2

Discontinued operations(2)
Loss for the period from discontinued operations	(4.9)	(36.0)	(3.0)	(10.8)	(9.6)	(19.5)
Profit for the period	106.7	74.7	108.1	94.0	217.6	200.7

Attributable to:
Equity holders of the parent	106.7	74.7	108.1	94.0	217.6	200.7
Earnings per share from continuing operations:
- basic	18.6p	18.4p	18.5p	17.4p	37.8p	36.6p
- diluted	18.5p	18.3p	18.4p	17.3p	37.6p	36.4p
Earnings per share on profit for the period:
- basic	17.7p	12.4p	18.0p	15.6p	36.2p	33.4p
- diluted	17.7p	12.4p	17.9p	15.5p	36.0p	33.2p
Proposed dividends(4)	3.50p	3.50p	5.10p	5.10p	9.05p	9.05p

(1) Details of restatement explained in notes 2(c) and 15 to the financial statements.

(2) Non-trading items are profits and losses on disposal and impairment of non-current assets, profits and losses on disposal of businesses and investments, unrealised gains and losses on derivative financial instruments arising from hedging interest rate and currency exposure, litigation and transaction costs and derecognition of deferred consideration on acquisitions. Details of the non-trading items are given in note 4 and of discontinued operations in note 6 to the financial statements.

(3) Amounts staked does not represent the Group's statutory revenue and comprises the total amount staked by customers on betting and gaming activities.

(4) The dividends paid in the half years ended 30 June 2009 and 30 June 2008 were £54.4 million (9.05p per share) and £54.4 million (9.05p per share) respectively. An interim dividend of 3.50p per share (2008: 5.10p) was declared by the directors on 6 August 2009. These financial statements do not reflect this dividend payable.

Interim consolidated statement of comprehensive income

	Half year ended 30 June 2009	Half year ended 30 June 2008	Year ended 31 December 2008
	£m	£m	£m
Profit for the period	74.7	94.0	200.7

Currency translation differences	(20.9)	7.2	39.0
Net investment hedges	10.4	-	(17.8)
Tax on net investment hedges	(2.9)	-	5.0
Total foreign currency translation (expense)/income net of tax	(13.4)	7.2	26.2

Actuarial losses on defined benefit pension scheme	(21.8)	(13.0)	(16.5)
Tax on actuarial losses on defined benefit pension scheme	6.1	3.7	4.6
Total actuarial losses on defined benefit pension scheme net of tax	(15.7)	(9.3)	(11.9)

Net gains/(losses) on cash flow hedges	0.4	6.8	(10.2)
Tax on net gains/(losses) on cash flow hedges	(0.1)	(1.9)	2.9
Total net gains/(losses) on cash flow hedges net of tax	0.3	4.9	(7.3)

Other comprehensive (loss)/income for the period	(28.8)	2.8	7.0

Total comprehensive income for the period	45.9	96.8	207.7

Attributable to:
Equity holders of the parent	45.9	96.8	207.7

Interim consolidated balance sheet

	30 June 2009	30 June 2008	31 December 2008
	£m	£m		£m
ASSETS
Non-current assets
Goodwill and intangible assets	614.3	670.7		693.5
Property, plant and equipment	240.0	261.8		275.2
Interest in joint venture	2.3	0.1		0.7
Interests in associate and other investments	11.9	11.6		10.3
Other financial assets	6.8	11.4		5.1
Deferred tax assets	18.1	26.2		27.1
Derivatives	-	25.5		1.5
Retirement benefit asset	0.7	22.5		20.8
	894.1	1,029.8		1,034.2
Current assets
Trade and other receivables	131.6	140.2		109.8
Derivatives	50.8	-		115.1
Cash and short-term deposits	17.1	28.3		26.4
	199.5	168.5		251.3

Assets of disposal groups classified as held for sale	73.9	9.0		9.4

Total assets	1,167.5	1,207.3		1,294.9

LIABILITIES
Current liabilities
Interest-bearing loans and borrowings	(422.6)	(197.9)		(459.7)
Derivatives	(2.1)	(0.1)		-
Trade and other payables	(178.1)	(225.7)		(196.6)
Corporation tax liabilities	(141.5)	(138.9)		(156.8)
Other financial liabilities	(2.8)	-		(1.9)
Provisions	(2.7)	(2.1)		(3.3)
	(749.8)	(564.7)		(818.3)
Non-current liabilities
Interest-bearing loans and borrowings	(598.2)	(888.1)		(659.8)
Derivatives	(10.8)	(1.2)		(11.2)
Other financial liabilities	(9.1)	(16.9)		(13.8)
Deferred tax liabilities	(103.5)	(128.5)		(107.7)
Provisions	(10.2)	(9.5)		(11.2)
	(731.8)	(1,044.2)		(803.7)

Liabilities of disposal groups classified as held for sale	(18.6)	(7.2)		(0.9)

Total liabilities	(1,500.2)	(1,616.1)		(1,622.9)

Net liabilities	(332.7)	(408.8)		(328.0)

EQUITY
Issued share capital	179.4	179.0		179.2
Share premium account	2,137.4	2,135.0		2,135.8
Treasury and own shares	(112.6)	(113.6)		(114.3)
Foreign currency translation reserve	22.2	16.6		35.6
Retained earnings	(2,559.1)	(2,625.8)		(2,564.3)
Equity shareholders' deficit	(332.7)	(408.8)		(328.0)

Interim consolidated statement of changes in equity

	Share capital	Share premium	Other reserve	Treasury and own shares	Retained earnings	Foreign currency translation	Total
	£m	£m	£m	£m	£m	£m	£m

At 1 January 2008	178.9	2,134.2	(30.0)	(80.0)	(2,663.3)	9.4	(450.8)
Profit for the period	-	-	-	-	94.0	-	94.0
Other comprehensive (loss)/income	-	-	-	-	(4.4)	7.2	2.8
Total comprehensive income	-	-	-	-	89.6	7.2	96.8
Issue of shares for cash	-	0.3	-	-	-	-	0.3
Share-based payment awards	0.1	0.5	-	-	(0.6)	-	-
Cost of share-based payments	-	-	-	-	2.9	-	2.9
Own shares purchased	-	-	-	(34.8)	-	-	(34.8)
Provision for share buybacks	-	-	30.0	-	-	-	30.0
Net decrease in shares held in ESOP trusts	-	-	-	1.2	-	-	1.2
Equity dividends	-	-	-	-	(54.4)	-	(54.4)
At 30 June 2008	179.0	2,135.0	-	(113.6)	(2,625.8)	16.6	(408.8)

At 1 July 2008	179.0	2,135.0	-	(113.6)	(2,625.8)	16.6	(408.8)
Profit for the period	-	-	-	-	106.7	-	106.7
Other comprehensive (loss)/income	-	-	-	-	(14.8)	19.0	4.2
Total comprehensive income	-	-	-	-	91.9	19.0	110.9
Issue of shares for cash	0.2	0.7	-	-	-	-	0.9
Share-based payment awards	-	0.1	-	-	(0.1)	-	-
Cost of share-based payments	-	-	-	-	0.3	-	0.3
Own shares purchased	-	-	-	-	-	-	-
Provision for share buybacks	-	-	-	-	-	-	-
Net increase in shares held in ESOP trusts	-	-	-	(0.7)	-	-	(0.7)
Equity dividends	-	-	-	-	(30.6)	-	(30.6)
At 31 December 2008	179.2	2,135.8	-	(114.3)	(2,564.3)	35.6	(328.0)

At 1 January 2009	179.2	2,135.8	-	(114.3)	(2,564.3)	35.6	(328.0)
Profit for the period	-	-	-	-	74.7	-	74.7
Other comprehensive loss	-	-	-	-	(15.4)	(13.4)	(28.8)
Total comprehensive income	-	-	-	-	59.3	(13.4)	45.9
Issue of shares for cash	0.1	0.2	-	-	-	-	0.3
Share-based payment awards	0.1	1.4	-	-	(1.5)	-	-
Cost of share-based payments	-	-	-	-	1.8	-	1.8
Net decrease in shares held in ESOP trusts	-	-	-	1.7	-	-	1.7
Equity dividends	-	-	-	-	(54.4)	-	(54.4)
At 30 June 2009	179.4	2,137.4	-	(112.6)	(2,559.1)	22.2	(332.7)

Interim consolidated statement of cash flows

	Half year ended 30 June 2009	Half year ended 30 June 2008	Year ended 31 December 2008
	£m	£m	£m

Net cash flows from operating activities(1)	94.7	133.7	292.8

Cash flows from investing activities
Interest received	-	0.3	1.3
Dividends received from associate	-	-	3.5
Payments for intangible assets	(7.1)	(7.4)	(14.6)
Purchase of property, plant and equipment	(14.8)	(24.1)	(58.5)
Purchase of subsidiaries	-	(14.4)	(15.0)
Purchase of businesses	-	(124.9)	(124.9)
Proceeds from the sale of property, plant and equipment	0.9	1.0	1.6
Cash obtained through acquisition of subsidiaries	-	1.7	1.7
Purchase of interests in joint venture	(3.1)	(0.8)	(1.8)
	(24.1)	(168.6)	(206.7)
Cash flows from financing activities
Proceeds from issue of shares	0.3	0.3	1.2
Proceeds from borrowings	6.0	106.8	239.8
Purchase of ESOP shares	(1.4)	(3.1)	(4.1)
Purchase of treasury shares	-	(34.8)	(34.8)
Repayment of borrowings	(27.9)	(0.3)	(207.0)
Decrease in deposits - maturity greater than three months	-	0.3	0.3
Dividends paid	(54.4)	(54.4)	(85.0)
	(77.4)	14.8	(89.6)

Net decrease in cash and cash equivalents	(6.8)	(20.1)	(3.5)
Net foreign exchange difference	(0.7)	0.5	2.6
Cash and cash equivalents at beginning of the period	25.0	25.9	25.9

Cash and cash equivalents at end of the period	17.5	6.3	25.0

Cash and cash equivalents comprise:
Cash at bank and in hand	20.9	28.7	27.0
Bank overdraft	(3.4)	(22.4)	(2.0)
	17.5	6.3	25.0

Analysed as:
Continuing operations	13.7	5.9	24.4
Discontinued operations	3.8	0.4	0.6
	17.5	6.3	25.0

(1) See note 11 for a reconciliation between profit before tax and finance costs and net cash flows from operating activities.

Notes to the financial statements

1. Corporate information

Ladbrokes plc is a limited company incorporated and domiciled in the United Kingdom whose shares are publicly traded. The principle activities of the company and its subsidiaries ("the Group") are described in Note 3.

The interim consolidated financial statements of the Group for the half year ended 30 June 2009 were authorised for issue in accordance with a resolution of the directors on 6 August 2009.

2. Basis of preparation

(a) The Group's annual financial statements for the year ended 31 December 2008 were prepared in accordance with International Financial Standards ("IFRS") as adopted by the European Union. The interim condensed consolidated financial statements for the half year ended 30 June 2009 have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements at 31 December 2008.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2008 except for the adoption of new standards and interpretations as noted below:

IFRS 8 Operating Segments

This standard requires disclosure of information about the Group's operating segments and replaces the requirement to determine primary (business) and secondary (geographical) reporting segments of the Group. The adoption of this standard did not have any effect on the financial position or performance of the Group. The Group determined that the operating segments were the same as the business segments previously identified under IAS 14 Segment Reporting. Additional disclosures about each of these segments are shown in Note 3, including revised comparative information.

IAS 1 Revised Presentation of Financial Statements

The revised standard separates owner and non-owner changes in equity. The statement of changes in equity includes only details of transactions with owners, with non-owner changes in equity presented as a single line. In addition, the standard introduces the statement of comprehensive income, which presents all items of recognised income and expense, either in one single statement, or in two linked statements. The Group has elected to present two statements.

The International Accounting Standards Board's Annual Improvements Project was published in May 2008, with the majority of changes being applicable for the period commencing 1 January 2009. The project made minor amendments to a number of standards, primarily with a view to removing inconsistencies and clarifying wording. The amendments to these standards did not have any impact on the accounting policies, financial position or performance of the Group.

The interim financial information was approved by a duly appointed and authorised committee of the Board of directors on 6 August 2009 and is unaudited. The auditors have carried out a review and their report is set out on page 47.

The financial information set out in this document in respect of the year ended 31 December 2008 does not constitute the Group's statutory accounts for the year ended 31 December 2008. The auditor's report on the statutory accounts for 2008 was unqualified and did not contain a statement under section 237 (2) or 237 (3) of the Companies Act 1985. Statutory accounts for 2008 have been delivered to the Registrar of Companies.

(b) To assist in understanding the underlying performance, the Group has defined the following items of income and expense as non-trading in nature:

- Profits/losses on disposal and impairment of non-current assets

- Profits/losses on disposal of businesses and investments

- Unrealised gains/losses on derivatives arising from hedging interest rate and currency exposures

- Litigation and transaction costs

- Derecognition of deferred consideration on acquisitions

The non-trading items have been included within the appropriate classifications in the consolidated income statement.

(c) The Group has restated its comparative year ended 31 December 2008 and half year ended 30 June 2008 income statements to reflect its Italian Retail operations as discontinued.

3. Segment information

Management has determined the operating segments based on the reports that are reviewed by the Board of directors to make strategic decisions.

The Group's continuing operating businesses are organised and managed separately as four principal segments according to the nature of the services provided as outlined below. The Group's reportable segments are:

- UK Retail: comprises betting activities in the shop estate in Great Britain.

- Other European Retail: comprises all activities connected with the Ireland (North and South), Belgium and Spain shop estates.

- eGaming: comprises betting and gaming activities from online operations.

- Telephone Betting: comprises activities relating to bets taken on the telephone, including High Rollers.

The discontinued operations comprise Italy, Paddington Casino and Hotels in 2009 and 2008.

The Board assesses the performance of operating segments based on a measure of profit before interest and tax. This measurement basis excludes the effect of non recurring or non-trading income and expenditure from the operating segments.

Half year ended 30 June 2009	Revenue	Profit before taxation and non-trading items	Profit before taxation and after non-trading items
	£m	£m	£m

Continuing operations:
UK Retail	343.6	82.1	82.1
Other European Retail	67.1	5.1	5.1
eGaming	84.6	20.8	20.8
Telephone Betting	69.8	57.0	57.0
Segment revenue and profit	565.1	165.0	165.0
International development costs		(1.1)	(1.1)
Corporate costs		(6.9)	(6.9)
Profit before tax and net finance costs		157.0	157.0
Net finance costs		(25.7)	(27.0)
Profit before taxation (continuing operations)		131.3	130.0

Discontinued operations
Italy	14.8	(4.4)	(32.2)
Casino	3.0	(0.3)	(3.6)
	17.8	(4.7)	(35.8)
Net finance costs		(0.3)	(0.3)
Profit before taxation (discontinued operations)		(5.0)	(36.1)

Group revenue and profit	582.9	126.3	93.9

Half year ended 30 June 2008	Restated revenue(1)	Restated profit before taxation and non-trading items(1)	Restated profit before taxation and after non-trading items(1)
	£m	£m	£m

Continuing operations:
UK Retail	371.1	98.3	93.7
Other European Retail	66.6	15.7	15.7
eGaming	86.6	26.2	26.2
Telephone Betting	80.5	42.2	42.2
Segment revenue and profit	604.8	182.4	177.8
International development costs		(2.2)	(2.2)
Corporate costs		(7.6)	(7.6)
Profit before tax and net finance costs		172.6	168.0
Net finance costs		(36.0)	(38.4)
Profit before taxation (continuing operations)		136.6	129.6

Discontinued operations
Italy	10.0	(2.6)	(2.9)
Casino	3.7	(0.3)	(7.8)
	13.7	(2.9)	(10.7)
Net finance costs		(0.3)	(0.3)
Profit before taxation (discontinued operations)		(3.2)	(11.0)

Group revenue and profit	618.5	133.4	118.6

(1) Refer to note 15 for details of the restatement

Year ended 31 December 2008	Restated revenue(1)	Restated profit before taxation and non-trading items(1)	Restated profit before taxation and after non-trading items(1)
	£m	£m	£m

Continuing operations:
UK Retail	723.1	187.9	177.7
Other European Retail	130.3	24.4	23.3
eGaming	172.2	55.1	59.1
Telephone Betting	125.6	83.2	83.2
Segment revenue and profit	1,151.2	350.6	343.3
International development costs		(4.9)	(4.9)
Corporate costs		(14.9)	(15.8)
Profit before tax and net finance costs		330.8	322.6
Net finance costs		(65.2)	(65.1)
Profit before taxation (continuing operations)		265.6	257.5

Discontinued operations
Italy	20.9	(6.9)	(7.3)
Casino	6.6	(1.1)	(8.6)
Hotels	-	-	(2.0)
	27.5	(8.0)	(17.9)
Net finance costs		(0.6)	(0.6)
Profit before taxation (discontinued operations)		(8.6)	(18.5)

Group revenue and profit	1,178.7	257.0	239.0

(1) Refer to note 15 for details of the restatement

4. Non-trading items

	Half year ended 30 June 2009	Restated half year ended 30 June 2008	Restated year ended 31 December 2008
Continuing operations:	£m	£m	£m


Net unrealised (losses)/gains on derivatives and (losses)/gains on retranslation of foreign currency borrowings	(1.3)	(2.4)	0.1
Loss on closure of UK Retail shops	-	(3.0)	(7.2)
Loss on closure of Other European Retail (Ireland) shops	-	-	(1.1)
Litigation and transaction costs	-	(1.6)	(3.9)
Derecognition of deferred consideration on acquisitions	-	-	4.0
Total non-trading items before taxation	(1.3)	(7.0)	(8.1)
Non-trading tax credit	0.4	0.7	1.1
Non-trading items after taxation	(0.9)	(6.3)	(7.0)

Non-trading items relating to discontinued operations are shown in note 6.

5. Taxation

The total tax charge on continuing operations was £19.3 million (half year ended 30 June 2008: £24.8 million; restated year ended 31 December 2008: £37.3 million). The taxation charge in the period relates to UK tax.

6. Discontinued operations

The Group is committed to sell its Italian Retail and the Casino operations and is actively looking to identify buyers for the Italian Retail business and is in discussions with potential buyers for the Casino business. The Italian Retail and the Casino operations have been treated as discontinued.

Loss from discontinued operations comprises the following:

	Half year ended 30 June 2009			Half year ended 30 June 2008			Year ended 31 December 2008
	Italy	Casino	Total	Italy	Casino	Total	Italy	Casino	Hotels	Total
		£m			£m	£m		£m	£m	£m
Revenue	14.8	3.0	17.8	10.0	3.7	13.7	20.9	6.6	-	27.5
Expenses	(19.2)	(3.3)	(22.5)	(12.6)	(4.0)	(16.6)	(27.8)	(7.7)	-	(35.5)
Loss before tax, finance costs and non-trading items	(4.4)	(0.3)	(4.7)	(2.6)	(0.3)	(2.9)	(6.9)	(1.1)	-	(8.0)
Net finance costs	(0.3)	-	(0.3)	-	(0.3)	(0.3)	-	(0.6)	-	(0.6)
Loss before tax and non-trading items	(4.7)	(0.3)	(5.0)	(2.6)	(0.6)	(3.2)	(6.9)	(1.7)	-	(8.6)
Impairment loss	(27.8)	(3.3)	(31.1)	-	(7.5)	(7.5)	-	(7.5)	-	(7.5)
Litigation and transaction costs	-	-	-	(0.3)	-	(0.3)	(0.4)	-	-	(0.4)
Loss on financial guarantee contracts	-	-	-	-	-	-	-	-	(2.0)	(2.0)
Loss before tax	(32.5)	(3.6)	(36.1)	(2.9)	(8.1)	(11.0)	(7.3)	(9.2)	(2.0)	(18.5)
Taxation	-	0.1	0.1	-	0.2	0.2	(1.5)	0.5	-	(1.0)
Loss for the period	(32.5)	(3.5)	(36.0)	(2.9)	(7.9)	(10.8)	(8.8)	(8.7)	(2.0)	(19.5)
Loss for the period before non-trading items	(4.7)	(0.2)	(4.9)	(2.6)	(0.4)	(3.0)	(8.4)	(1.2)	-	(9.6)

The major classes of assets and liabilities of the Italian Retail and the Casino business classified as held for sale are as follows:

	30 June 2009			30 June 2008		31 December 2008
	Italy	Casino	Total	Casino	Total	Casino	Total
	£m	£m	£m	£m	£m	£m	£m
Assets
Non-current assets
Goodwill and intangible assets	39.6	0.4	40.0	3.7	3.7	3.7	3.7
Property, plant and equipment	16.9	4.7	21.6	4.5	4.5	4.7	4.7
Other financial assets	1.0	-	1.0
	57.5	5.1	62.6	8.2	8.2	8.4	8.4

Current assets
Trade and other receivables	7.1	0.4	7.5	0.4	0.4	0.4	0.4
Cash and short-term deposits	3.3	0.5	3.8	0.4	0.4	0.6	0.6
	10.4	0.9	11.3	0.8	0.8	1.0	1.0

Total assets held for sale	67.9	6.0	73.9	9.0	9.0	9.4	9.4

Liabilities
Current liabilities
Trade and other payables	(9.7)	(1.0)	(10.7)	(1.0)	(1.0)	(0.9)	(0.9)
Corporation tax liabilities	(1.1)	-	(1.1)	-	-	-	-
	(10.8)	(1.0)	(11.8)	(1.0)	(1.0)	(0.9)	(0.9)

Non current liabilities
Interest bearing loans and borrowings	-	-	-	(6.2)	(6.2)	-	-
Other financial liabilities	(6.8)	-	(6.8)	-	-	-	-
	(6.8)	-	(6.8)	(6.2)	(6.2)	-	-

Total liabilities held for sale	(17.6)	(1.0)	(18.6)	(7.2)	(7.2)	(0.9)	(0.9)
Net assets held for sale	50.3	5.0	55.3	1.8	1.8	8.5	8.5

Following the decision to sell the Italian Retail business, the Group carried out an impairment review at 30 June 2009. An impairment charge of £27.8 million has been recorded against licences held within intangible assets.

The Italian Retail business is a cash generating unit within the Other European Retail segment and is now classified as a discontinued operation. Its recoverable amount was determined as the fair value less costs to sell, estimated based on discounted cash flows. The cash flows were based on budgets approved by management for the next two years, extrapolated thereafter using a 2.5% growth rate. This rate does not exceed the average long-term growth rate for the Italian market.

The key assumptions taken into account by management were its cash flow projections and the discount rate applied. The cash flow projections are based upon management's best estimate of future trends and performance and taking account of industry sources. The discount rate applied to the cash flow projections was 12%.

Additionally, an impairment charge of £3.3 million has been recorded in respect of the Casino business.

7. Dividends paid and proposed

Pence per share - proposed	Half year ended 30 June 2009	Half year ended 30 June 2008	Year ended 31 December 2008
	Pence	Pence	Pence

Interim	3.50	5.10	5.10
Final	-	-	9.05
	3.50	5.10	14.15

The dividends paid in the half years ended 30 June 2009 and 30 June 2008 were £54.4 million (9.05p per share) and £54.4 million (9.05p per share) respectively. An interim dividend of 3.50p per share (2008: 5.10p) was declared by the Directors at their meeting on 6 August 2009. These financial statements do not reflect this dividend payable.

8. Earnings per share

The calculation of adjusted earnings per share before non-trading items is included as it provides a better understanding of the underlying performance of the Group.

Continuing operations

Half year ended 30 June 2009	Earnings	Diluted earnings	Basic EPS pence per	Diluted EPS pence per
	£m	£m	share	share

Profit attributable to shareholders	110.7	110.7	18.4p	18.3p
Non-trading items net of tax	0.9	0.9	0.2p	0.2p
Adjusted profit attributable to shareholders	111.6	111.6	18.6p	18.5p

Restated half year ended 30 June 2008	Earnings	Diluted earnings	Basic EPS pence per	Diluted EPS pence per
	£m	£m	Share	Share

Profit attributable to shareholders	104.8	104.8	17.4p	17.3p
Non-trading items net of tax	6.3	6.3	1.1p	1.1p
Adjusted profit attributable to shareholders	111.1	111.1	18.5p	18.4p

Restated year ended 31 December 2008	Earnings	Diluted earnings	Basic EPS pence per	Diluted EPS pence per
	£m	£m	Share	Share

Profit attributable to shareholders	220.2	220.2	36.6p	36.4p
Non-trading items net of tax	7.0	7.0	1.2p	1.2p
Adjusted profit attributable to shareholders	227.2	227.2	37.8p	37.6p

Total Group

Half year ended 30 June 2009	Earnings	Diluted earnings	Basic EPS pence per	Diluted EPS pence per
	£m	£m	share	Share

Profit attributable to shareholders	74.7	74.7	12.4p	12.4p
Non-trading items net of tax	32.0	32.0	5.3p	5.3p
Adjusted profit attributable to shareholders	106.7	106.7	17.7p	17.7p

Half year ended 30 June 2008	Earnings	Diluted earnings	Basic EPS pence per	Diluted EPS pence per
	£m	£m	share	share

Profit attributable to shareholders	94.0	94.0	15.6p	15.5p
Non-trading items net of tax	14.1	14.1	2.4p	2.4p
Adjusted profit attributable to shareholders	108.1	108.1	18.0p	17.9p

Year ended 31 December 2008	Earnings	Diluted earnings	Basic EPS pence per	Diluted EPS pence per
	£m	£m	share	share

Profit attributable to shareholders	200.7	200.7	33.4p	33.2p
Non-trading items net of tax	16.9	16.9	2.8p	2.8p
Adjusted profit attributable to shareholders	217.6	217.6	36.2p	36.0p

The number of shares used in the calculation is shown below:

	Half year ended 30 June 2009	Half year ended 30 June 2008	Year ended 31 December 2008
	Millions	Millions	Millions

Weighted average number of ordinary shares for the purposes of basic earnings per share	601.1	602.1	601.3

Share options	0.2	1.4	0.8
Issue of contingently issuable shares	2.0	1.2	1.6
			30.0
Weighted average number of ordinary shares for the purposes of dilutive earnings per share	603.3	604.7	603.7

At 30 June 2009, excluding Treasury shares, there were 601.3 million 281/3p ordinary shares in issue (30 June 2008: 600.1 million, 31 December 2008: 600.6 million). Including Treasury shares there were 633.1 million 281/3p ordinary shares in issue (30 June 2008: 631.8 million, 31 December 2008: 632.4 million).

9. Property, plant and equipment

During the half year ended 30 June 2009, the Group acquired assets with a cost of £15.2 million (half year ended 30 June 2008: £24.9 million, year ended 31 December 2008: £58.0 million). There were no business combinations in the half year ended 30 June 2009 (in the half year ended 30 June 2008 the group acquired assets from business combinations at a cost of £1.2 million, year ended 31 December 2008: £1.2 million).

Assets with a net book value of £1.7 million were disposed of by the Group during the half year ended 30 June 2009 (half year ended 30 June 2008: £1.8 million, year ended 31 December 2008: £6.6 million).

At 30 June 2009 the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to £3.3 million (half year ended 30 June 2008: £1.3 million, year ended 31 December 2008: £4.2 million).

10. Net debt

The Group's net debt structure is as follows:


	30 June 2009			30 June 2008			31 December 2008
	Continuing	Discontinued	Total	Continuing	Discontinued	Total	Continuing	Discontinued	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m
Non-current assets
Derivatives	-	-	-	25.5	-	25.5	1.5	-	1.5

Current assets
Derivatives	50.8	-	50.8	-	-	-	115.1	-	115.1

Cash and short term deposits	17.1	3.8	20.9	28.3	0.4	28.7	26.4	0.6	27.0

Current liabilities
Bank overdrafts	(3.4)	-	(3.4)	(22.4)	-	(22.4)	(2.0)	-	(2.0)

Interest-bearing loans and borrowings	(419.2)	-	(419.2)	(175.5)	-	(175.5)	(457.7)	-	(457.7)
Derivatives	(2.1)	-	(2.1)	(0.1)	-	(0.1)	-	-	-

Non-current liabilities
Interest-bearing loans and borrowings	(598.2)	-	(598.2)	(888.1)	(6.2)	(894.3)	(659.8)	-	(659.8)
Derivatives	(10.8)	-	(10.8)	(1.2)	-	(1.2)	(11.2)	-	(11.2)


Net debt	(965.8)	3.8	(962.0)	(1,033.5)	(5.8)	(1,039.3)	(987.7)	0.6	(987.1)

11. Note to the statement of cash flows

Reconciliation of profit to net cash inflow from operating activities:

	Half year ended 30 June 2009	Restated half year ended 30 June 2008	Restated year ended 31 December 2008
	£m	£m	£m

Profit before tax and finance costs - continuing	157.0	172.6	330.8
Loss before tax and finance costs - discontinued	(4.7)	(2.9)	(8.0)
Profit before tax and finance costs	152.3	169.7	322.8

Depreciation - continuing	24.0	22.7	46.8
Depreciation - discontinued	1.3	1.3	1.3
Amortisation of intangible assets - continuing	3.2	3.8	6.2
Cost of share based payments	1.8	2.9	3.2
Increase in financial assets	(2.7)	(5.0)	(3.6)
(Increase)/decrease in trade and other receivables	(19.8)	25.5	44.6
Increase in other financial liabilities	1.5	1.2	3.5
Decrease in trade and other payables	(17.8)	(6.4)	(7.2)
(Decrease)/increase in provisions	(1.6)	(1.5)	1.5
Contribution to retirement benefit schemes	(3.5)	(3.0)	(6.0)
Share of results from joint venture	1.3	1.1	1.7
Share of results from associate	(1.7)	(1.5)	(3.7)
Other items	1.7	(2.8)	3.6
Cash generated by operations	140.0	208.0	414.7

Income taxes paid	(23.8)	(43.4)	(49.9)
Finance costs paid	(21.5)	(30.9)	(72.0)

Net cash inflow from operating activities	94.7	133.7	292.8

Cash and short term deposits in the balance sheet comprise:

	30 June 2009	30 June 2008	31 December 2008
	£m	£m	£m

Continuing operations
Cash at bank and in hand	17.1	28.3	26.4
	17.1	28.3	26.4

Discontinued operations
Cash at bank and in hand	3.8	0.4	0.6
	3.8	0.4	0.6

Total	20.9	28.7	27.0

Cash and cash equivalents in the cash flow statement comprise cash at bank and other short-term highly liquid investments with a maturity of three months or less and overdrafts:

	30 June 2009	30 June 2008	31 December 2008
	£m	£m	£m

Continuing operations
Cash at bank and in hand	17.1	28.3	26.4
Bank overdrafts (included in current liabilities)	(3.4)	(22.4)	(2.0)
	13.7	5.9	24.4

Discontinued operations
Cash at bank and in hand	3.8	0.4	0.6
	3.8	0.4	0.6

Total	17.5	6.3	25.0

12. Business combinations

There were no acquisitions in the half year ended 30 June 2009.

In the half year ended 30 June 2008, the Group acquired the following interests for a consideration of £142.5 million (cash paid of £139.0 million, deferred consideration of £2.6 million and acquisition costs of £0.9 million) with net assets at fair value of £137.6 million, resulting in goodwill on acquisition of £4.9 million.

	Consideration £m	Interest %	Date of acquisition


Agenzie Scommesse SRL	17.6	100	4 February 2008
Eastwood Bookmakers	118.1	100	6 February 2008
McCartan Bookmakers	6.8	100	1 April 2008
	142.5

For the year ended 31 December 2008, Agenzie Scommesse SRL contributed £6.9 million revenue and £1.7 million operating profit to the Group. Eastwood Bookmakers contributed £20.1 million revenue and £7.3 million operating profit to the Group. McCartan Bookmakers contributed £1.6 million revenue and £0.6 million operating profit to the Group.

If the acquisitions had been completed on the first day of the financial year ended 31 December 2008, Group revenue for the full year ended 31 December 2008 would have been £3.7 million higher and Group profit attributable to equity holders of the parent Company would have been £1.6 million higher than disclosed in the income statement.

13. Related party transactions

The following table provides the total amount of trading transactions, which have been entered into with related parties.

	Half year ended 30 June 2009	Half year ended 30 June 2008	Year ended 31 December 2008
	£m	£m	£m

Equity investment
- Joint venture	3.1	0.8	1.8
Additional loans provided
- Joint venture partner	2.7	0.8	2.1
Dividends received
- Associate	-	-	3.5
Sundry expenditures
- Associate	16.1	15.5	33.7

The following table provides the related party outstanding balances.

	Half year ended 30 June 2009	Half year ended 30 June 2008	Year ended 31 December 2008
	£m	£m	£m

Loan balances outstanding
- Joint venture partner	5.3	1.3	2.6
Other payables outstanding
- Associate	2.2	2.3	2.4
Other receivables outstanding
- Associate	-	0.2	1.6

14. Contingent liabilities

The following contingent liabilities exist at 30 June 2009:

Guarantees have been given in the ordinary course of business in respect of loans and derivative contracts granted to subsidiaries amounting to £1,013.9 million (31 December 2008: £1,113.6 million, 30 June 2008: £1,065.5 million). In addition, subsidiaries have guaranteed loans of £0.2 million (31 December 2008: £0.4 million, 30 June 2008: £0.4 million) given in the normal course of business to other subsidiary companies.

Bank guarantees have been issued on behalf of subsidiaries and the joint venture with a value of £32.9 million (31 December 2008: £37.2 million, 30 June 2008: £22.1 million).

The Group has given guarantees to third parties in respect of lease liabilities of former subsidiaries within the disposed hotels division. The Group received an indemnity from Hilton Hotels Corporation (HHC), at the time of the hotels disposal, in relation to any loss the Group may subsequently incur under these third party guarantees. The guarantees expire between 2009 and 2042 and the lease liabilities comprise a combination of minimum contractual and turnover based elements.

The maximum liability exposure in respect of the guarantees for all periods up to 2042 is £928.9 million (30 June 2008: £981.0 million, 31 December 2008: £943.1 million), with a maximum indemnity receivable of the same amount. Included in the maximum liability exposure is £522.9 million (30 June 2008: £534.2 million, 31 December 2008: £528.5 million) in relation to the turnover based element of the hotel rentals and £406.0 million (30 June 2008: £446.8 million, 31 December

2008: £414.6 million) in relation to the minimum contractual based element. The maximum liability represents the total of all guaranteed rentals under the non-cancellable agreements into which the Group has entered.

The net present value of the maximum exposure at 30 June 2009 is £415.9 million (30 June 2008: £458.2 million, 31 December 2008: £430.1 million). Included in the net present value of the maximum exposure is £213.4 million (30 June 2008: £221.4 million, 31 December 2008: £219.1 million) in relation to the turnover based element of the hotel rentals and £202.5 million (30 June 2008: £236.8 million, 31 December 2008: £211.0 million) in relation to the minimum contractual based element.

The Group monitors its exposure under these guarantees on a regular basis and seeks, where appropriate, to novate its obligations.

The financial guarantees liability has been valued using a probability based model to estimate the net present value of the liabilities payable in the event of a default by the hotels covered by the guarantees, and the probability of such a default and new tenants being identified.

The financial guarantee asset has been valued on a similar basis to the liability, taking account of the credit profile of the counterparty, HHC, to assess the likelihood of HHC continuing to be solvent at the time of any future potential claim under the indemnity. At 30 June 2009 the Group has recognised a financial liability of £9.0 million (30 June 2008: £10.0 million, 31 December 2008: £9.0 million) in respect of these guarantees together with a financial asset of £nil (30 June 2008: £3.0 million, 31 December 2008: £nil) in relation to the indemnity.

The key assumption in the probability model is the hotel default rate. A rate of 2.0% has been used as at 30 June 2009 (30 June 2008: 1.2%, 31 December 2008: 2.0%). A 0.5 percentage point increase in the default rate would increase the financial liability by £1.0 million.

15. Restatement of income statement and segment information note for prior periods

Half year ended 30 June 2008	Reported	Adjustment	Restated

	Before non- trading items	Discontinued operations	Before non-trading items

	Total	Total	Total
	£m	£m	£m
Continuing operations
Amounts staked(1)	8,785.8	(61.5)	8,724.3

Revenue	614.8	(10.0)	604.8
Cost of sales before depreciation and amortisation	(377.6)	9.3	(368.3)
Administrative expenses	(39.8)	2.0	(37.8)
Share of results from joint venture and associate	0.4	-	0.4
EBITDA	197.8	1.3	199.1
Depreciation and amounts written off non-current assets	(27.8)	1.3	(26.5)
Profit before tax and finance costs	170.0	2.6	172.6
Finance costs	(36.3)	-	(36.3)
Finance income	0.3	-	0.3
Profit before taxation	134.0	2.6	136.6
Income tax expense	(25.5)	-	(25.5)
Profit for the period - continuing operations	108.5	2.6	111.1

Discontinued operations
Loss for the period from discontinued operations	(0.4)	(2.6)	(3.0)
Profit for the period	108.1	-	108.1

Attributable to:
Equity holders of the parent	108.1	-	108.1
Earnings per share from continuing operations:
- basic	18.0p	0.5p	18.5p
- diluted	17.9p	0.5p	18.4p
Earnings per share on profit for the period:
- basic	18.0p	-	18.0p
- diluted	17.9p	-	17.9p
Proposed dividends	5.10p	-	5.10p

(1) Amounts staked does not represent the Group's statutory revenue and comprises the total amount staked by customers on betting and gaming activities.

Half year ended 30 June 2008	Reported	Adjustment	Restated

	After non-trading items	Discontinued operations	After non-trading items

	Total	Total	Total
	£m	£m	£m
Continuing operations
Amounts staked(1)	8,785.8	(61.5)	8,724.3

Revenue	614.8	(10.0)	604.8
Cost of sales before depreciation and amortisation	(378.4)	9.3	(369.1)
Administrative expenses	(41.7)	2.3	(39.4)
Share of results from joint venture and associate	0.4	-	0.4
EBITDA	195.1	1.6	196.7
Depreciation and amounts written off non - current assets	(30.0)	1.3	(28.7)
Profit before tax and finance costs	165.1	2.9	168.0
Finance costs	(67.8)	-	(67.8)
Finance income	29.4	-	29.4
Profit before taxation	126.7	2.9	129.6
Income tax expense	(24.8)	-	(24.8)
Profit for the period - continuing operations	101.9	2.9	104.8

Discontinued operations
Loss for the period from discontinued operations	(7.9)	(2.9)	(10.8)
Profit for the period	94.0	-	94.0

Attributable to:
Equity holders of the parent	94.0	-	94.0
Earnings per share from continuing operations:
- basic	16.9p	0.5p	17.4p
- diluted	16.8p	0.5p	17.3p
Earnings per share on profit for the period:
- basic	15.6p	-	15.6p
- diluted	15.5p	-	15.5p
Proposed dividends	5.10p	-	5.10p

(1) Amounts staked does not represent the Group's statutory revenue and comprises the total amount staked by customers on betting and gaming activities.

Year ended 31 December 2008	Reported	Adjustment	Restated

	Before non- trading items	Discontinued operations	Before non-trading items

	Total	Total	Total
	£m	£m	£m
Continuing operations
Amounts staked (1)	16,647.7	(123.2)	16,524.5

Revenue	1,172.1	(20.9)	1,151.2
Cost of sales before depreciation and amortisation	(716.3)	20.1	(696.2)
Administrative expenses	(79.6)	6.4	(73.2)
Share of results from joint venture and associate	2.0	-	2.0
EBITDA	378.2	5.6	383.8
Depreciation and amounts written off non-current assets	(54.3)	1.3	(53.0)
Profit before tax and finance costs	323.9	6.9	330.8
Finance costs	(67.4)	-	(67.4)
Finance income	2.2	-	2.2
Profit before taxation	258.7	6.9	265.6
Income tax expense	(39.9)	1.5	(38.4)
Profit for the period - continuing operations	218.8	8.4	227.2

Discontinued operations
Loss for the period from discontinued operations	(1.2)	(8.4)	(9.6)
Profit for the period	217.6	-	217.6

Attributable to:
Equity holders of the parent	217.6	-	217.6
Earnings per share from continuing operations:
- basic	36.4p	1.4p	37.8p
- diluted	36.2p	1.4p	37.6p
Earnings per share on profit for the period:
- basic	36.2p	-	36.2p
- diluted	36.0p	-	36.0p
Proposed dividends	9.05p	-	9.05p

(1) Amounts staked does not represent the Group's statutory revenue and comprises the total amount staked by customers on betting and gaming activities.

Year ended 31 December 2008	Reported	Adjustment	Restated

	After non- trading items	Discontinued operations	After non-trading items

		Total	Total
	£m	£m	£m
Continuing operations
Amounts staked (1)	16,647.7	(123.2)	16,524.5

Revenue	1,172.1	(20.9)	1,151.2
Cost of sales before depreciation and amortisation	(717.4)	20.1	(697.3)
Administrative expenses	(79.9)	6.8	(73.1)
Share of results from joint venture and associate	2.0	-	2.0
EBITDA	376.8	6.0	382.8
Depreciation and amounts written off non-current assets	(61.5)	1.3	(60.2)
Profit before tax and finance costs	315.3	7.3	322.6
Finance costs	(191.1)	-	(191.1)
Finance income	126.0	-	126.0
Profit before taxation	250.2	7.3	257.5
Income tax expense	(38.8)	1.5	(37.3)
Profit for the period - continuing operations	211.4	8.8	220.2

Discontinued operations
Loss for the period from discontinued operations	(10.7)	(8.8)	(19.5)
Profit for the period	200.7	-	200.7

Attributable to:
Equity holders of the parent	200.7	-	200.7
Earnings per share from continuing operations:
- basic	35.2p	1.4p	36.6p
- diluted	35.0p	1.4p	36.4p
Earnings per share on profit for the period:
- basic	33.4p	-	33.4p
- diluted	33.2p	-	33.2p
Proposed dividends	9.05p	-	9.05p

(1) Amounts staked does not represent the Group's statutory revenue and comprises the total amount staked by customers on betting and gaming activities.

Half year ended 30 June 2008	Reported revenue	Spain reclassification	DiscontinuedItaly	Restated revenue
	£m	£m	£m	£m

Continuing operations:
UK Retail	371.1	-	-	371.1
Other European Retail	76.6	-	(10.0)	66.6
eGaming	86.6	-	-	86.6
Telephone Betting	80.5	-	-	80.5
Total continuing	614.8	-	(10.0)	604.8
Discontinued operations
Italy	-	-	10.0	10.0
Casino	3.7	-	-	3.7
Total discontinued	3.7	-	10.0	13.7
Group	618.5	-	-	618.5

Half year ended 30 June 2008	Reported profit before taxation and non-trading items	Spain reclassification	DiscontinuedItaly	Restated profit before taxation and non- trading items
	£m	£m	£m	£m

Continuing operations:
UK Retail	98.3	-	-	98.3
Other European Retail	14.7	(1.6)	2.6	15.7
eGaming	26.2	-	-	26.2
Telephone Betting	42.2	-	-	42.2
Total continuing	181.4	(1.6)	2.6	182.4
International Development costs(1)	(3.8)	1.6	-	(2.2)
Corporate costs	(7.6)	-	-	(7.6)
Total before net finance costs	170.0	-	2.6	172.6
Net finance costs	(36.0)	-	-	(36.0)
Total continuing operations	134.0	-	2.6	136.6
Discontinued operations:
Italy	-	-	(2.6)	(2.6)
Casino	(0.3)	-	-	(0.3)
	(0.3)	-	(2.6)	(2.9)
Net finance costs	(0.3)	-	-	(0.3)
	(0.6)	-	(2.6)	(3.2)
Group	133.4	-	-	133.4

(1) classified as Other in 2008

Half year ended 30 June 2008	Reported profit before taxation and after non-trading items	Spain reclassification	DiscontinuedItaly	Restated profit before taxation and after non- trading items
	£m	£m	£m	£m

Continuing operations:
UK Retail	93.7	-	-	93.7
Other European Retail	14.4	(1.6)	2.9	15.7
eGaming	26.2	-	-	26.2
Telephone Betting	42.2	-	-	42.2
Total continuing	176.5	(1.6)	2.9	177.8
International Development costs(1)	(3.8)	1.6	-	(2.2)
Corporate costs	(7.6)	-	-	(7.6)
Total before net finance costs	165.1	-	2.9	168.0
Net finance costs	(38.4)		-	(38.4)
Total continuing operations	126.7	-	2.9	129.6
Discontinued operations:
Italy	-	-	(2.9)	(2.9)
Casino	(7.8)	-	-	(7.8)
	(7.8)	-	(2.9)	(10.7)
Net finance costs	(0.3)	-	-	(0.3)
	(8.1)	-	(2.9)	(11.0)
Group	118.6	-	-	118.6

(1) classified as Other in 2008

Year ended 31 December 2008	Reported revenue	Spain reclassification	DiscontinuedItaly	Restated revenue
	£m	£m	£m	£m

Continuing operations:
UK Retail	723.1	-	-	723.1
Other European Retail	151.2	-	(20.9)	130.3
eGaming	172.2	-	-	172.2
Telephone Betting	125.6	-	-	125.6
Total continuing	1,172.1	-	(20.9)	1,151.2
Discontinued operations
Italy	-	-	20.9	20.9
Casino	6.6	-	-	6.6
Total discontinued	6.6	-	20.9	27.5
Group	1,178.7	-	-	1,178.7

Year ended 31 December 2008	Reported profit before taxation and non-trading items	Spain reclassification	DiscontinuedItaly	Reported profit before taxation and non- trading items
	£m	£m	£m	£m

Continuing operations:
UK Retail	187.9	-	-	187.9
Other European Retail	20.6	(3.1)	6.9	24.4
eGaming	55.1	-	-	55.1
Telephone Betting	83.2	-	-	83.2
Total continuing	346.8	(3.1)	6.9	350.6
International Development costs(1)	(8.0)	3.1	-	(4.9)
Corporate costs	(14.9)	-	-	(14.9)
Total before net finance costs	323.9	-	6.9	330.8
Net finance costs	(65.2)	-	-	(65.2)
Total continuing operations	258.7	-	6.9	265.6
Discontinued operations
Italy	-	-	(6.9)	(6.9)
Casino	(1.1)	-	-	(1.1)
	(1.1)	-	(6.9)	(8.0)
Net finance costs	(0.6)	-	-	(0.6)
	(1.7)	-	(6.9)	(8.6)
Group	257.0	-	-	257.0

(1) classified as Other in 2008

Year ended 31 December 2008	Reported profit before taxation and after non-trading items	Spain reclassification	DiscontinuedItaly	Reported profit before taxation and after non- trading items
	£m	£m	£m	£m

Continuing operations:
UK Retail	177.7	-	-	177.7
Other European Retail	19.1	(3.1)	7.3	23.3
eGaming	59.1	-	-	59.1
Telephone Betting	83.2	-	-	83.2
Total continuing	339.1	(3.1)	7.3	343.3
International Development costs(1)	(8.0)	3.1	-	(4.9)
Corporate costs	(15.8)	-	-	(15.8)
Total before net finance costs	315.3	-	7.3	322.6
Net finance costs	(65.1)	-	-	(65.1)
Total continuing operations	250.2	-	7.3	257.5
Discontinued operations
Italy	-	-	(7.3)	(7.3)
Casino	(8.6)	-	-	(8.6)
Hotels	(2.0)	-	-	(2.0)
	(10.6)	-	(7.3)	(17.9)
Net finance costs	(0.6)	-	-	(0.6)
	(11.2)	-	(7.3)	(18.5)
Group	239.0	-	-	239.0

(1) classified as Other in 2008

16. Post balance sheet events

The €464.5 million 6.25% Eurobond was repaid on 17 July 2009, using existing facilities.

Following approval by shareholders at the 2009 Annual General Meeting, the cancellation of the Company's share premium account was confirmed by the Court and became effective on 31 July 2009. On 31 July 2009, £2,137.4 million was transferred from share premium to other reserves.

Statement of Director's Responsibilities

The directors confirm that this condensed consolidated interim financial information has been prepared in accordance with IAS 34 as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

- an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year, and

- material related-party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

The directors of Ladbrokes plc are listed in the Group's annual report and accounts for the year ended 31 December 2008, with the following changes in the period: Sir Ian Robinson and Alan Ross resigned on 15 May 2009. A list of current directors is maintained on the Ladbrokes plc website www.ladbrokesplc.co.uk.

By order of the Board

C Bell B G Wallace

6 August 2009

Independent review report to Ladbrokes plc

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the interim report for the half year ended 30 June 2009 which comprises the Interim consolidated income statement, Interim consolidated statement of comprehensive income, Interim consolidated balance sheet, Interim consolidated statement of changes in equity, Interim statement of consolidated cash flow and the related notes 1 to 16. We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The interim report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 2, the annual financial statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this interim report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim report for the half year ended 30 June 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

Ernst & Young LLPLondon 6 August 2009

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR DGGGRGKMGLZZ

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