10th Jan 2008 07:01
William Hill PLC10 January 2008 WILLIAM HILL PLC Trading Update For the year ended 1 January 2008, a 53 week period, the Board currently expectsfull year earnings before interest, tax and exceptional items to be around £285m*. In overall terms the Retail business (approximately 82% of total Group grosswin) has performed strongly and the Telephone channel (approximately 5% of totalGroup gross win) has delivered a stable performance. The performance of theInternet business (approximately 12% of total Group gross win) has continued tobe disappointing reflecting the legacy technology issues relating to thesportsbook as well as the competitive market environment. In light of the ongoing technology issues impacting the Internet sportsbook theBoard instigated an independent review in November 2007. Following this reviewthe Board has decided to terminate the NextGen technology programme and toimplement an externally developed third party technology solution. This isexpected to be implemented by the end of the year. This decision will result inan exceptional non-cash impairment charge in relation to the existing NextGentechnology programme of approximately £22m* in the 2007 results andrestructuring charges of approximately £4m* in 2008. We are in discussions with Turf TV and the Board remains confident in theoutlook for the Retail business but anticipates that the performance of theInternet channel will remain challenged until the new technology solution isimplemented. The CEO search is progressing and the Board will update the market whenappropriate. The Group expects to release its preliminary announcement of the 2007 full yearresults on 27th February 2008. * Subject to audit Enquiries: Charles Scott, Executive Chairman Tel: 020 8918 3910Simon Lane, Group Finance Director Tel: 020 8918 3942Nilay Patel, Corporate Finance Manager Tel: 020 8918 3736Fiona Antcliffe/ Deborah Spencer, Brunswick Tel: 020 7404 5959 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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