William Hill profit warning

Betting giant William Hill has warned over full-year earnings as regulatory and tax changes hit its online growth and amid ongoing tough conditions for its high street betting shops.

Full-year operating profit is now expected to be in the range of £225 million to £245m. William Hill said regulatory and tax changes would reduce online profits by £20m in 2018 and £25m in 2019.

It said net effect would be helped by an otherwise strong underlying performance in online gambling – with accounts up 11% in the year to date – and the division set to return to robust earnings growth from 2020 onwards.

It was also knocked by weaker football and racing results, including three loss-making weeks on horseracing during the summer and customer-friendly football results during the international break in October.

This offset a boost from the later stages of the World Cup in the second half of its financial year.

Chief executive Philip Bowcock said: “We have benefited from the later stages of the World Cup but otherwise football and racing margins have been weaker than expected.”

Shares in William Hill fell 12.90p to close at 200.70p. Embattled fashion retailer New Look could close as many as 100 UK stores as part of a radical turnaround plan to cut costs and improve profitability.

This includes the 60 stores marked for closure under a company voluntary arrangement (CVA) approved in March.

Executive chairman Alistair McGeorge said yesterday the number which will definitely close after negotiations with landlords is at 85.

Discussions are ongoing regarding a further 13 stores, of which Mr McGeorge said around half were likely to close.

The company’s new strategy has so far yielded higher profits, but sales continue to decline.

Picture: Kim Cessford.