Bookies scoop £20m jackpot

Ladbrokes and Foxy Bingo chiefs land bumper windfall selling shares

THe bosses of Foxy Bingo owner GVC have sold shares worth nearly £20m – sending the stock price plummeting.

in a move that stunned investors, chief executive kenny Alexander, 49, scooped £13.7m offloading more than 2m shares for £6.66 each.

And chairman Lee Feldman, 51, landed a £6m payday after dumping 900,000 shares in the owner of bookmaker Ladbrokes at the same price.

The share sale sent shockwaves through the City and the GVC stock plunged 14pc, or 95.5p, to 588.5p on a brutal day for investors.

The slump, the worst for nine years, came days before the Cheltenham Festival, a crucial week for bookies when punters bet millions on one of the world’s most prestigious horse racing events.

The GVC share price has halved in value since peaking at £11.70 last summer and the company has lost its place in the FTSe 100 index.

Russ Mould, investment director at AJ Bell, said: ‘There is a widely used phrase in investing that says “follow the money”. in GVC’s case, shareholders are following this advice to the letter as the gambling company’s share price dives amid news of hefty share sales by directors. investors are clearly spooked by this news and are also selling down.’

Alexander, who was paid £20.7m in 2017 and £22.2m in 2016, still owns 666,666 GVC shares, worth £3.9m at last night’s close. Feldman, who was paid £10.1m in 2017 and £9.2m in 2018, has 287,408 remaining shares worth £1.7m.

The share sale came just days after GVC reported a huge jump in annual revenues, from £789.9m to £2.9bn, following the acquisition of Ladbrokes Coral for £3.2bn last year.

But the company is bracing itself for a financial hit from a looming cut to the maximum stake allowed on fixed odds betting terminals from £100 to £2. The machines have been dubbed the crack cocaine of the gambling industry for their addictive nature.

Alexander attempted to calm nerves, saying in a statement that he and Feldman remained committed to the firm.

‘We have both held large personal shareholdings in GVC for a long time and continue to do so,’ he said.

‘Both of us remain fully committed to GVC and, whilst i continue to have the support of our shareholders, i’m here for the long term and at the very least i have a current plan that will take three plus years to accomplish. We reported excellent results earlier this week and we both remain convinced of the exciting prospects for the business. Therefore while we continue at GVC we will not reduce our holdings below the current levels.’

GVC was set up in 2004 and owns brands including Bwin, Sportingbet, Foxy Bingo, Party Poker and Gala Casino. Until last year, it was an online-only business, but the takeover of Ladbrokes Coral gave it 3,500 betting shops and two of the best known names in British book-making.

The Ladbrokes deal handed disgraced banker Andy Hornby an £8m windfall. As chief executive of Halifax owner HBOS, Hornby, 52, oversaw its demise in the financial crisis following years of reckless lending.

He later became chief operating officer at Ladbrokes Coral and received £8m for his shares in the company when it was bought by GVC, where he still works.

GVC was hit by a furious backlash from investors over bosses’ pay at its annual meeting last year. Shareholders were angry at massive payouts to Alexander – who had been handed £45m in share options since 2016 – and Feldman, who was given options worth £22.5m at the time.

This triggered a rebellion against the pay decision by 44pc of shareholders.

Meanwhile, non- executive director Peter isola was forced to quit at the same meeting after a revolt because of questions over his independence.