25 February 2014 – Final Results
In what was a challenging year in 2013, the group has seen revenues, profits and earnings per share decline although it has maintained the total dividend for the year at 8.9p. The group maintains that while the results were disappointing it made good operational progress, with a long term partnership signed with Playtech to accelerate digital revenue growth from the second half of this year and other initiatives aimed at improving this side of the business. The group also improved its UK retail presence opening 121 new shops in higher footfall locations. The group has also made progress in its markets in Spain, China and Australia. The first half of the current year looks set to be about further improvements with the second half expected to be about growth. Perhaps of most interest to investors is the fact that the company has committed to at least maintain the dividend in 2014, meaning that the shares yield almost 5.9% at the current price. Although the jury is out on the overall recovery prospects for the group the yield is high enough to justify a recommendation of at least a HOLD/BUY.