30 April 2014 – interim management statement
A fairly uneventful trading statement for the first quarter has been released. Performance was broadly in line and although there are challenges from recent tax increases, this was already priced in. The company has reiterated its commitment to pay a dividend of at least 8.9p in the current year, translating into a yield of 6.4% at the current share price. There is plenty of work ahead to be competitive in what is now a tough industry to generate profits in. Nevertheless, Ladbrokes’ track record and brand should count for more than the current share price suggests and at this level the shares are a BUY.