William Hill plc

More protected financial position is the standout

  • Sectors : Gaming
  • Companies : William Hill plc

Ratings and price correct at time of issue.

  • William Hill plc

    Closing Price: 107p

  • RATING 13/02/14

  • PREVIOUS RATING 16/02/11

    OUTPERFORM

DAVY VIEW

With over 70% of its top line impacted by current developments, a substantially smaller profit base than peers and a balance sheet with little excess capacity, William Hill’s (WMH) struggles are multi-layered. However, this morning’s update will alleviate many near-term (balance sheet) concerns. While welcome, it is also a reminder that the company’s medium-term capital allocation priority will be to strengthen its financial position. It will leave little capacity to fund growth, structurally impacting the equity thesis in our view.

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May 15 2020, 08:20 IST/BST

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