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1
ABSTRACT
As an investment analysts team for World Wealth Management, the team investigates
the fiscal term for most recent three years of two gamble companies, Paddy
Power Betfair Plc and William Hill Plc namely business performance from 2013 to 2015
upon a request from Dave Jones who is a long-time client. The team
applies appropriate financial ratios and tools to the annual figures of both companies and
decide tendency in their business and assess their present and past performance.
Also, the team analyse the gambling industry to obtain further understanding of the sector
where the two companies take part. The outcomes from research and analysis that the
team has conducted will be used to summarise to present to Dave Jones, who
was interested in the expansion of his portfolio, which company will be the better choice
of his investment?
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Table of Contents
1.0 Introduction .......................................................................................................... 5
2.0 Financial Analysis and Interpretation.................................................................... 6
2.1 Profitability ............................................................................................................ 6
2.1.1 Return on Capital Employed .......................................................................... 6
2.1.2 Net Profit Margin ............................................................................................ 7
2.1.3 Gross Profit Margin ........................................................................................ 9
2.2 Efficiency ............................................................................................................ 10
2.2.1 Fixed assets turnover .................................................................................. 10
2.2.2 Sale per employee ....................................................................................... 11
2.3 Liquidity .............................................................................................................. 12
2.4 Gearing .............................................................................................................. 14
2.4.1 Capital Gearing ............................................................................................ 14
2.4.2 Interest cover ............................................................................................... 15
2.5 Investment .......................................................................................................... 17
2.5.1 Earnings per Share ...................................................................................... 17
2.5.2 Dividend per Share ...................................................................................... 19
2.5.3 Dividend Payout........................................................................................... 20
3.0 Vertical and horizontal analysis .......................................................................... 21
3.1 Industry Analysis ................................................................................................ 21
3.1.1 Future of Gambling industry in the UK ......................................................... 22
3.1.2 Customers ................................................................................................... 22
3.2 Paddy Power Betfair plc ..................................................................................... 23
3.2.1 Growth ......................................................................................................... 23
3.2.2 Shareholders ............................................................................................... 24
3.2.3 Performance ................................................................................................ 24
3.2.4 Products ...................................................................................................... 25
3.2.5 Consumers .................................................................................................. 25
3.2.6 Customer Support........................................................................................ 26
3.3 William Hill Plc .................................................................................................... 26
3.3.1 Growth ......................................................................................................... 26
3.3.2 Shareholders ............................................................................................... 27
3.3.3 Performance ................................................................................................ 28
3.3.4 Products ...................................................................................................... 28
3.3.5 Consumers .................................................................................................. 29
3.3.6 Customer Support........................................................................................ 29
3.3.7 Strategies..................................................................................................... 29
3.3.8 Future .......................................................................................................... 30
3.3.9 Competitors ................................................................................................. 30
3
3.3.10 Average ..................................................................................................... 31
4.0 Summary of Analysis & Research ...................................................................... 32
5.0 Recommendation for Investment........................................................................ 33
Reference .................................................................................................................... 34
Appendices .................................................................................................................. 36
Vertical and Horizontal calculation ............................................................................... 36
Table of Figures
4
1.0 Introduction
The team acquired annual reports of both the companies, Paddy Power Betfair Plc and
William Hill Plc, and analysed the released financial statements of 2013, 2014 and 2015
two, several ratios i.e. the profitability, investment, liquidity, efficiency, gearing ratios and
tools like vertical and horizontal analysis is computed according to the financial reports.
5
2.0 Financial Analysis and Interpretation
2.1 Profitability
Profitability is one of the critical indexes to check the performance of the company. First
of all, the team has examined the profits of both the companies to know if they are
adequate.
Return on Capital Employed (ROCE) is the index to measure returns i.e. profitability from
6
The ROCE of William Hill has slightly decreased from 14.53% in 2013 to 13.32% in
2015, Paddy Power has substantially increased their ROCE of approximately 20% from
41.89% in 2013 to 61.99% in 2015. This is because their Operating profit has dramatically
the period, ROCE of Paddy Power is higher than the market average from FAME. On the
other hand, ROCE of William Hill is extremely low compared with a market average in the
period.
Net Profit Margin is one of the indicators that are the most important to see the financial
health of the company. The higher Net Profit Margin shows the higher competitiveness of
the company in the market. The indicator shows how much profit of each pound the
7
Figure 2: Net Profit Margin
Both companies have reduced their Net Profit Margin from 2013 to 2015 and what can
be considered as factors are growing cost of sales and expenses. As for William Hill, the
cost of sales increased about 20% in 2015 compared with one in 2014. This is because
MGD rate increased from 20% to 25% on 1st March 2015. Shrinking of Net Profit Margin
As for Paddy Power, their revenue increased by approximately 24% in 2015 compared
with one in 2014. However, their expenses rise 17 % in 2015 from 2014 and especially
mostly related to technology invested in product development and the opening of new
shops.
8
2.1.3 Gross Profit Margin
Gross Profit Margin expresses the percentage of profit by measuring how much revenue
a company has earned. It is affected by many items such as changes in sales and
marketing strategy.
Gross Profit
Gross Profit Margin = x 100
Revenue
Gross profit margin of Paddy Power and William Hill shows similar trend i.e. it has
gradually declined during the period. The ratios are higher than the market average all
the time. The reason why the ratio of Paddy Power decreased is improving their direct
betting costs which include betting taxes, software supplier costs, and other direct betting
costs. For the case of William Hill, the major reasons of decrease are reducing revenue
9
and increase in the cost of sales, mainly Point of Consumption Tax affected. The results
2.2 Efficiency
Efficiency ratio is used to show if the company uses its assets and liabilities usefully.
____________________________
10
This ratio measures how efficiently the company is going to manage its own investment.
The higher ratio means, the more efficient the company is; this means the company
has an efficient way to use its assets to make sure the company has enough assets to
generate sales. While comparing the data, it easy to find the Paddy Power has a higher
Numbers of employees
Sales per employee is a ratio which shows how much sales is made by every employee.
A high ratio explains how effective the employees are. Paddy power has a higher ratio
11
than William Hill. The sales per employee is a good measure of personal productivity.
From 2013-2014 William Hill has an increase of this ratio, while Paddy power is
decreasing but still has a higher ratio than the William Hill.
2.3 Liquidity
12
Short-term solvency is mainly used to determine the company's ability to pay short-term debts,
which is usually occurred due to the need of production and business and the period is shorter
than a year. On the basis of the current ratio, inventory items whose liquidity are weaker, have
to be excepted from the assets used for evaluating debt repayment ability in the liquid ratio. In
other words, it can help to determine whether there are adequate liquid assets to meet the
According to the above figure, we can see, the overall short-term solvency capacity of
William Hill has been below the level of Paddy Power for three years in a horizontal view.
Besides, at the vertical sense, Paddy Power's index has risen in 2014 at about 1.4, but
the improvement has not been maintained, and it fell sharply to 0.8 in 2015. William Hill's
solvency has continued to decline in the past three years, from the level of more than 0.8
in 2013, fall to only about 0.5 in 2015, from which we can see the situation is worsening.
13
2.4 Gearing
Gearing ratio tells us about how solid a company is to tackle or to repay its debt. Gearing
ratio tells how solid the company is considering to long-term debt because the short-term
14
Gearing ratio should be above 10% and below 50% for it to be interpreted as generously.
William Hill in 2013, as many as 47% of the funding covered by long-term debt which is
not positive for the company. Paddy Power did not have any long-term debt in 2013-2014,
but in 2015 they made long-term loans which are 74% of the total long-term financing. If
we also look at the balance sheet of FAME Shareholders funds, we will discover that it
For long-term borrowing of a company, it is usually accompanied by the need to pay the
interest at a regular time every year. Ability to repay the interest in time is also one of the
Interest Paid
15
This indicator helps companies to identify the relationship between borrowing costs and
revenue that is to clarify whether the business achieves greater returns on the basis of
the borrowing capital. The computational results are shown in the following table:
According to the chart above, the two companies showed a big difference at this indicator,
William Hill saw a slight decline in this interest coverage ratio for nearly three years.
However, Paddy Power has demonstrated a shocking coverage situation, which although
there was a significant decrease than the previous two years in 2015.
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2.5 Investment
Earnings per share (EPS) is the segment of an organisation's benefit that is distributed to
deciding a stock's esteem, and it involves the "E" some portion of the P/E (value income)
17
Earnings Per Share PaddyPower William Hill
30.00
25.00
20.00
15.00
10.00
5.00
0.00
2013.00 2014.00 2015.00
PaddyPower 2.60 3.00 3.30
William Hill 28.10 23.60 21.60
Year
Clearly, the Paddy Power's EPS expanded generously in 2013, and after that again in
2014 and in 2015, while the William Hill's EPS has decreased both in 2014 and 2015.
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2.5.2 Dividend per Share
Similarly as with EPS, the Profit Per Share ought to be investigated after some time to
decide whether there is a development slant. Profit per share is the total of proclaimed
profits issued by the organisation for each standard share exceptional. It is the aggregate
profits paid out by the business, including interval profits, profit by the quantity of
Dividends
DPS = X 100
No of Shares
100.00
80.00
60.00
40.00
20.00
0.00
2013 2014 2015
PaddyPower 122.00 135.00 149.00
William Hill 10.00 11.90 12.30
Year
In spite of the fact that the desires would be for profits to increment more noteworthy than
that of expansion, a long haul financial specialist may see open doors for the more
prominent long haul estimation of the shares, ought to the organization have the capacity
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to utilize held income to adventure development openings that may bring about more
This ratio measures the percentage of profits made that are paid to the shareholders in
dividends.
EPS
60.00
50.00
Percent
40.00
30.00
20.00
10.00
0.00
2013 2014 2015
PaddyPower 50.26 47.61 51.82
William Hill 58.75 49.59 42.92
Year
The greater the payout percentage, the less the company has for reinvestment. It is noted
that both the companies had made a profit for three years in a row, and has paid a
dividend to the shareholders. This seems like they are attracting the shareholders to
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3.0 Vertical and horizontal analysis
Gross profit for William Hill and Paddy Power are reduced from the year 2013-2015 which
is negative for the companies. This is because of the cost of sales has increased over the
years.
William Hill has a reduction in operating profit from the year 2013-2015, primarily due to
exceptional items. Paddy Power has a higher operating profit in 2014-2015 than William
William Hill pays 10 to 15 times more interest than Paddy Power and has, therefore, a
much-reduced profit before tax from 2013 to 2015. Paddy Power pays interest only in
Paddy Power, however, has reduced its payout for dividends over the years and are
Retained profit for both companies have been reduced over the years 2013-2015 which
Overall Paddy Power comes best out of it with a retained profit of 6.6% over the past year,
The UK was the host to the first international summit on online gambling and also the first
The online gambling industry has maintained constant growth in all years. The British
government has a major role in the British online gambling industry. They put the
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legislation that affects online gaming and affecting the industry's development in the
country. British government is very controlling; they are much focused to get the agreed
prevent money laundering and prevent gambling addiction amongst consumers (Matthew
2006)
The British government has considered cutting the tax rate for online gambling in the UK
(U.S. Newswire 2013). This is because of the major UK online gambling companies have
moved out of the UK in the recent years to be able to save tax costs. It looks like the
British government has realised that there is much profit in the online gambling industry.
It will attract all the major UK online gambling companies back to Britain, but the
3.1.2 Customers
The online betting industry has a broad category of segments. There is some statutory
requirement that consumer should be over 18 years to be able to gamble. They have
consumers who are generally interested in making daily life more exciting by gambling.
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3.2 Paddy Power Betfair plc
Paddy Power Betfair was formed in 2016 after the Paddy Power Plc and Betfair Group
Plc decided to merge to become one of the leading players in the sports betting and
gaming operators.
Founders of Paddy Power were Stewart Kenny, David Power and John Corcoran in 1988
and November 2011 where Paddy Power the most valuable gaming company in the
Today driver Paddy Power with four sports betting and gaming brands:
Paddy Power
Betfair
Sportsbet
TVG
3.2.1 Growth
In September 2015, both Paddy Power plc and Betfair Group plc stated that they agreed
to terms of the merger of both companies and it completed on 2nd February 2016. Both
companies recorded considerable growth in revenues and profits. The revenues of Paddy
Power increased by 24% in 2015, and the operating profit increased 10%. Meanwhile,
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3.2.2 Shareholders
The investment management company BlackRock Inc. has the largest percentage of
shares. They were not on the list of the main shareholders in 2013 and 2014, but the
Capital Group Companies, Inc. was the largest stockholder in those years. The
percentage of the Capital Group Companies shares increased from 3.85% to 8.21% in
2015.
3.2.3 Performance
Taking after an extremely positive first half execution, Paddy Power controlled a detailed
solid basic development for the three months till mid of November. The online games
wagering stakes rise 23%, while online add up to net income grew 7%. Under it's retail
arm, sports stakes grew 12%. As of fifteenth November, Paddy Power control had a net
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obligation of euro 96 million, which is comparable to its 2014 profit before intrigue,
The Dublin-based firm has updated its working benefit estimates to 180 million euros,
which is an ascent of 16.2 million euros, though in 2013 Paddy Power control recorded
3.2.4 Products
There are several products which are in business right now such as,
Sports betting,
Online poker,
Online casino,
Online bingo,
3.2.5 Consumers
The web-based wagering industry has a general class of portions. There is some
statutory necessity that purchaser ought to be more than 18 years to have the capacity
to bet. They have buyers who are for the most part intrigued by making day by day life
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3.2.6 Customer Support
Paddy power tries to understand their customers better, so it provides their customers
with the information and tools. In this way, they can manage their money and time much
better. The company gives the detail at the ability to use the accessibility and how long
they are limited on the machine because every machine can reflect time out. There is a
feature which has found the limit that can help the customer to control their gambling.
The name William Hill originates from the founder of the company for about 83 years ago
In 2002 the Company was listed on the London Stock Exchange and also in
2013 was horse race betting was the major in sports betting in the UK. William Hill led
horse race gambling regarding income and search impression volume (Entertainment
Close Up 2013)
William Hill is the leading player in bookmaker online gaming and betting providers to UK
Customers. They have also made some major investments overseas. They are the third
largest provider of online sports betting in Australia and one of the largest in legal
3.3.1 Growth
Due to a successful shift to mobile, the revenue of mobile Sportsbook increased by 24%
and 36% increase for mobile gaming in 2015 by leading strong online growth. The net
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revenue of the group declined by 1% which was reflected by the lack of the main
international football games in that period; results drop in the retail trade for sports and
extensive work to centralise business in Australia to adapt fast growing the recreational
customer base. The growth of the Online net revenue becomes slow under the influence
3.3.2 Shareholders
The share of 13.03% hold by Parvus Asset Management (UK) LLP is outstandingly high
reduce their share while Oppenheimer Funds, Inc. and Schroders plc are remaining the
same share.
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3.3.3 Performance
Bookmaker William Hill share cost dropped by more than 13% after it cautioned of 25-
million-pound fall in online benefits in 2016. William Hill's online business took a hit in the
period to twentieth of the walk as an advanced execution was affected by controls and
lower than anticipated gross win edges. Share costs dropping more than 50% indicates
Second, Net win edges in the online business were 1.9 % focuses beneath the desires in
3.3.4 Products
Online Betting
Sports betting
Vegas
Macau
Casino
Scratch Card
Poker
Bingo
Virtual
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3.3.5 Consumers
The electronic betting industry has a general class of bits. There is some statutory need
that buyer should be over 18 years to have the ability to wager. They have purchasers
who are generally charmed by making a step by step life all the all the more empowering
by wagering.
William Hill has refreshed the information as regulation change, and it included several
areas in markets position. William Hill helps the customer to get an innovative point. It is
not only one-way management. It has Omni-channel, betting and gaming fixed to attract
measures an expectable profit for the customer to consider. Gaming is a volatile profit to
let the customers use the products. William Hill has an international market, and it owes
to its technology.
3.3.7 Strategies
Each business will have a strategy for its own development. The strategy of William Hill
in the following years is mainly to increase its diversification through its digital and
international revenues. From Paddy Power's specific behaviour, we can see the
implementation of its strategy, such as the merger with another leading company in this
industry in 2016, and this merging strategy also makes the year to become the best year
ever for Paddy Power. By merging companies, it can capture the market quickly, share
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channels with each other, and the combination of two leading companies helps to reduce
3.3.8 Future
The company's future development is always matched with its strategy. For William Hill,
it will begin to enter overseas markets, like building a challenger brand in Australia.
Besides, William Hill will start to strengthen the company's competitiveness, and enhance
the business from the internal organisation, such as the management and policies;
technology platform and IT team; switching investment strategy to choose more profitable
projects. On the one hand, consolidate existing customers, which means addressing
multi-channel and core retail customer demand. One the other hands, using the combined
resources to occupy a larger market, and to lock more customers has also become one
3.3.9 Competitors
entering the market, will affect the development of the company, so the external
general, these two companies are both in a dominant position compared with their
competitors in the contest. For William Hill, as per the abundant cash inflows from its
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operations, this company can further increase its research and development on the
technology platform, which also makes the company different from its competitors
effectively. Most of the company's competitors are still using a third-party platform for
sales and operation of its products, but William Hill has its own technology through
research and development platform, which not only absorb more customers but also let
it stand out from the competitors. In terms of Paddy Power, its advantages in retailing are
prominent, only 565 shops can have an equal turnover of 1163 competitors, which mainly
because of its distribution- Paddy Powers retail shops are always located in the place
where crowds are gathered, and people can easily find a Paddy Power shop within about
3.3.10 Average
The industry data is calculated based on 14 companies including William Hill and Paddy
Power in this industry, whose main business are all gambling and betting activities. In
terms of solvency, the ratio of both companies is much higher than the industry average,
William Hill ranked No. 6, No. 5 and No. 3 respectively from 2013 to 2015, the industry
average is about 30, but William Hill has reached 50 to 60 levels. We can see that William
Hills long-term solvency is quite strong, which also reflect their good use of financial
leverage. However, indicators of Paddy Power ranked No.2, No.2 and No.10 in the past
three years, and the solvency showed an obvious downward trend in 2015, at only 12.41,
which was lower than the industry average of 33.29. Thus, Paddy Power should be wary
of the risk of expiry liabilities. William Hill has reduced from 0.82 in 2013 to 0.76 in 2014,
while only 0.52 at the last year. Similarly, Paddy Power`s Liquidity Ratio in the previous
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three years were 1.17, 1.34 and 0.82, which reflect the environment change has affected
the whole industry that the company showed a decline in their liquidity abilities.
Paddy Power's Income has gone up by 24% to 1,094m in the year 2015, with twofold
digit development overall on the web and retail divisions. Working benefit has gone up
10% to 180m, or half before 66m in new duties and item charges. Weakened EPS up
12% to 332.8 Cents for each share; Entire year's profit up by 18% to 180 cents for every
share and extra 8 per share money return amid 2015.UK retail income has gone up by
This Domain now has 341 shops with a net 20 units opened in 2015. This Irish Retail
income has increased by 14% (up 11% like-for-like). The working benefit of 20m which
is 44%. In the home market now it has 259 shops with 14 units opened in 2015.
Exchanging in William Hill stays in accordance with past entire year working benefit
direction of 260-280m subject to standardized gross win edges inside the online net
income decrease of 11%, gaming was 4% let moreover, Sportsbook was down 17%,
affected by time-outs and self-avoidances; we are checking this intently in any case, at
32
5.0 Recommendation for Investment
Based on the analysis above, it can be found that there are significant differences
between the two companies Paddy Power Betfair Plc and William Hill Plc in terms of
as products and customers. It can be concluded that compared with William Hill, Paddy
Power has a higher return on capital employed and net profit margin, even though the
two companies present similar trend in the aspect of gross profits margin. Furthermore,
through analysing statistics about the two companies ability in capital gearing, earning of
investment and products as well as service portfolio, it is not difficult to come to the
conclusion that generally speaking, Paddy Power has more competitive advantages in
bringing more rewards for clients. Based on these findings, it is suggested that investment
should be made on Paddy Power Betfair Plc. According to the vertical and Horizontal
analysis, we can also see that Paddy Power has more retained profit as compared to
Prashant Jha
Waqas Mahmood
Bin Chen
Zhaozhao Wang
Kiyomi Kamata
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Reference
Anon(2015) 'The Rise of Paddy Power'. Sunday Business Post [online] Aug 30, 2015:
n/a. available form
<http://search.proquest.com/docview/1708057625/fulltext/2E89AA18AC8D4F01PQ/1?a
ccountid=10286> [19 march 2017]
Anon(2013) 'UK Government Plans to Offer Huge Tax Concessions to Online Gambling
Companies'. U.S. Newswire Mar 7 [online], 2013: n/a. available from
<http://search.proquest.com/docview/1314891226?rfr_id=info%3Axri%2Fsid%3Aprimo>
[19 march 2017]
Anon(2010) 'UK Government: New British Licence Requirements for Overseas Online
Gambling Firms'. M2 Presswire [online] Jan 7, 2010: n/a. available from
<http://search.proquest.com/docview/446122418/abstract/827B83E9DBB0464EPQ/1?a
ccountid=10286#> [19 march 2017]
Bradley Gerrard (2017) Paddy Power Betfair claims merger success despite profit hit
[online] available from www.telegraph.co.uk [7 March 2017]
34
John Harrington (2017) William Hill beats the handicap with full-year profits [online]
available from <www.proactiveinvestors.co.uk> [24 February 2017]
Paddy power PLC (2013) Paddy Power annual report 2013 [online] available
from<www.paddypowerplc.com/sites/default/files/attachments/2013_annual_report.pdf>
[15 March 2017]
Paul Jarvis (2017) William Hill CEO Search Nears End as Online Revival Begins [online]
available from<www.bloomberg.com> [24 February 2017]
William Hill PLC (2013) The home of betting William hill plc annual report and accounts
[online] available fromhttp://files.williamhillplc.com/media/1202/ar_2013.pdf [3 March
2017]
William Hill (2017) Regulatory news [online] available from
<https://www.williamhillplc.com/investors/regulatory-news/24389699-trading-
statement/> [25 march 2017]
35
Appendices
36
Paddy Power Betfair plc (2015) ' 000
37
PROFITABILITY: Return on Capital Employed (ROCE)
125,044
ROCE = x 100
410,033 - 208,313
= 61.99%
125,044
Net Profit Margin = x 100
803,687
38
= 15.56%
= Revenue
= 803,687
= 74.75%
39
(Check ratios)
= 15.56 x 3.98
= 61.93%
LIQUIDITY:
Current Ratio
Current Assets
Current Ratio =
Current Liabilities
170,922
=
208,313
40
= 0.82
Liquid Ratio
= 170,922 - 0
= 0.82
41
EFFICIENCY:
Revenue
Fixed assets turnover =
Non-current assets (NBV)
803,687
=
37,391
= 21.49
Sale
Sale per employee =
Numbers of employees
803,687
=
5,069
= 158.55 GBP
42
GEARING (Borrowing):
141,915
= x 100
(50,503 + 141,915)
74 %
43
No. of Shares
No. of Shares
EPS
= 147,293,000 x 100
3.3
= 48,123,143 shares
44
Dividends per Share DPS
No of Shares
= 76,323,000 x 100
51,104,700
45
Dividend Payout
EPS
= 56,072 x 100
108,211
= 51.82 %
46
Paddy Power Betfair plc (2014) ' 000
47
PROFITABILITY: Return on Capital Employed (ROCE)
127,420
ROCE = x 100
492,821 - 183,791
= 41.23%
48
127,420
Net Profit Margin = x 100
685,802
= 18.58%
555,317 x 100
Gross Profit Margin =
685,802
= 80.97%
49
(Check ratios)
= 18.58 x 2.22
= 41.25%
LIQUIDITY:
Current Ratio
Current Assets
Current Ratio =
Current Liabilities
246,891
=
183,791
= 1.34
50
Liquid Ratio
= 246,891 - 0
= 1.34
51
EFFICIENCY:
685,802
=
63,101
= 10.87
Sale
Sale per employee =
Numbers of employees
52
685,802
=
4,856
= 141.23 GBP
GEARING (Borrowing):
Capital Gearing
0
= x 100
(301,021+ 0)
0 %
53
SHAREHOLDERS RATIOS Earnings per Share (EPS)
EPS = 3 Euros
No. of Shares
No. of Shares
EPS
54
= 144,909,000 x 100
= 45,115,140 shares
No of Shares
= 68991000 x 100
50977085
55
DPS = 135 Cents
Dividend Payout
EPS
= 53666 x 100
112720
= 47.6 %
56
Paddy Power Betfair plc (2013) ' 000
57
PROFITABILITY: Return on Capital Employed (ROCE)
115,053
ROCE = x 100
458,052 - 183,398
= 41.89%
115,053
Net Profit Margin = x 100
624,058
58
= 18.44%
516,662 x 100
Gross Profit Margin =
624,058
= 82.79%
59
(Check ratios)
= 18.44 x 2.27
= 41.86%
LIQUIDITY:
Current Ratio
Current Ratio =
Current Assets
Current Liabilities
=
215,317
183,398
60
=
1.17
Liquid Ratio
= 215317 - 0
= 1.17
Current Liabilities =
183,398
61
EFFICIENCY:
Revenue
Fixed assets turnover =
Non-current assets (NBV)
624,058
=
31,919
= 19.55
Sale
Sale per employee =
Numbers of employees
624,058
=
4,156
62
= 150.16 GBP
GEARING (Borrowing):
Capital Gearing
0
= x 100
(260,446 + 0)
0 %
63
SHAREHOLDERS RATIOS Earnings per Share (EPS)
No. of Shares
No. of Shares
EPS
= 123,184,000 x 100
64
2.6
= 47,990,704 shares
No of Shares
= 61,907,000 x 100
50,850,848
65
Dividend Payout
EPS
= 51,844 x 100
103,159
= 50.26 %
66
William Hill Plc (2015) ' 000
67
PROFITABILITY: Return on Capital Employed (ROCE)
224,300
ROCE = x 100
2,323,700 - 663,200
= 13.51%
224,300
Net Profit Margin
x 100
= 1,590,900
68
= 14.10%
Margin = Revenue
Margin = 1,590,900
= 76.25%
69
(Check ratios)
= 14.10 x 0.96
= 13.54%
LIQUIDITY:
Current Ratio
Current Assets
Current Ratio =
Current Liabilities
170,922
=
208,313
= 0.82
70
Liquid Ratio
= 170,922 - 0
= 0.82
EFFICIENCY:
Revenue
Fixed assets turnover =
Non-current assets (NBV)
1,590,900
=
320,300
= 4.97
71
Sale per employee
Sale
Sale per employee =
Numbers of employees
1,590,900
=
15,747
= 101.03 GBP
72
GEARING (Borrowing):
369,500
= x 100
(1,215,800 + 369,500)
23 %
EPS = 21.6 p
73
No. of Shares
No. of Shares
EPS
= 18,990,0000 x 100
21.6
74
= 880,900,000 shares
No of Shares
= 108,400 x 100
880,900
DPS = 12.3 p
75
Dividend Payout
EPS
= 81500 x 100
189900
= 42.92 %
76
William Hill Plc (2014) ' 000
77
PROFITABILITY: Return on Capital Employed (ROCE)
281,800
ROCE = x 100
2,353,100 - 369,800
= 14.21%
78
281,800
Net Profit Margin = x 100
1,609,300
= 17.51%
1,305,100 x 100
Gross Profit Margin =
1,609,300
= 81.10%
79
(Check ratios)
= 17.51 x 0.81
= 14.18%
LIQUIDITY:
Current Ratio
Current Assets
Current Ratio =
Current Liabilities
282,200
=
369,800
= 0.76
80
Liquid Ratio
= 282,200 - 100
= 0.76
81
EFFICIENCY:
Revenue
Fixed assets turnover =
Non-current assets (NBV)
1,609,300
=
87,600
= 18.37
Sale
Sale per employee =
Numbers of employees
82
1,609,300
=
16,078
= 100.09 GBP
GEARING (Borrowing):
716,100
= x 100
(1,160,300 + 716,100)
38 %
83
SHAREHOLDERS RATIOS
EPS = 23.6 p
No. of Shares
No. of Shares
EPS
84
= 206,300,000 x 100
23.6
= 873,200,000 shares
No of Shares
= 104000 x 100
874,152
85
DPS = 11.9 p
Dividend Payout
EPS
= 102,300 x 100
206,300
= 49.59 %
86
William Hill Plc (2013) ' 000
87
PROFITABILITY: Return on Capital Employed (ROCE)
303,000
ROCE = x 100
2,413,900 - 328,600
= 14.53%
88
303,000
Net Profit Margin = x 100
1,486,500
= 20.38%
= Revenue
= 1,486,500
= 81.69%
89
(Check ratios)
= 20.38 x 0.71
= 14.47%
LIQUIDITY:
Current Ratio
Current Ratio =
Current Assets
Current Liabilities
=
272,700
328,600
=
0.83
90
Liquid Ratio
= 272,700 - 200
= 0.83
EFFICIENCY:
Revenue
Fixed assets turnover =
Non-current assets (NBV)
1,486,500
=
55,900
= 26.59
91
Sale per employee
Sale
Sale per employee =
Numbers of employees
1,486,500
=
17,089
= 86.99 GBP
GEARING (Borrowing):
92
895,900
= x 100
(1,023,300+895,900)
47 %
EPS = 28.1 p
No. of Shares
No. of Shares
93
Number of shares = Profit after Tax x 100
EPS
= 21,120,0000 x 100
28.1
= 898,300,000 shares
94
Dividends per Share DPS
No of Shares
= 87,100 x 100
898,809
DPS = 10 p
95
Dividend Payout
EPS
= 124,100 x 100
211,200
= 58.75 %
96
Peer Analysis from FAME
[Companies]
97
98
99